Source: Bisnis Indonesia
28 October 2008

JAKARTA: Being serious in developing retail business, PT Asuransi Adira Dinamika (Adira Insurance) develops agency distribution channel with contribution targeted at 15-20 percent of total business.

The President Director of Adira Insurance Willy Suwandi Dharma admitted the current low market penetration even creates bigger opportunity to manage insurance market by developing several distribution channels including agency channel for retail business.

“We consider the sustainability of retail business is stronger compared to corporate business,” said Willy during the official opening of The Agency of Adira Insurance office in Jakarta, yesterday.

Willy said that this year’s contribution of agency distribution channel reaches 12 – 13 percent or around Rp 40 billion up to Rp 50 billion. By developing agency system in cooperation with Ida Kuraeny Talent Sources (IKATS), it is expected that the contribution of insurance agents will increase up to 15-20 percent.

According to Willy, developing insurance agent with correct system will encourage agent to be more professional so that the insured person or potential insured person will get proper information.

We assign IKATS as we know that IKATS have wide experience in developing and producing professional insurance agents. It is expected that this cooperation will give positive impact for Adira, particularly for our customers who will obtain optimal experience from our agents,” he added.

Willy admitted that the contribution of group business still dominates up to 65 percent of the total business. However it should not be considered as the reason for the company not to develop the business.
 
The President Director of IKATS Ida Kuraeny admitted that agency constitutes main distribution channel in life insurance, however general insurance sector starts to use this distribution channel.