Microtakaful Conference Indonesia

PT AVRIST ASSURANCE

2014

Life Takaful Penetration (Contribution)

For The Last 5 Years

Source :

- M. Shaifie Z, “Persoalan operasional yang dihadapi industri asuransi & reasuransi syariah dan studi kasus

- AASI

61,726

75,596

96,441

103,513

113,930

2,509 3,022 4,084 4,816 7,160

4.06% 4.00% 4.23% 4.65%6.28%

23.72%

20.45%

35.14%

17.92%

48.67%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

-

20,000

40,000

60,000

80,000

100,000

120,000

2009 2010 2011 2012 2013

Bru

to C

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Life Takaful Penetration (Contribution) For The Last 5 Years

Total Life Insurance Syariah Life Insurance Portion of Syariah Life Insurance Growth of Syariah Contribution

Syariah Insurance and Reinsurance

Asset Growth Q1, Q2, Q3 & Q4 2013

11,393

12,369 12,147 12,792

3,581 3,659 3,800 3,869

14,975

16,029 15,947 16,661

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q1 2013 Q2 2013 Q3 2013 Q4 2013

Ass

et

(Bil

lio

n R

up

iah

)

Syariah Insurance and Reinsurance Asset Growth Q1, Q2, Q3 & Q4 2013

Life Insurance & Syariah Unit General Insurance & Syariah Reinsurance Total Syariah Insurance

Syariah Market Contribution and

Asset Penetration Against GDP

Q1, Q2, Q3 & Q4 2013

Source : BPS Press Release No. 14/02/th. XVI date 5 February 2012

Notes :

Contribution (Asset) Penetration = Bruto Contribution (Asset) / GDP

2,237

4,416

6,586

8,878

14,975

16,029 15,947 16,661

0.03%

0.05%

0.08%

0.11%

0.18%

0.19% 0.19%0.20%

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Q1 2013 Q2 2013 Q3 2013 Q4 2013

in B

iili

on

Ru

pia

h

Syariah Market Contribution and Asset Penetration Against GDP Q1, Q2, Q3 & Q4 2013

Bruto Contribution Asset Contribution Penetration Asset Penetration

Our Experienced

• Around 40% of individual member of takaful

business are non moslem

• Takaful portion to total assets is still less than

10%

• In year 2013, takaful business contribute 5%

to total profit

• Tabaru’ fund contributed significantly from

micro takaful

Our Experienced

Covered Small loan for women

Credit life takaful pays a death benefit of

initial loan coverage

– Average loan = Rp 800 thousand

– Tenor loan = less than 1 year

– Mode entry age = 47

– Premium = less than Rp 3,000

– Total member = around 19.000

Our Experienced

Perlindungan Sahabat

Credit life takaful pays a death benefit of

outstanding loan coverage

– Mode loan = IDR 50 mio

– Mode tenor loan = 3 years

– Mode entry age = 38

– Premium = single premium

– Total member = around 28.000

SUCCESS KEY OF

MICROTAKAFUL

Building Distribution Channels

Simple product and easy to understand

Support from regulator and industry

Collections of Premium (Renewal Premium, Longer grace period, Bundling with financing installment)

CHALLENGES

Collection Channels

High cost, low persistency,

simple product

Low Awareness of Takaful

Institution, e.g. Bank,

cooperative, post

office

NGO, e.g. BTM

Individual , e.g

Agency ,worksite

Our Respond

Build Distributions Channels

• MNU

• Cooperative

• Rural Bank (BPR)

Build micro Takaful product

• Voluntary base with affordable premium

• Wide coverage, death, accident, hospital benefit

cash

• Improve collection premium process

THANK YOU