Ongko Group launches life insurance company
Ongko Group launches life insurance company
JAKARTA (JP): The Ongko Group yesterday launched the operation
of its new venture, PT Ongko Life Insurance, under a technical
assistance arrangement with the united Kingdom-based insurance
firm Legal & General.
"The agreement with Legal & General will help ensure Ongko's
efforts to provide the protection and security that Indonesians
need as the country progresses forward," the group's president,
Irjanto Ongko, told journalists yesterday.
Ongko Life's president, Viven Setiabudi, said that the newly-
established company has an authorized capital of Rp 2 billion
(US$849,834) and a paid-up capital of Rp 10 billion.
"We have already established five branches in Jakarta with 70
sales agents," Viven said.
Viven, who used to be an executive of the publicly-listed PT
Lippo Life, of the Lippo Group, said that her company will make
use of the Ongko Group's nationwide financial distribution
network and will operate a computerized service system, known as
the Life 400 system.
The Life 400 system, which has been used by other companies
like Lippo Life and Panin Life, according to Viven, allows the
company to fast track new product developments.
Commenting on its distribution strength, Irjanto said that the
Ongko Group's bank, Bank Umum Nasional, currently has 113
branches with total assets of Rp 6.5 trillion. The group also
operates a finance company, PT Bunas Finance.
Viven said that the management has proposed launching three
policies -- for scholarship savings, for multi purpose insurance
and for whole life insurance.
Meanwhile, Legal & General's business director, Peter Smyth,
said that his company has noticed the potential life insurance
market in Indonesia but said that it needs a more conducive legal
environment to grow in Indonesia.
An insurance regulation, for example, stipulates that any
newly-established life insurance company should wait for two
years after its establishment to set up a joint venture with
foreign partners. (alo)