The Jakarta Post
State-owned lender PT Bank Tabungan Negara (BTN) and insurance company PT Generali Indonesia launched on Wednesday an insurance product for mortgage customers.
Speaking during the launch of the Generali-Protection (G-PRO), BTN director Dasuki Amsir said the new product was introduced to provide life insurance to BTN mortgage customers, with an insurance premium of 1.5 percent of the monthly installment.
With the insurance, beneficiaries who suffer from serious illnesses like cancer, stroke or coma will receive an allowance of six times the monthly installment, while relatives of those who have passed away will receive an allowance of 12 times the monthly installment.
G-PRO serves as a complementary insurance product in addition to the mandatory life insurance that comes along with the mortgage program, Dasuki said, adding that BTN now had a total of 15 bancassurance products.
He said with the introduction of more bancassurance products, BTN wanted to jack up its fee-based income.
“The bank currently still relies on interest income, which currently contributes 90 percent of the bank's total revenue, while fee-based income only contributes less than 10 percent,” he said, adding that the bank was looking to increase the contribution of fee-based income to 26.7 percent of total revenue, or about Rp 52 billion (US$ 3.8 million), this year.
He said BTN and Generali saw mortgage as a promising sector as the number of customers grew rapidly in line with the rapid growth in the property sector. G-PRO is the third insurance product jointly launched by Generali Indonesia and BTN. (roi/bbn)