COMPARISON OF

UNIT LINK PRODUCTS

IN INDONESIA
: STUDY OF INSURANCE AND UNIT LINK
PRODUCTS PERFORMANCE

Madiasta Sricista
19010084

BACKGROUND
Total Insurance Premiums in Indonesia 2012 by AAJI

# Economic growth in 2013 will reach up

to 6.5%
# Indonesia society level awareness of
insurance
# Growth potential of insurance industry,
47 %

53%

Total Premi from

Bancassurance

Total Premi from agency

force

especially Unit Total

Link
products
Insurance
Premiums in Indonesia QIII/2012 by SWA
# The bancanssurance business in
Indonesia is increasing
41%

59%

Premi Unit Link

Premi Traditional Insurance

OBJECTIVE
1. Performance analysis of Unit Link
products
2. Find the highest of investment benefits
in Unit Link products
3. Recommendation for policyholders on
choosing Unit Link

SCOPE & LIMITATION

This research use :

Primary data from each company which is

insurance illustration
Secondary data from books and
website as references
Historical monthly data from March
2011 to June 2013

DATA ANALYSIS
INSURANCE COVERAGE

Commonwe
alth Life

BNI Life

Axa
Mandiri

CIMB Sun
Life

Prudential
(as
benchmark
)

Product
Name

Investra
Equity Fund

BNI Dana
Maxima

Paid for
Total
Premium
(yearly)
Premium
Monthly
Administrati
on
Cost/yearly
Cost of
Insurance /
yearly

20 years

20 years

Sejatera
Mapan
Excellent
Equity
20 years

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

IDR
500,000

IDR
500,000

IDR
500,000

IDR
500,000

IDR
500,000

IDR
300,000

IDR
180,000

IDR
360,000

IDR
360,000

IDR
330,000

IDR
565,044

IDR
525,000

IDR
241,000

IDR
513,000

IDR
615,000

CSL Link
Ekuitas

PruLink
Equity Fund

20 years

20 years

INSURANCE COVERAGE
No

CIMB
Sun Life

Prudenti
al (as
benchm
ark)

Axa
Mandiri
Sejahtera
Mapan

CSL X-Tra
Optima

PruLink
Assuranc
e Account
Plus

Life
COMM
Blife
Protectio
Waiver if
Rider if
n if
injured
injured
injured
one of 53
one of
one of 34
critical
36 critical
critical
illnesses
illness
illnesses

CSL
Critical
Care if
injured
one of 44
critical
illnesses

Pru Payor
33 if
injured
one of 33
critical
illnesses

Covered
aged 99

Covered
aged 88

Covered
aged 99

Common
wealth
Life

BNI Life

Axa
Mandiri

Investra
Death
Basic
Coverage
Insurance

B-Life
Plan
Multipro

Item

Premium
Exemptio
n

The age
of died
covered

Covered
aged 80

Covered
aged 80

INVESTMENT SCOPE

estment Allocations in Insurance Policy

Investme
nt
Allocatio
n Year

AXA MANDIRI

BNI LIFE

CIMB SUN
LIFE

COMMONWEA
LTH LIFE

PRUDENTIAL (as
benchmark)

Investme
nt
Portion

Acquisiti
on
Portion

Investme
nt
Portion

Acquisiti
on
Portion

Investme
nt
Portion

Acquisiti
on
Portion

Investme
nt
Portion

Acquisiti
on
Portion

Investme
nt
Portion

Acquisiti
on
Portion

20%

80%

5%

95%

0%

100%

0%

100%

0%

100%

40%

60%

40%

60%

100%

0%

45%

55%

45%

55%

70%

30%

60%

40%

100%

0%

85%

15%

85%

15%

80%

20%

80%

20%

100%

0%

85%

15%

85%

15%

90%

10%

100%

0%

100%

0%

85%

15%

85%

15%

100%

0%

100%

0%

100%

0%

100%

0%

100%

0%

INVESTMENT SCOPE

Average
monthly Return

Standard
Deviation

Sharpe Index

Commonwea
lth

1.346%

4.13%

20.30%

BNI Life

1.434%

4.43%

20.94%

Axa Mandiri

0.964%

CIMB Sun
Life
Prudential
(as
benchmark)
IHSG

Average monthly
5.48%
return calculated
from Net Asset
1.105%
4.66%
Value (NAV) from
March 2011 to June
2013

