New company takes the mystery out of insurance
Laying out a heap of cash for a boat secures the buyer something tangible, an object that is likely to make waves wherever you cruise. Handing over the same amount of money for an insurance policy, however, is drastically different. The buyer obtains nothing concrete, just a promise that if anything should go wrong, the insurance company will pay. It is a relationship that requires trust and an understanding of how insurance works.
Recently launched joint-venture PT AGF SBU General Insurance recognizes the importance of this covenant and is looking to the long term to develop the Indonesian public's understanding of the insurance industry.
Heranius Pramono, the vice-president director of the 60-40 venture, which amalgamates Assurances Generales de France and GROUP SBU Bank of Indonesia, insisted they will develop this necessary trust through being transparent and, above all, human.
"We are fair with the client from the beginning," said Heranius. "We let the client know exactly what they are buying from us and its real cost."
To do this, AGF SBU will concentrate on provisional insurance for general nonlife policies. By concentrating in areas like personal and commercial insurance for individual car, building and fire policies, Heranius said the company can better concentrate on its "specialty of providing special products for specific clients".
The company, for example, can tailor a policy to the needs of a shipbuilder by explaining the actual risks involved and then arriving at a realistic annual fee -- rather than a fee driven by a desire to undercut the competition. This approach guarantees that clients understand the exact benefits they are buying and will not be surprised by a lower-than-expected indemnity.
Launching
The joint venture, officially launched November 7 after nine months of preliminary work, weds AGF's 178 years of technical expertise with SBU's ability to underwrite the company with its paid-up capital of Rp 45 billion. Besides having the ability to back its commitments, the Jakarta-based company has an extensive network of branch offices in Bandung, Semarang, Surabaya and Medan.
Although entering the industry in what Heranius terms an "Asia-wide down cycle", directors Bernard Libourel and Bruno Veyrent are confident they can raise awareness of insurance in Indonesia and build a long-term client base. Heranius disclosed that they hope to continue their current growth of doubling their number of clients each month, as well as increasing their standing in this highly competitive industry.
"Our aim is to be, by the year 2000, an important player. Maybe not the biggest but one of the most important," Heranius said.
To achieve this aim, the new company will first have to convince a skeptical public that purchasing insurance can protect their beloved boat. Not an easy task but one that PT AGF SBU General Insurance has both the expertise and commitment to achieve.