Cigna expects bullish demand in local insurance market
Cigna expects bullish demand in local insurance market
JAKARTA (JP): Insurance firm PT Asuransi Cigna, formerly known
as PT Asuransi Niaga Cigna Life, expects a significant increase
in its life assurance business this year despite the bleak
outlook for the country's economy.
Company finance director David Batubara said on Wednesday that
the company's revenue was projected to increase by 35 percent to
Rp 92 billion (about US$8.4 million) in 2001 from Rp 68 billion
in 2000.
He attributed the projected increase in revenue to a
significant rise in the number of new individual policy holders.
"We're quite optimistic of reaching the target although we
only recorded a 13 percent increase in revenue during the first
quarter," he said.
He said that the low increase in revenue between January and
March was more due to the market having reached a cyclical low
point during the period.
"The curve usually goes that way," he said.
Cigna, an affiliate of Philadelphia-based insurance company
Cigna International, officially changed its name last week as
part of its corporate image enhancement.
At the present time, Cigna International controls 80 percent
of the insurance firm's shares after acquiring 20 percent of Bank
Niaga's share in the firm in December last year.
The remaining 20 percent of the shares are still owned by Bank
Niaga.
Cigna started its operation in Indonesia in 1994 through a
joint venture with Bank Niaga.
Many local companies have expressed worries about their
business prospects due to the country's political uncertainties
and the overall economic outlook.
Analysts have said it would be difficult for Indonesia to meet
its 4% economic growth target given such unfavorable conditions.
They are also worried that the economic slowdown in major
countries, particularly the United States and Japan, will deal a
major blow to the country's economy.
David said he was upbeat that the number of policy holders
would grow by 15 percent this year from about 28,000 in 2000
despite the gloomy outlook.
The company's marketing director Raeshita Suardi said that
Cigna, which offers around 56 life, health and personal accident
products, would continue its strategic alliance with Bank Niaga
by supplying Bank Niaga's customers with its Bancassurance life
products.
Besides Bank Niaga, Cigna also supplies other corporate
customers including Dinners Club, Standard Chartered, GE Capital
and Bank BNI, she added.
Currently, the firm has branches in Jakarta, Bandung, and
Surabaya. It has also opened representative offices in Yogya,
Semarang, Malang, Medan, Bali and Makassar. (05)