Political concerns push up demand for life insurance<\/p>\n
JAKARTA (JP): The demand for life insurance significantly
\nincreased during the last two months as people feel more insecure
\nabout their future, an insurer said yesterday.<\/p>\n
David W. Cottrell, the president of joint venture life
\ninsurance PT Asuransi Jiwa Bumiputera John Hancock said unrest,
\nriots and anti-government demonstrations in the past several
\nmonths, combined with the country's economic crisis, caused
\nfinancial and political uncertainty.<\/p>\n
Such uncertainties prompted the people to seek financial
\nalternatives to protect their future and life insurance coverage
\nhas become one of the best choices, he told journalists at the
\nlaunching of the company's new life insurance product.<\/p>\n
"The people fear that anything bad can happen to them in the
\ncurrent unstable political and social environment. It makes them
\nwant to save something for their loved ones as a safeguard if
\nsomething bad happens to them," he said.<\/p>\n
The company's sales and marketing director Robert A. Wannee
\nsaid the company netted about 200 new policyholders monthly since
\nMay when riots, looting and arson hit Jakarta and several other
\ncities.<\/p>\n
The massive riots, which led to the resignation of President
\nSoeharto, left hundreds of people dead, mostly trapped in burned
\nshopping centers and malls in Jakarta.<\/p>\n
He said before May the number of new policyholders was about
\n100 per month.<\/p>\n
"This month, the premium income is expected to reach US$300
\nmillion, compared to merely $130 million in the same month last
\nyear," he said.<\/p>\n
He added that other life insurance companies were also
\nexperiencing the same trend.<\/p>\n
Bumiputera John Hancock, established in 1987, is 20 percent
\nowned by PT Asuransi Jiwa Bersama Bumiputera 1912, Indonesia's
\noldest life insurer and 80 percent by U.S based John Hancock
\nMutual Life Insurance Company, a giant life insurance company
\nwith over $110 billion assets.<\/p>\n
The company launched a new product called Garuda (Your Family
\nGuard) which combines investment and insurance with protection
\nfrom inflation.<\/p>\n
Cottrell said the new product is particularly designed for
\nIndonesian families who need a financial plan that addresses the
\ncurrent uncertain economic conditions and prepares them for a
\nfinancially sound and stable future.<\/p>\n
"Garuda policyholders are protected from currency depreciation
\nand inflation. Besides, they do not have to pay regular premiums
\nto be protected; in fact, Garuda can work well with only one
\ninitial investment," Cottrell said.<\/p>\n
He said that the company targeted sales of 500 policies per
\nmonth by the end of this year. At least 10 percent of these are
\nexpected to be the Garuda product. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/political-concerns-push-up-demand-for-life-insurance-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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