Choosing the appropriate insurance is a fundamental step in securing optimal financial protection. However, before deliberating on insurance products, it is important to know how to choose a reputable insurance company first. Here are some important points to consider:
1. Reputation and Performance
The standing and performance of an insurance company are key indicators in assessing its credibility. Evaluate the company’s track record and performance in serving its clients over recent years. Is the company’s comprehensive income positive and is the Risk-Based Capital (RBC) greater than the mandated 120%? RBC serves as a benchmark for the company’s capital ability to meet its obligations. Additionally, ensure that the insurance company is registered and supervised by the Financial Services Authority (OJK).
2. License and Legality
Verify that the insurance agent holds an official license issued by the Indonesian Life Insurance Association (AAJI) or the Indonesian General Insurance Association (AAUI). This certification ensures that the agent complies with the professional ethical standards established by the insurance industry.
3. Guarantee Fund
A reputable insurance company should maintain a guarantee fund to safeguard policyholders and participants. This fund acts as a reserve that can be used by the company to fulfill client obligations, particularly in emergency situations. The guarantee fund also serves as a benchmark for the company’s financial robustness and is subject to specific regulations:
- The company is obligated to establish a Guarantee Fund of at least 20% of the minimum required Equity
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The amount of the Guarantee Fund must be adjusted based on the company’s
business volume, in accordance with the following provisions:
- Life Insurance Company: it is mandated to establish a Guarantee Fund comprising 2% of reserves for PAYDI (insurance linked to investment or unit-linked) in addition to 5% (five percent) of premium reserves for products other PAYDI and reserves for premiums that have not yet generate income; and
- General Insurance Companies and Reinsurance Companies: it is obligatory to establish a Guarantee Fund consisting of 1% of Net Premiums, 0.25% of reinsurance premiums, and 2% of reserves on PAYDI.
This Guarantee Fund is customarily disclosed in the official financial
statements, which are publicly available through the insurance company’s
website.
4. Ensuring High-Quality After-Sales Service
Given the lengthy insurance coverage period, it is essential to evaluate the quality of the after-sales service. After-sales services should include the following:
- A procedural system to ensure that customers receive their insurance policy, including the option for an e-Policy.
- Systems to ensure that product explanations by marketers are accurate and understandable for customers.
- A customer-friendly system that allows easy access to the company’s services, particularly regarding claims.
- Provision of customer service/after-sales services that are easily accessible and can be followed up through various communication channels, such as telephone, online platforms, other digital media, or branch offices. Responsive and professional services will instill a sense of security and reassurance among policyholders.
5. Quality Insurance Products Tailored to Specific Needs
Before purchasing an insurance product, it is crucial to have a comprehensive understanding of the benefits, additional features, and cost of the insurance product in question. This ensures that the product you are buying aligns with your specific needs and financial situation.
6. Ease of Administration Process
Select an insurance company that offers an efficient administrative process for paying insurance benefits, such as cashless or reimbursement systems.
By considering the points above, you can choose an insurance provider and an appropriate product to safeguard your finances and family from unforeseen risks.
PT Asuransi Jiwa BCA (BCA Life) is a life insurance company within the BCA group, operating under the supervision of the Financial Services Authority. BCA Life maintains a robust financial position, with a solvency coverage ratio (RBC) of 436.6% as of December 2023. By early 2024, BCA Life had acquired a customer base of 454,968 insured individuals, experiencing a 15% year-on-year increase in claim payments.
BCA and BCA Life have collaborated to introduce the BCA Life Heritage Protection, a life protection solution designed to provide financial security for families in the event of the insured’s passing. This product offers six primary benefits:
- Sum Assured of up toRp300 billion and protection up to 99 years
- Terminal Illness Benefit, providing 20% of the Sum Assured or a maximum of Rp3 billion upon diagnosis of a terminal illness.
- Additional Sum Assured, with the Sum Assured increasing over time (value not guaranteed)
- Policy Loan, allowing for a loan of up to 80% of the Guaranteed Cash Value
- Definite Policy Redemption Value, in line with the Guaranteed Cash Value with any additional Extra Additional Sum Assured Value, if applicable.
- Certainty of Payment Period, available as a lump sum or periodically (5 years, 10 years, 15 years, up to 20 years)
Furthermore, BCA Life ensures the availability of 24-hr customer service to address customer needs effectively. For further details, please visit the nearest BCA Branch or click here!