Axa Mandiri Financial Services, one of Indonesia’s major insurance companies, expects to maintain double-digit growth in premium income this year, by tapping into the large customer base of its parent company, Bank Mandiri.
Axa Mandiri Financial Services (Axa Mandiri)'s president director Handojo G. Kusuma said that the insurer would market its products more intensively to customers of Bank Mandiri, which has one of the largest customer bases in the country.
«We hope to book double-digit growth in premium income by tailoring insurance products to the special needs of Bank Mandiri customers,» said Kusuma, who was quoted in the «Jakarta Post» (behind paywall).
Studying Market Segmentation
Despite having worked together with Bank Mandiri for many years, Axa Mandiri's penetration among the bank's clients was still below optimal levels, he noted.
To realize the targeted double-digit growth in premium income, Axa Mandiri did a data analytics study on Bank Mandiri's market segmentation. «By understanding the needs of each segment better, we will be able to improve upselling and cross-selling,» Kusuma added.
Market Potential
To effectively market to the millennials, the company would study the behavior and characteristics of customers in that segment and offer an affordable and easy-to-understand retail package that would be relevant and convenient for them, Handojo explained.
For the growing halal market, the company planned to expand its portfolio of sharia-compliant products to between 20 percent and 25 percent of its business in the upcoming year from 4 to 5 percent at present.
Grow Sharia Business
«If we look at the market share potential, we can say that 90 percent of Indonesians are Muslims, [hence] we will continue to grow our sharia business,» said Axa Mandiri sales director Henky Oktavianus.
He added that the company was still studying the sharia market segmentation of its sister company, Bank Syariah Mandiri, to understand what products to offer its clients and how best to sell them.
Gross Premiums Up
Axa Mandiri booked a gross premium income of 9.5 trillion rupiahs ($698.5 million) in 2019, an increase of 11 percent from 8.59 trillion rupiahs in 2018. Net investment touched 668 billion rupiahs in 2019, following a deficit of 1.68 trillion rupiahs in 2018.
As a result, revenue totaled Rp 10.74 trillion in 2019, a 44 percent year-on-year increase. Net profit, therefore, rose 6 percent to 1 trillion rupiahs in 2019.
Axa Mandiri is jointly owned by Bank Mandiri, which has a 51 percent stake, and Axa Group’s National Mutual International, which holds 49 percent.
