Mr Wiroyo Karsono, joint chairman of the Indonesian Life Insurance Association (AAJI) and also CEO of Bhinneka Life, has said that working in the insurance industry currently does not rank high in the minds of millenials.
According to a report by SindoNews, he said at an insurance leaders' conference over the weekend, "It is our duty together to make insurance companies big and sexy so that they attract millennials' interest in the insurance industry.”
He also said, “It is difficult to get the best talent because millennials still do not make working in life insurance their top choice.”
Commissions seen as excessive
Another speaker, Executive Director of the Indonesian General Insurance Association (AAUI), Mr Dody Dalimunthe said that AAUI and AAJI are planning to cut agents' commissions which are deemed to be “too high” and have eroded insurers' bottomlines.
He said, "Insurance companies' profit margin is only 1.5% because agent commissions are excessive. Therefore, we will arrange it so that commissions are not too much. We ask for the commitment of CEOs of insurance companies in the AAUI and AAJI."
He further said the life and general insurance sectors must be willing to overhaul the old system. One shortcoming is the lack of transparency. This is a major weakness that keeps insurance penetration in Indonesia low, he said.