Source: Investor Daily Indonesia
28 October 2008

Jakarta – PT Asuransi Adira Dinamika (Adira Insurance) will strengthen the contribution of agency channel by increasing the number of insurance agent up to 5000 people, currently the company has around 800 insurance agents. The contribution of current insurance agents is around Rp 40 – 50 billion or approximately 12 percent of total company business.

The President Director of Adira Insurance Willy S. Dharma said, this effort is intended to optimize the implementation general insurance market in Indonesia, considering that the current general insurance market is getting more competitive.

“We do not consider the competition as a problem. We even see bigger opportunities to develop this market. Therefore, if we only use limited distribution channel, this business will not be widely developed.”  Willy explained during the official opening of The Agency of Adira Insurance office in Jakarta, Monday (10/27).

In order to realize 5000 insurance agents, Adira Insurance cooperates with professional insurance agency development institute, namely Ida Kuraeni Talent Source (IKATS). “We assign IKATS to develop our agents, as we know that IKATS have wide experience in developing and producing professional insurance agents,” Willy explained.
 
IKATS in this cooperation will help the company to recruit and develop the quality of insurance agents as well as bridging transmission process from in branch system, which has been applied by Adira Insurance during this time, into agency system. “in this case, we will provide a system for IKATS which is connected to our current system,” Willy added.

The President Director of IKATS Ida Kuraeny added that her side is ready to support Adira Insurance to gain 5000 insurance agents. “We must achieve this target in the next 2009.  In order to achieve the target, we have to change the mindset of Indonesian people that only know about life insurance agent,” she affirmed.
 
Willy explained, the effort to increase the contribution of agency channel is also conducted to support company’s effort to enter into retail insurance business. “In the future, the possible trend in general insurance sector will be focused on retail business. The reason is that the sustainability of retail business is stronger compared to corporate business,” Willy affirmed.

Until the present time, the business of Adira Insurance mainly derives from group insurance business. One of contributors of this business is PT Adira Dinamika Multifinance (Tbk), the sister company of Adira Insurance,  while the rest of 35 percent of the business is contributed by non-group business.

“In order to develop this non-group business, we have to implement better marketing strategies. One of these strategies is to develop multi distribution channel,” Willy said.