Tue, 03 Aug 1999

Zurich Life expects 40% income increase

JAKARTA (JP): PT Zurich Life Insurance Indonesia and its sister company PT Zurich Insurance Indonesia predict a 40 percent increase in premium income from their latest life insurance product launched here on Monday.

Chief executive of Zurich Insurance Hans Martin Graf told a news conference that the group expected to increase its premium income this year to more than Rp 100 billion (about US$15 million) from about Rp 75 billion last year.

Zurich Life president Ronald A. Cheyne explained that the new product, ZuRICH LINK, was an investment vehicle for life protection which allows customers to set their own investment choice and determine the level of their life insurance protection.

The product offers options for customers to invest in investment funds set in four currencies of the rupiah, pound sterling, U.S dollar and Australian dollar.

Cheyne said customers could spread their investment in several currencies or invest in a single currency, and could withdraw either part or all of the investment at any time.

Graf said his company was optimistic about the performance of the new product considering the budding economic recovery.

"We foresee robust growth in our business this year as the first half already posted a 50 percent rise in our life insurance's premium income and 30 percent increase in nonlife premiums."

Zurich Life marketing head Handojo G. Kusuma said the product would give his company a leading position in the market and contribute greatly to the company's business portfolio.

Kusuma estimated that the product, targeted at married professionals, would be able to attract 2,000 policy holders by the end of the year.

He said Zurich at present had about 30,000 life and nonlife policy holders in the country.

Zurich Life, established in 1994, is a joint venture of Zurich Financial Services Group of Switzerland (ZFSG) and local company PT Putra Surya Perkasa.

Its sister company Zurich Insurance Indonesia, established in 1991, provides general insurance products such as for motor vehicles, fire and other nonlife solutions.

Graf said Zurich Life held between 3 percent and 4 percent of Indonesia's life insurance market, ranking in the top five of the 61 life insurers in the country. (01)