STRATEGY TO INCREASE BANCASSURANCE SALES IN PT ASTRA AVIVA LIFE

• Main Author: Mudita Kusumawati, Ivana
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/47495
• Institution: Institut Teknologi Bandung

Astralife have strategic partnership with Permata Bank. The sales contribute ~80% of total company achievement. Starting 2017, Bancassurance channel didn’t achieve its expected financial target and directly impact to company overall achievement. The objective of this research is to increase sales in Bancassurance channel by introducing new product for Permata Bank’s customers and the create the implementation plan for the company. Seven P’s Service Marketing mix has been used to analyse the situation and identify the root cause, and it has been found that Bancassurance channel needs to be optimized by not only focus to sell unit link to priority customer segment (only 5% of total Bank’s customer), while more than 95% potential customer segment is remain untapped. High distribution cost for unit link product makes this product difficult to be offered to lower customer segment. Diamond Strategy model from Hambrick and Fredricson, also have been used to define suitable growth strategy to achieve sustainable performance in the future. The recommendation for company to sell new protection product for Permata Bank’s customer, with guaranteed premium return and optimum insurance protection with lower premium rate. By empower Bank’s Customer Services to offer insurance to customer product distribution cost can be lower than unit link product due to efficient commission structure.