Prudential Intensifies Focus on Agency Development

Jakarta — Amidst the fervent drive by insurance companies to boost premium revenue through bancassurance partnerships, PT Prudential Life Assurance (Prudential Indonesia) remains steadfast in its commitment to bolster its business through agency channels. “I believe it’s fair game because each company has its own strategy to expand its business,” remarked Rinaldi Mudahar, President Director of Prudential Indonesia in Jakarta, on Tuesday (2/12/2014). This stance underscores Prudential Indonesia’s robust agency distribution network compared to other insurers. In fact, according to data from the Indonesian Life Insurance Association (AAJI), the number of insurance agents totaled 375,000 individuals in the second quarter of 2014. During the same period, Prudential Indonesia boasted over 200,000 certified agents. Consequently, Mudahar emphasized their commitment to enhancing the quality and quantity of their agents. One example is Prudential Indonesia’s requirement for agents to spend at least one day a week in the office. “The rule mandating agents to be in the office is to instill discipline among them. Additionally, every week, we conduct training sessions to enhance their knowledge and skills,” added Mudahar. Moreover, Mudahar highlighted that the agency distribution channel aligns well with Indonesia’s archipelagic nature. Furthermore, given the relatively low insurance penetration compared to neighboring Asian countries, he emphasized the crucial role of agents in providing comprehensive financial planning knowledge to clients. Although not the primary distribution channel, Prudential Indonesia also maintains partnerships with at least five banks, including Bank International Indonesia (BII).