In an effort to increase its local client base, Multinational life insurer Axa Financial Indonesia, part of the Axa Indonesia Group, has launched a new digital tool aimed at a younger demographic.
Axa Financial Indonesia’s move is part of an overall strategy by the insurance industry in the country, which has continued to report low insurance penetration despite Indonesia’s status as the largest economy in Southeast Asia.
Data from the Financial Services Authority (OJK) shows that the insurance penetration ratio stood at a paltry 2.6 percent only, as of September, below the ratios in Malaysia, Singapore and Thailand at over 5 percent.
The new tool will provide easy access to information for several purposes, namely creating a children's education fund, retirement fund, business capital and tourism or pilgrimage fund.
Modern Dynamic Citizens
Axa Financial Indonesia chief agency officer Nina Ong said the tool and products were directed at modern dynamic citizens, ages 25 to 45 years old.
The company expects the tool to help attract 20 percent to 30 percent of such citizens as its new clients and expand its customer base, which is now served by about 14,000 agents.
Axa Financial Indonesia booked $108.03 million in total revenue in the first nine months of 2016, a more than sixfold increase compared to the same period in 2015, supported by positive results in its investments.