8.33%
12.83%

1.472%

4.14%

23.31%

1.292%

3.91%

20.05%

RISK FREE*

0.507%

Year

Age

Premium

21

22

23

24

25

26

27

28

29

10

30

11

31

12

32

13

33

14

34

15

35

16

36

17

37

18

38

19

39

20

40

IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000
IDR
6,000,000

Commonweal
th
Investment
Benefit
IDR
IDR
2,852,270
IDR
8,736,160
IDR
15,643,794
IDR
23,753,293
IDR
34,224,530
IDR
46,517,666
IDR
60,949,698
IDR
77,892,774
IDR
97,783,792
IDR
121,135,667
IDR
148,550,558
IDR
180,735,394
IDR
218,520,100
IDR
262,879,005
IDR
314,955,959
IDR
376,093,834
IDR
447,869,148
IDR
532,132,720
IDR
631,057,393

BNI Life

Axa Mandiri

CSL Link

Prulink

IHSG

Investment
Benefit
IDR
320,259
IDR
2,942,011
IDR
7,333,393
IDR
13,824,197
IDR
22,805,676
IDR
33,460,965
IDR
46,101,998
IDR
61,098,843
IDR
78,890,534
IDR
99,997,927
IDR
125,038,941
IDR
154,746,658
IDR
189,990,772
IDR
231,803,062
IDR
281,407,586
IDR
340,256,525
IDR
410,072,687
IDR
492,899,951
IDR
591,163,095
IDR
707,738,786

Investment
Benefit
IDR
1,211,543
IDR
3,782,444
IDR
8,484,326
IDR
14,365,639
IDR
21,570,283
IDR
30,259,710
IDR
40,009,305
IDR
50,948,414
IDR
63,222,164
IDR
76,993,393
IDR
92,444,801
IDR
109,781,381
IDR
129,233,136
IDR
151,058,132
IDR
175,545,920
IDR
203,021,377
IDR
233,849,019
IDR
268,437,833
IDR
307,246,708
IDR
350,790,517

Investment
Benefit
IDR
IDR
6,160,240
IDR
13,189,051
IDR
21,208,900
IDR
30,359,518
IDR
40,800,342
IDR
52,713,283
IDR
66,305,907
IDR
81,815,043
IDR
99,510,911
IDR
119,701,832
IDR
142,739,602
IDR
169,025,615
IDR
199,017,861
IDR
233,238,907
IDR
272,284,998
IDR
316,836,448
IDR
367,669,493
IDR
425,669,815
IDR
491,847,975

Investment
Benefit
IDR
IDR
2,895,255
IDR
8,919,045
IDR
16,097,497
IDR
24,651,943
IDR
35,811,222
IDR
49,109,555
IDR
64,956,963
IDR
83,842,062
IDR
106,347,130
IDR
133,166,054
IDR
165,125,733
IDR
203,211,565
IDR
248,597,835
IDR
302,683,917
IDR
367,137,427
IDR
443,945,632
IDR
535,476,726
IDR
644,552,851
IDR
774,537,103

Investment
Benefit
IDR
6,999,319
IDR
15,164,396
IDR
24,689,393
IDR
35,800,807
IDR
48,762,863
IDR
63,883,789
IDR
81,523,154
IDR
102,100,410
IDR
126,104,872
IDR
154,107,353
IDR
186,773,735
IDR
224,880,805
IDR
269,334,727
IDR
321,192,589
IDR
381,687,541
IDR
452,258,117
IDR
534,582,444
IDR
630,618,146
IDR
742,648,895
IDR
873,338,717

BNI LIFE :
IDR
707.738.786

PRUDENTIAL:
IDR
774.537.103

INVESTMENT SCOPE
Growth of Investment Benefits for 20 years
IDR 1,000,000,000
IDR 900,000,000
IDR 800,000,000
IDR 700,000,000
IDR 600,000,000
IDR 500,000,000
IDR 400,000,000
IDR 300,000,000
IDR 200,000,000
IDR 100,000,000
IDR 0

Year 2 4 6 8 10 12 14 16 18 20

Commonwealth
BNI Life
Axa Mandiri
CSL Link
Prulink
IHSG

INVESTMENT SCOPE
Actual Average Return
18.000%
16.000%
14.000%
12.000%
10.000%
Average Return 8.000%
6.000%
4.000%
2.000%
0.000%
5 Years
Commonwealth
CIMB Sun Life

10 Years

BNI Life
Prudential

15 Years

20 Years

Axa Mandiri

If we only invest for 5 years, we can not get the benefit of

Unit Link products
A longer investment period, will give a higher return

INVESTMENT SCOPE

FVA = K.FVIFA
= 6.000.000 x (value
from Table Future
Annuity)

Differences Average Return

Actual
Average
Return in 20
years

Differences
average
return

16.15%

15.27%

-0.88%

17.21%

16.21%

-1.00%

11.57%

10.21%

-1.36%

13.26%

12.91%

-0.35%

17.67%

16.07%

-1.60%

Average
Average
Return based
Return offered
NAV

Commonwea
lth

18%

BNI Life

20%

Axa Mandiri
CIMB Sun
Life

17%

Prudential

18%

19%

WH
Y?

