The Factors of Salesperson’s Behavior in Buying Life-Insurance Based on Different Consumers’ Perception
A. The Trend of Life-Insurance in Indonesia
The promising growth opportunities in the Indonesian insurance market continue to attract new players, despite certain unfavorable government rules and regulations. The industry has registered a tremendous growth in the past few years, mainly due to untimely occurrence of natural and man-made disasters, launch of new products, growing economy and increasing demand for savings. Like many other countries, the Indonesian insurance industry can be categorized into two different segments: life and non-life. Life insurance is the dominate segment in the Indonesian insurance industry, with 68.3% share of total insurance premium in 2008.
In this report, the writers will focus only on life insurance. Life Insurance consists of insurance enterprises which specifically handle the risk of death, accident, or sickness; also includes old age / future pensions for the insured party with an insurance value fixed and agreed to by the two parties included in the contract. Table 1 below shows the number of life insurance companies in Indonesia from 2005-2009. The total number of companies during these periods actually decreases about 10%. However, despite of the decreasing number of life insurance companies, the new business premium (Figure 1) achieves a significant growth during these periods. This shows that there is still a lot of opportunity for expansion in this life insurance industry.
Table 1. Number of Life Insurance Companies in Indonesia
Figure 1. Indonesian Life Insurance Penetration
Regarding the trend of the life insurance in Indonesia, it is actually shifting from traditional insurance to unit link insurance. The point of turn actually started in 2007 (Figure 2). From that year forward, unit link insurance has been dominating the sales. In 2009, it even... [continues]
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