Insurance Industry Now Relies on Simple Products and B2B Distribution
The growth of the insurance industry in Indonesia is no longer seen as solely dependent on the expansion of digital services, but also on the ability of companies to present relevant products, build trust through transparent claim processes, and expand distribution through strategic partnerships. This has become the foundation for the business transformation of PT Central Asia Financial, also known as Asuransi JAGADIRI, in strengthening company growth amidst changing societal needs.
Hilda Limyanton, Director of Operations and Services at JAGADIRI, stated that this transformation is being implemented by introducing products that are simpler, easier to understand, and aligned with customer needs. This strategy was discussed during a forum that brought together insurance, banking, and finance industry players from various Asian countries to discuss strategies for sustainable financial industry development.
Hilda explained that, historically, insurance products tended to be designed with high complexity to allow for personalisation across various needs, particularly for the upper-middle-class segment. However, this complexity often led to insurance products being perceived as complicated and difficult for the general public to comprehend. According to her, the demand for insurance protection with more affordable premiums has driven JAGADISIRI to introduce more specific and lightweight products.
This business transformation is also marked by a shift in service models from direct-to-consumer towards business-to-business (B2B) and business-to-business-to-consumer (B2B2C) collaborations. Through this approach, JAGADIRI can develop products with a modular architecture, allowing protection packages to be customised to the needs of each consumer segment without compromising the company’s quality standards.
In addition to product simplification, JAGADIRI also highlighted the importance of building customer trust before the claim process occurs. First, customers must be able to monitor claim status in real-time, similar to tracking a delivery package, to clearly understand the position of their claim. Second, the language used in insurance policies needs to be simplified so that it can be understood without the assistance of experts. Third, customer service must be supported by technology that maintains a personal and humanistic approach.