Unit Linked Product Sales, Development Gap Strengthened

The Indonesian Life Insurance Association or AAJI considers that 2021 still has big challenges for the protection business. Industry players also need to carefully look for gaps in business development and maintain service quality, including unit-linked as the main product.

Chairman of the Management Board of the Indonesian Life Insurance Association (AAJI) Budi Tampubolon explained that uncertainty is still quite high in the business climate this year. This is because the spread of Covid-19 continues to occur and a number of countries are struggling to face the second wave of the pandemic, along with the mutation of the delta virus variant. According to him, 2021 is still a year full of challenges for the life insurance business. Nevertheless, there is still potential for growth for the life insurance industry, including investment-linked (PAYDI) or unit-linked insurance products which are the industry's main portfolio. "This year the room for growth is open, but we can't run a business or look for marketing gaps like the previous year," said Budi. He considered that unit-linked products had a significant impact on industry performance, because these products accounted for nearly three-quarters of the industry's portfolio. In depressed capital market conditions such as at the beginning of the Covid-19 pandemic, some policy holders withdraw funds or terminate their policies, although a few others add investment components.

|•SOURCE•| Articles :BISNIS | Image :ASURANSIKU |

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