Finansial Wiramitra Danadyaksa, a local insurance arm of Hong Kong-based investment company Pacific Century Group, targets one million clients to its new single premium life insurance by the end of next year, after sealing insurance distribution deal with Bank KEB Hana Indonesia, the local subsidiary of of the South Korean bank on Thursday (1/9). (JG Screenshot)
FWD Life Indonesia, Bank KEB Hana Join Hands on Bancassurance Business
BY :SARAH YUNIARNI
SEPTEMBER 02, 2016
Jakarta. Finansial Wiramitra Danadyaksa, the local insurance arm of Hong Kong-based investment company Pacific Century Group, targets one million clients in its new single premium life insurance by the end of next year, after sealing an insurance distribution deal with Bank KEB Hana Indonesia, the local subsidiary of the South Korean bank on Thursday (01/09).
Under the agreement, the insurance firm, which uses FWD Life Indonesia trade name, would sell its single-premium life insurance product — dubbed as FWD Infinite Link — through more than 30 Bank KEB Hana's branches in Indonesia. In return FWD Life Indonesia will offer its clients with mortgage product from the lender.
"We are very excited to be partnered with Bank KEB Hana Indonesia which share the same value with us, as we both put first the customers needs and satisfaction," Rudi Kamdani, the president director of FWD Life Indonesia, said in a statement.
The new product requires a minimum Rp 100 million ($7,550) as a one-time premium payment for covering death or accidental injury risks up to 100-years-old.
It also offers flexibility to change the insurance policy's investment instrument that includes stocks from all over the world and fixed income instruments in Asia, excluding Japan.
FWD Life Indonesia has already collaborated with small-size lender Bank Victoria International in 2014 to offer bancassurance product across Indonesia. The insurer is part of Pacific Century's insurance arm FWD Group which also operates in Hong Kong, Macau, Thailand and the Philippines.
For, Bank KEB Hana the cooperation marked its effort to boost fees from bancassurance — or selling insurance policies to bank clients business — said Hana Gempur Eskandaru Widansyah, the lender's funding and wealth management business division head.
Almost 55 million Indonesians, roughly a fifth of the country's population, were covered by life insurance at the end of last year, up 2.3 percent increase from the same period in the previous year at 53.7 million, according to the a statement released by Association of Life Insurers on March.