BNI combines insurance with investment products

BNI is expecting to earn more from its bancassurance business with new deals from several insurance companies.

Bank Negara Indonesia recently signed agreements with its subsidiary PT BNI Life Insurance, PT Asuransi Jiwa Sequis Life, PT Asuransi Cigna and PT AIA Financial. Under the agreements, BNI would sell the insurance products from those companies from its branches across the nation.

The insurance products are Medicallinq from Sequis Life, AIA Ekskutif Link, CIGNA Dynamic Click and BLife Maksima.

“We want to have more products, especially for our priority customers. This year, we will put in insurance products that are combined with investment instruments,” BNI commercial and retail director Darmadi Sutanto said.

“In the future, we may add treasury products.”

BNI expected a total of US$21.8 million in premiums would be collected this year, particularly from the company’s priority banking customers, with a fee-based income of around Rp 17 billion.

We prioritize customers holding Emerald-priority banking. When the business runs smoothly,
we will widen the target,” said BNI’s vice president for wealth management and investment, Teddy Atmadja.

Teddy said BNI expected that between 750 and 1,000 of its total priority banking customers would purchase some sort of bancassurance product.

"Fee-based income is not our main focus. The most important thing is that the selling process has met requirements,” Teddy said.

BNI Life president director Junaedy Ganie said that his company expected a 70 percent increase in total premiums to Rp 1.9 trillion this year, from Rp 1.1 trillion booked in last year.

“The bancassurance is expected to contribute around 51 percent this year,” Junaedy said, adding that the business contributed to 42 percent to total premiums the company gained last year.

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