The first Islamic microinsurance products

Germany, January, 31 2008 - After an 18-month pilot, microinsurance products are now an established product line of Allianz in Indonesia. New features, such as policies compliant with Islamic law and co-insurance for spouses, as well as a new distribution concept make the products more flexible and accessible for customers.

Since August 2006, Allianz has been offering microinsurance products in Indonesia. Following this successful pilot phase, these products are now well established. As of today, January 31, 2008, the microcredit insurance "Payung Keluarga" (meaning "Family Umbrella") is now featuring extended options and will be permanently included in the product portfolio of Allianz in Indonesia.

"We are the first international insurer to offer a microinsurance product that complies with Islamic law," says Jens Reisch, CEO of Allianz Life Indonesia. Allianz has already been offering Takaful insurance products in Indonesia, which incorporate the principles of Islamic finance law, since April 2006. Now it is introducing a microinsurance version of the Takaful policies, specially tailored to meet the needs of customers with low incomes. "The majority of the Indonesian population is Muslim, so ensuring that the products they buy do not go against the principles of the Koran is an important consideration for many," says Reisch, "and that applies to potential microinsurance customers, too."

Another new feature of "Family Umbrella" policies is the opportunity for policyholders to co-insure their spouse. If they do, the family is insured not only in the event of the death of the loan taker – 90 percent of whom are women who have their own small businesses – but also if the spouse, often the main wage earner, should die.