JAKARTA, September 1, 2016 – PT FWD Life Indonesia (FWD Life) and PT Bank KEB Hana Indonesia (KEB Hana Bank) today announced a strategic partnership to develop a bancassurance offering through the launch of bancassurance product FWD Infinite Link, single premium unit-linked for KEB Hana Bank customers. In addition, it also launch mortgage credit life product.
This bancassurance partnership is part of FWD Life’s strategy to expand its distribution channels to reach more Indonesians. The Indonesian Life Insurance Association (AAJI) in its life insurance industry performance report for Q4 2015 stated that the life insurance industry remained steadfast amid unfavorable economic conditions, as reflected in the total continuance premium growth of 12.9% from the same period in 2014. This shows stronger consumer trust and awareness on the importance of having long-term financial planning, not only provided by banking products but also investment and protection products.
FWD Life Indonesia President Director Rudi Kamdani said, “We are excited to partner with KEB Hana Bank, as we both share the same values to always prioritizing our customers’ interests and satisfaction (customer-led approach) in providing products and services that can cater to customers’ needs.”
Furthermore, Rudi also explained that the partnership provides an opportunity for FWD Life to develop its bancassurance distribution channel. “FWD Infinite Link is our innovation to assist the public in preparing financial stability in the future and securing personal protection. Through this partnership. Through this partnership, FWD Life is able to expand our distribution reach, which in turn will support our aspiration to reach one million Indonesians by 2017.”
Lee Hwa Soo, KEB Hana Bank President Director said, “The partnership with FWD Life through FWD Infinite Link will strengthen our bancassurance product options, as well as expand access to scores of financial products and services in accordance with customers’ risk appetite and needs. This is in line with KEB Hana Bank’s commitment to assist customers in protecting their assets and long-term investment returns, allowing customers to live their life according to their passion.” He further added, “Our tie-up with FWD Life will also provide more bancassurance products, especially for our Priority Banking customers.”
This partnership comes together at the perfect time, as the Indonesian economy regains its strength and the middle-class and upper-middle class continue to grow year to year. The Central Bureau of Statistics (BPS) data showed that the Indonesian economy grew 5.18 percent in Q2 2016, an increase from the growth of the previous quarter (Q-on-Q) of 4.91 percent, which exceeded many analysts’ expectations. The national economy’s growth in the first half of 2016 was pegged at 5.04 percent, also exceeded the economic growth in Q2 2015 of only 4.66 percent.
FWD Infinite Link Product Offers Competitive Advantages
FWD Infinite Link is a single premium unit-linked product providing life and death insurance benefits and optimal investment return with minimum premium of Rp 100 million. The product offers a number of attractive advantages to KEB Hana Bank customers. One of which is 100% single premium allocation into investment with a loyalty bonus of between 1-3 percent of the average investment value at the end of the seventh policy anniversary and every 5th year thereafter.
FWD Infinite Link product provides two investment options; First, FWD World Equity Fund, a long-term investment through investment in equity funds that gives exposure to both onshore and offshore equity market. Secondly, the FWD Asia Fixed Income Fund investment option which offers investment portfolio allocation in bond market traded domestically and on bond market in Asia, with the exception of Japan.
Moreover, customers are given the flexibility of making withdrawals, transfers and top-ups, as well as the ease of choosing and altering investment fund allocations. FWD Infinite Link customers will be entitled to life insurance protection up to 100 years of age with death and accidental death benefits.
KEB Hana Bank Funding and Wealth Management Business Division Head, Gempur Eskandaru Widansyah said, “We are pleased to be able to partner with FWD Life and we are targeting to receive more fee-based income this year from bancassurance business after securing deals with several insurance companies. Besides, the partnership with FWD Life also reflects KEB Hana Bank’s commitment to consumer banking and wealth management segment as well as achieve the company’s vision to become Top 20 banks in Indonesia by 2020."
On the same occasion, FWD Life Chief of Partnership Distribution Anggi Sangadi said that the partnership with KEB Hana Bank will expand the company’s reach to the public in socializing the importance of insurance and significantly widen the bancassurance network in Indonesia. “Expanding the bancassurance distribution channel to obtain a wider reach is one of our priorities, and we are proud to be able to form this partnership with KEB Hana Bank. Through FWD Infinite Link product, we are offering protection and optimal investment return for KEB Hana customers. In addition to FWD Infinite Link, we also offering mortgage credit life product. We fervently hope that this partnership will be able to bring the two companies together in a shared vision and commitment to provide the best service in its class. Moving forward, we hope to be able to continue developing a solid and successful partnership with KEB Hana Bank,” Anggi concluded.