AIA Reconnect WIth Policyholders

To encourage existing customers to reconnect with their AIA financial services consultants for a financial health review, AIA created a direct mailer for this purpose. This was done through the idea of helping customers realise the impact of an under insurance gap on their futures.

The direct mailer aimed to align with AIA Singapore’s commitment to helping individuals and families in Singapore achieve their financial goals and lead happier, healthier and better lives.

The direct mailer featured a dark cloud which gave way to rays of sunlight when a tab was pulled, conveying the stark difference between an uncertain future and a brighter one with AIA Singapore’s support.

Upon opening the tab, a variety of incentives were provided for recipients to take action and connect with their financial consultants.

This included Robinsons gift vouchers and a chance to win a trip to London. It also hoped to strike an instant emotional connection through the use of personalisation. Three target audience segments, based on age, each received a slightly different version of the direct mailer which was relevant to their stage of life.

The first segment was Gen Y which focused on relating to the start of their financial journey.  It appealed to those who are keen on staying one step ahead of the future and highlighted the importance of being able to see that future clearly and plan for it early.

The second target segment was young parents. The direct mailer aimed to demonstrate an understanding of their day-to-day concerns, from working overtime to becoming a parent for the first time. It also aimed to show its support through better savings plans for growing families.

The last target segment was pre-retirees who require financial advice as they seek a regular income stream to supplement their lifestyle or a way to leave a richer legacy.

Objective - To remind Singaporeans to review their financial portfolios because of ever-changing financial needs. This ensures they are prepared as they move through different stages in life. It also aims to encourage policyholders to take the simple first step of reconnecting with their financial services consultant.

Target Audience - The campaign was targeted at existing AIA Singapore policyholders, especially those who were likely to be underinsured because of a busy lifestyle.

Result - The campaign exceeded the sales forecast premiums by 74% and was well-received by customers who connected with their AIA financial services consultants within the three-month launch.

Sinarmas Life WIth BJB

Bank Pembangunan Daerah Jawa Barat dan Banten Tbk (BJB) regional development bank cooperates with insurance company Sinarmas MSIG. This cooperation is to strengthen life insurance services through its bancassurance products—SMiLe Optima Link.

"Sinarmas MSIG Life is committed to present to make people and business partners, especially in West Java, as priority through product innovation and maximum services," said Sinarmas MSIG Life President Director, Wednesday (05/10/2017).

Sinarmas is very enthusiastic to strengthen the cooperation with the Bank with the stock symbol BJBR by presenting SMiLe Optima Link.

"Supported by 65 branch offices, 311 sub-branches and 337 bank bjb cash offices spread across 14 provinces in Indonesia, we hope that SMiLe Optima Link life and investment coverage protection products will be closer to the community," he said.

Consumer Director of Bank BJB Fermiyanti admitted believing the presence of SMiLe Optima Link with the advantages offered can increase customer loyalty because it provides an alternative financial planning that not only provides protection of life insurance.

"But also the development of investment for the financial comfort of customers in the future," she added.

Indonesia Life Insurance Up 2017

Premiums in the Indonesian life industry soared by 28% in the first quarter of this year, compared to the same period in 2016, according to latest data released from the Financial Services Authority (OJK). 

Total premiums reached IDR35.19trn (£2.05bn, €2.36bn, $2.64bn), 28% higher than the same period in 2015, show the OJK figures. 

The pace of growth in the life sector has picked up, as the increase in life premiums in the first quarter of 2016 was 24%, according to local media reports.

Nelly Husnayati, head of inter-relation at Indonesian Life Insurance Association (AAJI), said the premiums accumulated in 2016 reached IDR167trn, oan increase of about 30% compared to 2015.

The increase is down to a surge in the number of licensed insurance agents which rose from around 415,000 in 2014 to 543,000 in 2016, data collected by AAJI shows.

AAJI’s executive director Togar Pasaribu said: "Our hope is that this achievement can be maintained until the fourth quarter.” 

He revealed that currently less than 5% of the total population of Indonesia have life insurance.

Pasaribu expects that the government’s infrastructure programme, which is focused on developing land outside the Java region, home to the nation’s capital Jakarta, will boost insurance penetration.

In April, PT Prudential Life Assurance, one of Indonesia’s largest life insurance reported total premium income of IDR26.5trn (£1.5bn, €1.78bn, $2bn) from its 3.4 million customers.

The figure was slightly higher than the previous year.

Allianz Looking For Elusive Takaful License

Allianz Malaysia Bhd - is still keen on venturing into the takaful business and will continue to be on the lookout for such opportunities. This follows as talks to purchase HSBC Amanah Takaful was discontinued recently, because both parties could not come to an agreement on the price of the acquisition.

Speaking after the group’s AGM, Allianz Malaysia CEO Zakri Khir said the group is not currently in talks with any parties. “We will eventually find something that we like, at the right price. We will find a fair price – we are not going to pay exorbitant prices. So far, we have not initiated any talks with anyone yet,” said Zakri.

He added that takaful penetration rate in Malaysia is low, at an estimated 15%, when compared to the number of policies in the population. Going forward, Allianz Malaysia expects its life insurance business to grow, while the non-life insurance segment to remain stable.

The first and second quarter of 2017 will remain challenging, though 2017 is expected to be a better year than 2016. Despite the economic challenges last year, Allianz Malaysia managed to deliver a gross written premium of RM4.2bil and a record high pre-tax profit of RM454.6mil, by diversifying its products and channels. Its new business value rose 45% last year.

