Commonly, customers categorized as high net worth (HNW) possess financial wellness and make significant contributions to business growth, including the insurance industry. They include business owners and executives.

According to the outcomes of a 2020 study by AIA and Ernst & Young (EY), the Asia-Pacific region has the largest number of HNW individuals in the world. According to Wealth-X’s High Net Worth Handbook 2019, the HNW population in the Asia-Pacific will continue to grow from 2.6 million to 8.7 million in 2023.

As a result, the demand for life protection products has seen a sharp jump in line with the rising demand in the premium segment for wealth protection and legacy planning.

“As a life insurance company that has long focused on developing products for the premium segment, we proudly announce the AIA Platinum Legacy product to meet the need of customers, especially business owners and professional executives, for life protection to leave behind a better legacy for the next generation,” AIA chief marketing officer Kathryn Parapak said on Monday, following the launch of the new product.

“Our internal data shows that on average, our HNW customer segment has more than three policies and their need for protection is increasing in line with the phases of their life,” she continued.

“In designing the product, we also gave much attention to protection benefits. For that reason, we have also maximally designed AIA’s sum insured, which is one of the highest [amounts] in the industry.”

Expounding on AIA’s development strategy, she revealed that HNW customers with financial wellness needed diversified investment instruments.

“In insurance, value increase is effective from day one. The Platinum Legacy product helps them plan their legacy for the next generation,” she added.

AIA Platinum Legacy is also supported by the company’s partnership with professional agents including from the Million Dollar Roundtable (MDRT), who are trusted by premium customers.

“MDRT agents have high-quality marketing and sales services that have successfully driven many customers to have more than one policy, which boosts our business,” she said.

“The research also shows the complexities around legacies. In terms of business continuity, for example, only 30 percent of business owners bequeath their business to their offspring. So, the Platinum Legacy is expected to help business owners plan their legacies well.”

AIA is currently marketing its AIA Platinum Legacy product to HNW customers through its MDRT agents. “We are confident of reaching the target market because our MDRT agents have established a large network of high-end customers,” said Kathryn.

Its long-standing focus on the HNW segment through supporting with MDRT agents is among AIA’s strengths, and the company has determined that this partnership is the right channel for introducing the AIA Platinum Legacy.

AIA Platinum Legacy offers five primary value propositions.

First is maximal protection value with the sum insured increasing 20 percent every five years without additional underwriting.

“This allows [a customer’s] sum insured to increase to double the value of your initial sum insured, which will help with your legacy planning. For example, if your initial sum insured was Rp 5 billion, then the sum insured will increase 20 percent every 5 years up to  Rp10 billion in 25 years,” said Kathryn.Second is ease of application, which exempts health checks for customers with a sum insured of Rp 15 billion.

Third is a short premium payment period. Usually, insurance customers make premium payments 10 times over 10 years or more. But with Platinum Legacy, customers can make their premium payments just once or twice, depending on their financial condition.

“It is undeniable that the business cycle experiences ups and downs. With AIA Platinum Legacy, customers can pay just once when business is booming, which means they can make a single legacy planning payment for the rest of their lives,” Kathryn noted.

Fourth, Platinum Legacy comes with an extra care benefit that provides a 50 percent advance of the sum insured in the event that a customer with valid protection suffers a critical illness and needs additional funds for treatment.

Fifth, the product comes with the complete AIA Vitality and Personal Medical Management plan to help customers live healthier, longer and better lives.

“At AIA, we not only care about better legacy planning for customers, but also support customers in leading healthier lives so they have more time to spend with their families,” said Kathryn.

The AIA Vitality health and wellbeing program adopts a shared value model that benefits all customers, not just HNW customers.

“Customers who conduct health activities every week through the Vitality application earn reward points. When the customers reach a certain level, they deserve to get cash back from AIA, with the amount depending on the product and level [attained],” she added.

More customers getting cashback rewards means that more people are reducing their health risks and becoming healthier. “This will be followed by a potential decline in claims. So, the program offers a win-win solution,” Kathryn underlined.

“Since the launch of the first ever AIA Vitality [program] in 2021, we have continued to focus on introducing the initiative to the greater public by integrating it into our life insurance products. AIA Vitality perfectly complements AIA Platinum Legacy, because we believe that a legacy is not just wealth, but also health,” she said.

“We hope that with AIA Vitality, customers can lead better lives that allow them to spend more quality time with their loved ones, and also offer more opportunities to bequeath better values to their offspring.”

“We [also] hope that our customers welcome AIA Platinum Legacy, because it is a solution to increasing asset allocation to reach a legacy goal,” said Kathryn.

AIA launched AIA Platinum Legacy on the back of robust performance, reaffirming its position as a leading life insurance company in Indonesia.

AIA’s data on its 2021 financial performance showed that it experienced strong growth with Rp 55 trillion in managed assets and Rp 50 trillion in total investment assets.

The company booked revenue totaling Rp 15.9 trillion and paid Rp 11.49 trillion in claims, reflecting its primary commitment to be the most reliable life insurance company in Indonesia.

AIA achieved a solvency ratio of 660 percent, far above the government’s mandated solvency ratio of 120 percent, proving its financial soundness.

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