Bisnis Indonesia – PT Asuransi Asei Indonesia has set a target for financial insurance services to dominate its business portfolio in 2021. This focus aims to anticipate the establishment of a state-owned general insurance holding company. Following are excerpts from the Bisnis’ interview with Acting President Director of PT Asuransi Asei Indonesia, Riduan Simanjuntak:
How is Asuransi Asei’s business portfolio?
The portion of non-financial insurance that we categorize as general insurance business is still 80%. Of that portion, 70% is property insurance, 10% -15% is energy insurance, especially oil and gas insurance, and the remaining portion, 5% each consists of marine cargo insurance, marine hull insurance and liability insurance.
Meanwhile, the other 20% is contributed by financial insurance. This type of insurance is specifically divided into three, namely trade credit insurance, credit insurance, and guarantee. Trade credit insurance is actually a new name of export insurance which we are trying to develop. Export insurance was formerly known as foreign trade credit, while now it is named trade credit insurance as we also wish to provide protection for domestic trade. This insurance is divided into four types, i.e. export credit insurance, domestic credit insurance, export bill insurance, and domestic credit insurance financing.
Credit insurance is to protect banking products in general, either consumptive, productive or investment. Meanwhile, the guarantee products include surety bond, counter guarantees and others. We promote the three of them, though up until now the biggest contributor remains credit insurance as it directly relates to banks.
Why do we choose to focus on financial insurance?
First, it is due to historical considerations. We already have the infrastructure and experienced human resources in that field. Secondly, suppose there is establishment of a state-owned general insurance holding company, we also need to consider whether we can keep up with Jasindo (PT Asuransi Jasa Indonesia (Persero)) which was established and has focused on general insurance business since its very beginning. As SOEs, we are not going to compete against each other, instead; we will endeavor to build a synergy. Of course, there must be a focus or specialization taken by each company.
Automatically, we will consider our performance in the general insurance business. Asei’s source of equity was originally financial insurance. We started providing general insurance in 2002. We saw growth, yet there seems to be a slowdown in the recent years. This is why we intend to shift to financial insurance.
However, it will be unwise for us to neglect our existing infrastructure and human resources in the field of general insurance. Our portfolio is partly established through the synergy between the financial and non-financial products. In fact, customers choose us for we are able to provide protection to all of their risks.
What is Asuransi Asei’s target and plan relating to the adjustment in its portfolio?
We are targeting that by 2021 about 60% of our business will be in the category of financial insurance. We have made a roadmap to anticipate the specialization direction in case of the establishment of a state-owned general insurance holding company.
We have changed our business portfolio since in 2017 and we expect to achieve our goal by 2021.
This year we are doing a lot of cooperation again with banks as a result of the change of company name in recent time. This condition also affects the legal aspects of cooperation with banks. Possibly, the result of the cooperation is not optimal this year or in 2018, yet it is expected to be optimal in 2021.