Indonesia: Ideal to have 1 mln agents to serve a population of 250 mln
Source: Asia Insurance Review | Apr 2018
Indonesia Agents/Advisors
The potential of the agency distribution channel is huge, said the Indonesian Life Insurance Association (AAJI) which has pointed out that the total population of Indonesia which exceeds 250 million would ideally require one million agents to serve it.
There is room to grow, because at the end of March 2017, there were about 560,000 agents, AAJI told the publication Kontan.
AAJI Executive Director Togar Pasaribu said the agency channel’s prospects will remain good as agents will be needed by life insurers and by the public. In addition, the country’s low insurance penetration rate is also an indicator of the need for agents to serve potential customers who live in remote areas.
He said that some life insurers have already entered Tier 2 and 3 cities in Indonesia, rather than restricting themselves to Tier 1 cities.
Mr Togar said: “The ‘10 million future agents’ programme that AAJI is currently implementing with its members, has reached nearly 50 sub-districts.” A