TEMPO.CO, Jakarta - Director and CEO of Life insurer Manulife Indonesia, Ryan Charland, on Wednesday expressed optimism that his firm will be able to maintain positive financial performance in 2020 despite the negative effects of the coronavirus (COVID-19) pandemic looming over the life insurance industry.
The director’s written statement assured that the company “believes that the business growth can record healthy investment returns.” He also noted that Manulife Indonesia is optimistic that it will overcome future challenges with the company’s assets in the form of overabundance product distribution, pension fund businesses, and strong management over the plethora of assets.
According to Ryan Charland, up to May 8th, Manulife Indonesia was able to fulfill insurance payment claims related to COVID-19 that amounts to a total of Rp4.6 billion.
Prior to the coronavirus-infested 2020, Manulife Indonesia reportedly posted a net income of Rp12.7 trillion in 2019, which is 11 percent growth compared to 2018. In 2019, the company also generated net investment income of Rp3.1 trillion over the Rp1 trillion they generated in 2018.
Insurance industry observer Maryoso Sumaryono predicts that the COVID-19 pandemic will see the life insurance industry face a 10-20 percent negative movement until the end of 2020. However, he believes that life insurance remains to be the public’s top priority as it has turned into a necessity during the crisis.
Separately, the Financial Services Authority (OJK) board of commissioner chair Wimboh Santoso said that March 2020 saw the life insurance industry corrected by 13.8 percent YoY. Which is lower than the initial prediction of minus 0.38 percent.