PT Asuransi Jiwasraya (Persero) has operated in the Indonesian insurance market for 151 years, adapting to the changing needs of its millions of clients through this time, but maintaining the core focus of high customer satisfaction.
Of course, many insurance companies – both local and foreign – have been drawn to Indonesia because of its high growth potential in the century and a half since Jiwasraya’s inception. Today the market is very competitive: companies are offering many new products, highly customised to the increasingly diverse needs and capabilities of policyholders.
This has only motivated Jiwasraya to improve its quality of service. The company has identified four key themes to develop in promoting its brand to potential clients:
– Product development – highlighting the work done by Jiwasraya’s research and development team to create new products and review existing products, ensuring they are carefully tailored to fulfil the needs of its clients;
– Pricing – demonstrating Jiwasraya’s competitiveness;
– Promotion – proving that Jiwasraya can be trusted as a good financial planner;
– Distribution – developing a comprehensive distribution network to achieve close proximity to existing and potential clients.
Results so far have been very positive. Marketing programmes have been supported by the customer service unit since 2009, for easier and faster access to information in addressing customers’ problems and complaints.
This was a key driving force in increasing new customer acquisition, helping premium income reach IDR 3,613trn ($230bn) in 2010.
The investment sector – the foundation of the company’s operations – also performed well, with optimisation of the company’s bond portfolio helping to improve performance. As a result of this the company’s investment programmes are now easier to monitor, thus minimising fluctuation. Jiwasraya’s return on investments was IDR 669.5trn ($78bn) in 2010, and overall net profit reached IDR 204.5trn ($24.0bn) in 2010.
Product innovation
In today’s insurance industry there has been a shift away from traditional insurance plans towards unit linked plans. However, with more and more competitors using the same mechanism, Jiwasraya has differentiated itself by giving added value to its customers, and offering more profitable value to potential customers.
In 2009 Jiwasraya launched its feature product JS Link, a unit linked plan which offers safety and profitability.
The main advantages of the unit link are maximum protection for the client with high coverage value, and flexible premium payments that can be customised to the customer’s requirements.
Jiwasraya was the first company in Indonesia to offer education insurance. These products are designed to fulfil parents’ various needs in financially planning for the education of their children.
In the corporate sector, Jiwasraya is aware that employees are important assets – and that every employee has unique needs to be fulfilled. The need to provide for employees’ productivity, welfare and health, as well as continuity of income for employees and their families when they enter the age of retirement is increasingly seen as part of organisations’ social responsibilities.
To provide convenience for companies to deal with such situations, Jiwasraya’s corporate insurance plan can be customised according to the needs and capability of the company’s clients.
Its JS Siharta product is a programme for old age welfare, including old age fund benefit, funeral compensation, accidental disability benefit and accidentally hospitalisation benefit.
The company’s health insurance product is designed to fulfil a company’s needs in risk aversion of employee health costs. Jiwasraya helps manage the appropriate financial planning in order to secure the payment of insurance benefits for participants who suffer illness from a disease or accident.
A personal accident product provides benefits for accidental death; or if injured in an accident it provides compensation for hospitalisation, hospital inpatient costs, medication and disability benefit.
Marketing channels
An effective and broad distribution channel is the most important aspect of marketing. Jiwasraya has established a comprehensive distribution network and area offices in many major cities. There are 17 regional offices, 71 branch offices and 382 area offices throughout the country, reaching even the remotest areas.
To improve its performance, Jiwasraya has adopted three tactical measures: it has increased the number and persistence of agents with high productivity and production qualities; restructured its marketing centres into regional offices; and expanded its channels by using several systems such as general agency systems, telemarketing and bancassurance.
Jiwasraya marketers receive professional training at recruitment and throughout their work with the company, developing professional and productive human resources where it matters.
Marketers’ pre-basic training provides a preliminary understanding of life insurance and the selling process; this is combined with licensed life insurance agent certification for marketers new to the industry.
Successful agents are then taught sales in greater depth, including presentation and negotiation skills, relationship management and effective telephone techniques; as well as useful office and management skills such as working as a team, prioritisation and managing conflict.
A supervisory development programme is also available for career development, with training as diverse as financial management, marketing management, problem solving and decision making, basic human resources, development management, and effective leadership.
Human resources management
Jiwasraya believes that human resources are the main factor in the success of every company, and that it is therefore important for the company to provide aspiration, satisfaction and comfort for its employees.
In 2011 Jiwasraya’s human resources division determined a new direction for the company to help it provide the best for its personnel. Jiwasraya now positions itself as a strategic partner for its employees, providing training and development, compensation and reward schemes, and career planning assistance.
To help its employees achieve optimal performance, Jiwasraya implemented a performance management system – identifying key performance targets encompassing financials, business processes, customer service, competence and innovation.
Comprehensive training programmes help employees realise their objectives in line with the company’s vision, mission and strategy. For its supporting unit, general training is delivered through seminars, workshops and conferences; while subject specific training includes areas such as database management and basic underwriting.
Social responsibilities
As a demonstration of its commitment to the environment, Jiwasraya has allocated funds to a Partnership and Community Development Programme. These funds have been distributed to eight provinces across the nation to 37 trading sectors and 25 other sectors, including service, fishery, farming, agriculture and plantations.
By assisting its foster partners, Jiwasraya hopes to contribute to the welfare of the Indonesian community, as well as securing a sustainable environment and continued growth.
Today, more than 3.4m customers have trusted their future to PT Asuransi Jiwasraya (Persero). The company is aware that trust is a virtue that should be upheld to maintain good relation with customers in providing appropriate financial advice and solutions.