The group’s target for the year is to achieve a “close to double-digit” revenue growth and double-digit net profit growth. Allianz Malaysia is also banking on the growth potential stemming from the relatively low insurance penetration rate of 57% in Malaysia.

Allianz Life Insurance Malaysia Bhd CEO Joseph K. Gross noted that awareness would drive growth in the insurance industry, particularly when Allianz Malaysia begun to digitise its products to make it more transparent and easier for people to understand.

“It is the customer experience that plays a vital role in gaining a higher insurance penetration rate. If you radically improve the customer experience, which means simplifying and demistifying the products, making them easy to purchase and service, the price will not be the most critical parameter. It will be the value for money that people see.

“Take a look at any digital industry that has been growing explosively – it is driven by customer experience and simplicity, not price,” said Gross.

Allianz - Profit 2017 - Slipped Into Red

Allianz Malaysia Bhd’s first-quarter net profit fell 8.2% to RM67.17 million from RM73.18 million a year ago, on lower contribution from its general insurance operation due mainly to lower underwriting profit arising from investment in digital assets and the provision of impairment on insurance receivables.

Earnings per share dropped to 38.67 sen from 43.22 sen a year ago.

Quarterly revenue, however, rose 3.6% to RM1.21 billion in the three months ended March 31, 2017 (1QFY17) from RM1.17 billion in 1QFY16, due to higher gross earned premiums and investment income by RM28.5 million and RM13.1 million respectively.

In a filing with Bursa Malaysia today, Allianz Malaysia said its general insurance operation delivered a pre-tax profit of RM73.5 million in 1QFY17,  an 18.3% decline from RM90 million in 1QFY16.

However, its life insurance operation recorded a higher pre-tax profit of RM36.3 million in 1QFY17, up 40.2% from RM25.9 million in 1QFY16 due mainly to higher contribution from protection business.

On prospects, Allianz Malaysia said it is confident of performing satisfactorily for the remaining year and to continue to deliver long-term value to its stakeholders.

"Motor will remain the major contributor to the general insurance business and it will continue monitoring its motor profitability via a comprehensive portfolio management.

"The general insurance subsidiary will also leverage on its strong base of motor customers to expand into other non-motor products," it added.

In terms of its life insurance subsidiary, the group will continue to strengthen its distribution capabilities in all channels and its portfolio management.

"It (the life insurance division) will remain focus on enlarging and building a professional and productive agency force. It will also focus on the sale of investment-linked regular premium products with rider attachments which provide higher margins," said Allianz Malaysia.

Allianz Malaysia shares closed down 8 sen or 0.63% at RM12.52 today, with 391,200 shares done, for a market capitalisation of RM2.18 billion.

AXA Affin Life - 2017 Profit Tanked Again

Affin Holdings Bhd - net profit for its first quarter ended March 31, 2017 rose 4% to RM120.18mil compared with RM115.57mil in the previous corresponding period, mainly due to the increase in other operating income, Islamic banking income and net interest income totalling RM82.7mil.

In a filing with Bursa Malaysia yesterday, the company also said higher overhead expenses of RM56mil and lower share of profits in its associate of RM8.2mil also contributed to the improved earnings.

“For the period under review, there was an allowance for loan impairment loss of RM5.8mil as compared to a write-back of RM1.6mil in the previous year,” Affin said. The results of the commercial banking segment was mainly attributable to the Affin Bank Bhd group which reported a pre-tax profit of RM125.3mil for the quarter ended March 31, 2017 as compared to RM123.1mil for the preceding year’s corresponding quarter.Revenue in the first quarter increased to RM509.60mil from RM426.92mil a year earlier.

“This was mainly due to the increase in Islamic banking income, net interest income and other operating totalling RM28.9mil, net of the allowance for loan impairment of RM6.7mil compared to a write-back of RM1.7mil in the previous year.”

The results of its investment banking segment, meanwhile, was attributed to Affin Hwang Investment Bank Bhd, which reported a higher pre-tax profit of RM37.6mil in the first quarter of 2017 compared to RM20.8mil in the previous corresponding period.

This, Affin said, was mainly due to higher other operating income of RM52.2mil net of higher overhead expenses of RM38.6mil.

In the insurance segment, AXA Affin Life Insurance Bhd saw improvement in its results, with a lower pre-tax loss of RM5.3mil compared to the pre-tax loss of RM11.6mil in the first quarter of 2016, as a result of higher investment income and lower reserves for future policyholders’ liabilities due to movement in Malaysian Government Securities rate.

The company added that AXA Affin General Insurance Bhd, meanwhile, recorded a pre-tax profit of RM15.5mil for the current quarter.

On the prospects of its commercial banking segment, Affin said that its strategic objectives would be to focus on strengthening its fee-based income from digital banking, unit trust and credit card to mitigate the impact of margin compression on net interest income.

On its investment banking segment, it said its securities and asset management businesses should benefit from the overall improved market sentiments, especially when the economic activity is projected to improve in 2017.

Affin, meanwhile, said it expects the Malaysian life insurance industry to continue to grow at a moderate rate.

In a separate statement, Affin clarified a local news story that said it had already sold a 16-storey building in Shah Alam.

It said the sale and purchase agreement in relation to the proposed transaction is currently being prepared and has yet to be executed.