Selling Unit-linked Policy During Covid - Indonesia

Only 12 insurance companies have obtained a licence to sell unit-linked insurance products (PAYDI) online. The 12 insurers represent 20% of the total number of life insurance companies in the country. The Indonesian Life Insurance Association (AAJI) says that in 2020 the number of life insurance companies that were members of the organisation was 59.

In November 2020, OJK granted the licence to nine life insurance companies, the first time such a licence was granted. Since then, only three more have qualified for the licence.

The chief executive of OJK's Non-Bank Financial Industry Supervisor (IKNB), Mr Riswinandi, said that the use of technology in unit-linked marketing is a vital factor in effecting online sales, especially during the COVID-19 pandemic. Unfortunately, there are only 12 companies that pass our vetting. Hopefully in the future, if insurers want to concentrate there [selling through digital channels], they will have prepared their IT capacity. OJK provides opportunities for insurance companies to prepare IT systems to support digital unit-linked sales.