Source: INVESTOR DAILY
Tuesday, 14 October 2008
JAKARTA – The revenue of sharia division of PT Asuransi Adira Dinamika as per August has exceeded 2008 target of Rp 8 billion. The revenue is supported by motor vehicle business line which reaches around 60 percent of total business portfolio. While the remained is contributed by other business lines, such as property insurance.
Managing Director of PT Asuransi Adira Indra Baruna said that his side is optimistic that by the end of this year, the sharia division will gain premium revenue of around Rp 9 – 10 billion.
”Our target for sharia business was previously set at Rp 8 billion. However, we have achieved the set target. Last year, total premium revenue from new sharia business was only around Rp 3-4 billion.
This could mean that there business realization is increased by up to threefold,” said Indra in Jakarta, not long ago.
Indra added that one of factors which supports the performance of sharia division is policy migration from conventional to sharia. “I don’t know exactly the number of migrated policy. However, there are a lot of policy holders who are interested with profit sharing scheme offered by sharia insurance. Apart from that, new business in sharia also develops rapidly,” Indra stated.
In the future, in order to develop sharia business, Adira has planned to strengthen agency unit and cooperation with third party, such as with banking industry (bancassurance). During this time, the marketing of insurance products is offered by company through several channels, such as agency, bank, broker, dealer and multifinance company.
“In addition, we will also develop product and enter new business line. It applies not only to sharia business, but to conventional business as well. If we do not realize it, we will be trapped into a tariff war condition that will reduce our profit margin,” Isa said.
In the next year, Adira management expects that the contribution of sharia division will keep increasing. “Right now, the contribution can be considered as very small. As per August, conventional premium revenue has achieved Rp 400 billion, while new sharia division only reaches Rp 8 billion. In the next year, we expect higher sharia premium revenue, so that it will be able to support company business as a whole,” indra explained. (bee)