Indonesia’s life insurance industry is struggling to expand, not because of a lack of opportunity, but due to deep-rooted public distrust. Lauren Sulistiawati, CEO of PT Asuransi Jiwa Manulife Indonesia, believes that until the industry earns the confidence of its people, growth will remain stagnant.
“Life insurance is a long-term commitment,” Sulistiawati said in a Microsoft Teams interview with Insurance Asia. “There’s fear about whether the company will still be there when the time comes to claim the policy.” That fear, she emphasized, is the single biggest barrier to policy sales.
Instead of competing over a limited customer base, Sulistiawati urged players in the industry to expand the overall market. “The challenge is how to make the pie bigger instead of just fighting over the same size of pie,” she noted.
Insurance Penetration Still Low
Indonesia’s life insurance penetration stood at just 1.39% of GDP in 2022, among the lowest in the region. While the 2024 numbers are expected to change slightly, Sulistiawati admits, “Whether it’s 2.5%, 1.5%—the silver lining is that it’s low, so we have to do more to expand it.”
Education Over Empty Promises
To address this gap, Sulistiawati called for unified action by insurers and the Life Insurance Association of Indonesia to educate the public. “Do the people we want to sell our products to know that Manulife is different? They don’t,” she acknowledged.
Transparency about governance and financial health must be the norm. Although proposals for a government-backed guarantee scheme are being discussed, Sulistiawati says these are likely years away. “Until then, all parties need to play a role in giving customers more confidence,” she insisted.
Banking Mindset for Insurance Success
Drawing from her 20+ years in banking at institutions like Citigroup, Permata Bank, and Commonwealth Bank (now OCBC), Sulistiawati plans to apply a “customer obsession” mindset to insurance.
She noted that customers at different income levels—even if going through the same life stage—have unique needs. “The products that matter to each group will be very different,” she explained.
Digitalisation Isn’t Enough Without Trust
While many insurers have focused on efficiency and digital processes, Sulistiawati warned that technology alone won’t fix the trust deficit. “It’s not only about having the best process or the most digitalised process,” she said. “It’s about giving the best solution to the customer.”
Slow to React to Economic Shifts
Sulistiawati also criticized the industry’s sluggish response to economic and geopolitical shifts. Unlike banks, the insurance sector lacks urgency when such risks arise—something she sees as a critical shortfall.
Balancing Social Impact and Business Goals
Though she champions financial literacy and inclusion, Sulistiawati acknowledged that business results still matter. “We have stakeholders who expect bottom-line results,” she said. In 2023, Manulife Indonesia’s net income soared to $113.5 million (IDR1.84 trillion), more than quadrupling from the previous year.
For Sulistiawati, the message is clear: the industry must work together to build trust before it can grow.
