STRATEGIC IMPLEMENTATIONS IN INDONESIAN BANCASSURANCE MARKET: A CASE STUDY OF PT. ASURANSI CIGNA

Abstract

In bancassurance department, PT. Asuransi Cigna has been able to maintain its market standing despite the tough competition. This research aims to find out the factors that influence the company’s market position and the contributing factors behind the company’s strategic implementations, and also to discover the company’s strategic implementations in the near future to increase or maintain its position. Through this research, it is hoped that PT. Asuransi Cigna could also gain new insights regarding their company in bancassurance industry. The researcher conducts an interview with a representative of PT. Asuransi Cigna in order to gain valid and reliable primary data. This period covered in this research ranges from 2010-2013 and is limited from PT. Asuransi Cigna’s point of view. It is discovered that one of the largest threats in Indonesian bancassurance industry is the exclusive agreements between banks and insurers. Although the government has made a regulation regarding partnerships in bancassurance, the parties involved in these exclusive agreements are still able to conduct practices which could hinder other companies’ progress. This research suggests that the Indonesian government should review its regulations regarding partnerships in bancassurance, and for PT. Asuransi Cigna to gain more partners in banking and multifinance industries; and to consider finding a way to be the priority partner in their partnerships with banks.