The Indonesian insurance industry introduced the new product label the Link Unit to the market. This newest variant could it was hoped boost up the national insurance market share that up to now is not yet so significant. The unit link was the blend between the insurance and long-term investment. Be enough by buying one policy of the insurance, the customer could invest at the same time becoming participants in the insurance.
The protection that was given could take the form of the life insurance and the health insurance. The insurance company managed personally the insurance fund, whereas the investment fund was managed fully by Manager investment by using the system of management investment mutual funds. This product continued to experience the fast development and to have an interest taken in him by the community. The Asosiation data of the Indonesian Life Insurance (AAJI) the first semester 2007 mentioned, from the total income of the life insurance premium, 33.3% him came from the holder of the policy of the unit link. The number of companies that offered this product then continued to increase.
Uniqness the unit link was located in the long-term investment opportunity that was offered. Moreover when the level of the interest descends as it is now, the community that uptil now relied on the fixed deposit flower began to look for the alternative to other investment like the share and the debenture. The presence of the unit link became the exact solution for the investor who gave priority to the aspect of the protection of the spirit and the wealth.
Moreover, capital of investment through the unit link not of capital that must be spent for direct investment in mutual funds or the money market. The customer could then choose the investment kind that most in accordance with himself.
However that must be paid attention to in the unit insurance link was larger the value and investment of the protection that also was bisected from the total premium. When expecting the total protection, certainly to be more exact chose the traditional insurance without investment details. Moreover, access of investment information that was owned by the unit customer link not measuring the investing investor direct in mutual funds.
These limitations certainly did not reduce the superiority of the unit link. Moreover return that could be met better than the fixed deposit flower. It is not surprising if the unit market share link continued to grow.
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