“ … Here is another one. A change in what Human nature will allow for government. "Careful, Kryon, don't talk about politics. You'll get in trouble." I won't get in trouble. I'm going to tell you to watch for leadership that cares about you. "You mean politics is going to change?" It already has. It's beginning. Watch for it. You're going to see a total phase-out of old energy dictatorships eventually. The potential is that you're going to see that before 2013.

They're going to fall over, you know, because the energy of the population will not sustain an old energy leader ..."
"Update on Current Events" – Jul 23, 2011 (Kryon channelled by Lee Carroll) - (Subjects: The Humanization of God, Gaia, Shift of Human Consciousness, 2012, Benevolent Design, Financial Institutes (Recession, System to Change ...), Water Cycle (Heat up, Mini Ice Ace, Oceans, Fish, Earthquakes ..), Nuclear Power Revealed, Geothermal Power, Hydro Power, Drinking Water from Seawater, No need for Oil as Much, Middle East in Peace, Persia/Iran Uprising, Muhammad, Israel, DNA, Two Dictators to fall soon, Africa, China, (Old) Souls, Species to go, Whales to Humans, Global Unity,..... etc.)
(Subjects: Who/What is Kryon ?, Egypt Uprising, Iran/Persia Uprising, Peace in Middle East without Israel actively involved, Muhammad, "Conceptual" Youth Revolution, "Conceptual" Managed Business, Internet, Social Media, News Media, Google, Bankers, Global Unity,..... etc.)

Monday, December 22, 2008

Life insurance to continue to flourish

The Jakarta Post, Jakarta | Mon, 12/22/2008 11:06 AM  

The country's life insurance industry will ride the waves of global economic downturn largely unscathed, with growth in premium income likely to hit 33 percent next year, say business players. 

David Beynon, vice chairman of the Indonesian Life Insurance Association (AAJI), told an industry seminar last week that the growth anticipated for 2009 was due to the under-penetrated insurance market, and the nature of the business. 

Whilst temporary cuts in profits may inevitable during a downturn, life insurance is a long term business, and profitability should be judged over many years, he said. 

Peter Heidinger, managing director and regional industry head of financial institutions for Citi Asia Pacific region, said although the insurance industry declined worldwide in the past year, the Indonesian market is of significant potential, in particular, the life insurance sector. 

In 2007, total insurance premiums in Indonesia grew by more than 30 percent. Most of this, 60 percent, came from the life sector. The general sector only rose by 2 percent, Heidinger explained. 

The Indonesian insurance market is supported by more than 100 providers, although overall, the insurance market in the country remains significantly under-penetrated, he said. 

In terms of life insurance penetration, the Indonesian market in terms of premiums was equivalent to 1.1 percent of GDP in 2007. This was far lower than Singapore's premium penetration of 6.2 percent of GDP, or Malaysia with 3.1 percent. 

Indonesian premiums per capita were only $20.4 in 2007, while Singaporeans spent $2,244.7 per capita on premiums and Malaysians $221.5. 

A study jointly undertaken by Allianz and the United Nations Development Program in 2006 projected there could be as many as 2 million microinsurance policies in Indonesia by 2010, and that this could double to 4 million by 2012. 

Isa Rachmatarwata, head of the insurance division of the Indonesian Capital Market and Non-Bank Financial Institutions Supervisory Agency (Bapepam-LK) said the insurance industry had a huge market still to explore. 

He said there was no reason to be pessimistic although a prudent attitude towards investment was required. "The agency will monitor the investment practices of insurance companies, specifically those under investment managers." 

Isa said Indonesia's premium income in 2007 was Rp 48.5 trillion (US$4.3 billion) from life insurance and Rp 20.2 trillion from non-life premiums. In the first three quarters of 2008, income from life insurance had reached Rp 40.8 trillion alongside Rp 17.9 trillion for non-life premiums. 

For example, insurance company PT Asuransi Jiwa Manulife Indonesia had received Rp 889.7 billion in premiums as of September 2008. 

Its new business premiums had grown 108 percent by the third quarter of 2008 compared year on year to the previous period, said Beynon, who is also the president director of the company. 

Beynon said insurance products which would be in favor with the customers next year included the traditional premium and the regular unit-linked premium. "These will take over the single premium unit link market and continue to grow." 

Single premium unit link is an insurance product that required the policy holder to pay once in advance. The product was then invested into other financial products. 

Regular premium unit link is also invested into other products in another financial body, but the customers pay the premiums in installments. (iwp)

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