FWD Insurance Indonesia provides customer-friendly flagship product

Through innovative approaches, this insurance company achieved a net premium of  IDR1.88t (US$124.7m) in 2022.

FWD Insurance strives to reach a wider customer base by presenting product propositions that feature simple and easy-to-understand communications enabling customers to have a clearer understanding of the products and benefits offered. One such example is FWD Critical First Protection, which is delivered digitally and includes illustrated offers for sales to customers.

In Indonesia, insurance penetration and the funds invested in the insurance industry compared to Gross Domestic Product (GDP) remains low. Records from the Indonesian Life Insurance Association (AAJI) show that insurance penetration in 2022 accounted for only 1%, a decline from the previous year’s achievement of 1.2%.

The lack of understanding and awareness among the community regarding  insurance is considered one of the main factors contributing to this challenge.

In response, FWD Insurance has focused on innovating its products that make it easier for customers. “We want to answer this challenge by providing a fast and easy customer experience through digital Point of Sales (PoS), customer-focused services and engagement tools,” said Desy Natalia Widjaya, Director and Interim President Director of FWD Insurance Indonesia, in an interview with Insurance Asia.

“We also strive to present innovative and comprehensive products through various distribution channels,” she added.

Additionally, the insurance company acknowledges the shifting trends in traditional insurance products.

The AAJI’s data for Q1/2023 shows the contribution of traditional insurance products to the annualised premium equivalent (APE) increased to 76% from 64% in the previous period.

“The changes in the mix of traditional products with a focus on protection are particularly noticeable among  major companies in the life insurance industry,  where the majority of the top 10 life insurance companies already have more than 50% new business mix from traditional products,” she said.

Flagship product 
In 2022, FWD Insurance launched its flagship product, FWD Critical First Protection, which is a traditional insurance offering comprehensive protection that includes life, health and accident coverage.

It provides protection for the diagnosis of three main critical illnesses, hospital treatment, accidents, total permanent disability, and death.

The benefits it offers run up to 200% of the sum insured with the additional advantage of premium waiver and the choice of an insurance period of up to 100 years of age. Its advantages include flexible insurance periods of 65, 75, and 100 years.

This product stops premium payments after 50% of the sum insured is paid and covers claims for critical conditions caused by illness or accidents, not limited to specific diseases.

Also, customers do not need to worry if they never submit a claim, because the premium that has been paid will be returned 100%. The premium for this product is quite affordable, starting at IDR300,000 (US$19.86).

FWD Critical First Protection customers can also utilise the FWD Care Recovery Plan program, which provides post-claim support service by professionals who offer physical and mental recovery that varies from mental counseling services to home care assistance that customers and their family members can use without charge.

Prior to launching its flagship product, the company conducted a survey on public sentiment and expectations of current critical illness insurance products. The results of this survey was the basis for designing FWD Critical First Protection.

“One of the survey results stated that, generally, protection products against critical illness have an explanation of the benefits with various terms that are difficult for customers to understand, so they are reluctant to have it,” said Desy.

Various distribution channels
To ensure customer convenience, FWD Insurance has made its flagship products accessible through digital channels. So they introduced a FWD SMART application which enables insurance agents to create illustrations and offers to customers.

Additionally they offer Pintr, a learning and training application, as well as Iris, a personal digital voice assistant which offers up-to-date information to monitor activities and business.

All these can be accessed and used by FWD Insurance insurance agents. As of the first quarter of this year, Iris has reached more than 6,000 agents.

For customers who want direct access to FWD Insurance products, they can download the FWD Max application to view policy benefits, submit claims, and get various promos when purchasing insurance products.

With innovative products and distribution channels, FWD Insurance achieved a net premium income of IDR1.88 trillion (US$124.7 million) in an audited report which was published.  

Claims and benefits paid during that period amounted to IDR718.5 billion (US$47.6 million) and the solvency ratio of 362% surpassed the target set by the Financial Services Authority of 120%.

“We aspire to continue growing  as a life insurance company with a vision to change the way people feel about insurance,” said Desy.