CIMB Niaga offers life insurance products

JAKARTA: CIMB Niaga Bank, the country's fifth largest bank in terms of assets, has expanded its business by involving life and general insurance companies to attract more customers.

Working together with Sun Life Financial, CIMB Niaga already launched CIMB Sun Life. This joint venture was agreed four months ago by the two companies and will be the major provider of life, accident and health insurance products and services to CIMB Niaga, which has 2.5 million customers and 655 retail branches nationwide.

"We are aiming to earn Rp 1 trillion *US$100.5 million* in premiums for the next five years," CIMB Sun Life president director Vivien Kusumowardhani told a group of journalists Tuesday.

While total market penetration for life insurance remains at a mere 3 percent, Vivien expressed her confidence that her company would be able to reach the target. "The main barrier is to educate the public on the necessity of having insurance. Indonesia is far behind our neighboring countries in terms of life insurance market penetration."

CIMB Niaga president director Arwin Rasyid hoped that the cooperation would triple income from the bank facilitating sales of insurance services. "Last year, our income from bancassurance *after the merger of Niaga and Lippo* reached Rp 80 billion. So we hope our income *from this source* will triple this year," he said. - JP