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Bancassurance sales to double after Sun Life merges with CIMB unit
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Sun Life Financial Indonesia president director Elin Waty (left) and education expert Arief Rahman share a light moment after the launch of a children's encyclopedia on insurance at the Sun Life Edufair at Senayan City mall in Jakarta on Thursday. (JP/DMR)
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usiness integration between Sun Life Indonesia and a subsidiary of Malaysian financial group CIMB, CIMB Sun Life, will double the sales of bancassurance in the Canadian life insurance company to about 40 percent from 20 percent.
Bancassurance is a partnership between a bank and an insurance company to use the lender’s offices to sell insurance products to its clients.
Sun Life Financial Indonesia president director Elin Waty explained before the start of the business integration, the contribution of insurance agents to the premium sales was between 75 and 80 percent, while the remainder came from bancassurance.
"Following the integration, the contribution of insurance agents and bancassurance will be 60 percent and 40 percent, respectively. In the future, we expect the contribution will be an equal 50 percent," Elin told reporters in Jakarta on Thursday.
She further explained that the integration would also create total assets of Rp 9.14 trillion, comprising Rp 6.7 trillion worth of assets from Sun Life and Rp 2.4 trillion from CIMB Sun Life. "With this integration, we are integrating management in the two companies. This will automatically strengthen us both," Elin said.
The merger will strengthen Sun Life Financial's commitment to invest US$40 million to increase its online penetration and strengthen its brand presence in Indonesia. (ags)