CONCLUSION
Commonwea
BNI Life
lth

Axa
Mandiri

CSL Link

Prulink

Premium

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

IDR
6,000,000

Face
Amount

IDR
100,000,000

IDR
120,000,
000

IDR
100,000,0
00

IDR
100,000,0
00

IDR
200,000,0
00

Average
Return/mo
nth

1.346%

1.434%

0.964%

1.105%

1.472%

Sharpe
Index

0.20302

0.20939

0.08333

0.12827

0.23313

Investment
Benefit (in
year 20)

Commonwe
alth

BNI Life

Axa
Mandiri

CSL Link

Prulink

IHSG

IDR
631,057,393

IDR
707,738,78
6

IDR
350,790,517

IDR
491,847,975

IDR
774,537,103

IDR
873,338,717

RECOMMENDAT
ION

# Make sure users understand the regulations.

# From insurance aspect, users who want a
complete self-protection does not fit well
when buying
Unit
# From investment
aspect,
DoLink.
not buy a Unit
Link if the users only wants to invest in a short
time.
# In Indonesia Unit Link
products is suitable for
mid to high community with a large income to
pay huge taxes

REFERENCES

Akbar, Aidil. 2011 Shocking Unit Link. Jakarta: Rabka Publisher

Bank Indonesia.go.id, BI Rate, retrieved June 10 th, 2013 from

http://www.bi.go.id/web/en/Moneter/BI+Rate/Data+BI+Rate/
Bapepam-LK, 2009, Perasuransian Indonesia, retrieved May 30th, 2012 from
http://www.bapepam.go.id/perasuransian/publikasi_asuransi/kajian_asuransi/Buku_Perasuransian_Indonesi
a_2009.pdf
Beritasatu.com, Proyeksi Pertumbuhan Ekonomi Indonesia, retrieved May 28 th, 2013 from
http://www.beritasatu.com/ekonomi/107449-pertumbuhan-ekonomi-2013-diperkirakan-65-persen.html
Faerber,E.2006, All about investing ,2nd ed. USA: McGraw-Hill, p19-119
Gitmann, L. Joehnk, M & Billingsley, R.S, 2009, Personal Financial Planning, 12th edition, ISBN-13: 978-1-43904447-6
Gitman, Lawrence, 2009, Principles of Managerial Finance, 12th edition, Addison-Wesley Publishing.
Komunitas Penulis Asuransi Indonesia. 2013. Asuransi Buat Apa? Mari Berdamai dengan Risiko. Jakarta: Gagas
Bisnis Indonesia
PakarAsuransi Blogspot, 12/2012, Prospek Bisnis Asuransi Indonesia 2013, retrieved May 28 th, 2013 from
http://pakar-asuransi.blogspot.com/2012/12/prospek-bisnis-asuransi-di-indonesia.html

REFERENCES
PakarAsuransi Blogspot, 12/2012, Tingkat Kesadaran Asuransi Masyarakat Indonesia, retrieved May 28 th, 2013
from
http://pakar-asuransi.blogspot.com/2012/12/tingkat-kesadaran-asuransi-masyarakat.html
Pusatdata.kontan.co,id, 2013, Axa Mandiri Attractive Money, retrieved June 4 th , 2013 from
http://pusatdata.kontan.co.id/unitlink/produk/Attractive-Money
Pusatdata.kontan.co,id, 2013, BNI Life Dana Maksima, retrieved June 4 th , 2013 from
http://pusatdata.kontan.co.id/unitlink/produk/B-Life-Link-Dana-Maxima
Pusatdata.kontan.co,id, 2013, CSL Equity Fund, retrieved June 4 th , 2013 from
http://pusatdata.kontan.co.id/unitlink/produk/CSL-Link-Ekuitas
Pusatdata.kontan.co,id, 2013, Investra Equity Fund, retrieved June 4 th , 2013 from
http://pusatdata.kontan.co.id/unitlink/produk/Investra-Equity-Fund
Pusatdata.kontan.co,id, 2013, PruLink Rupiah Equity Fund, retrieved June 4 th , 2013 from
http://pusatdata.kontan.co.id/unitlink/produk/PRU-link-Rupiah-Equity-Fund
Soekarno,S, 2011, Perencana Keuangan Pribadi. Bandung : Penerbit Consultancy & Continuing Education SBM
ITB
Yahoo.com 2013, Jakarta Composite Index, retrieved on June 10 th, 2013 from
http://finance.yahoo.com/q?s=%5EJKSE&ql=0

THANK YOU!