News Flash, March 8 2010
Customers are Required to Take a Complete Test
To anticipate money laundry and terrorism, every potential customer of insurance, pension fund and financial institutions that contains risks must go through a complete test (due diligence). To support that plan, the Minister of Finance, Sri Mulyani Indrawati issued a Regulation of the Minister of Finance No.30/PMK.010/2010 about the Principal to Know the Customers for non-banking institutions. This regulation has been published in February 18, 2010. The government issued this regulation to fulfill the principle of ‘know your customer’.
Every non-banking institutions must have a special unit who serves to do a research and to check the identity of their potential customer. The special unit also responsible to make sure that the fund is not for money laundering or terrorism financing fund. In addition to interview and ask the customers documents, the non-banking institutions must also cross-check all information that given by customer. Customer’s document identification and verification should be increased to a more stringent due diligence for the high-risk customer.
*Taken from Kompas; Februari 19, 2010
News Flash, January 25 2010
In the beginning of 2010, activities in insurance business – especially in life insurance – are interested to be followed. Based on Insurance Media Research Institute data per December 2009, there are 26 life insurance companies – both domestic and joint venture – who offer unit linked product. Those 26 companies offer more over 250 kinds of unit linked products, including unit linked sharia product, which is even offered by life insurance joint venture companies*.
With the increasing number of new life insurance companies and variety of unit linked product that they offer, the competition in life insurance industry is tougher. Each life insurance company is competing to provide the best service to their Customer.
One was Commonwealth Life. Giving the best service to Customers is company’s commitment that will never change. Entering the year 2010, Commonwealth Life opened two new agency offices in Jakarta, placed in Setiabudi Building 2 and Graha Atrium. Commonwealth Life has also officially opened one new agency office in Bandung placed in Graha International Building, at Asia Afrika Street. With three new agency offices, Commonwealth Life hopes that the company can stand closer to their Customer and give the best service to them.
* Taken from Media Asuransi Magazine January 2010 Edition
News Flash, September 16 2009
Commonwealth Bank of Australia Do Care for Tasikmalaya
Tasikmalaya 7.5 magnitude earthquake which also rocked Jakarta on early September 2009 not only giving a scary and traumatic experience, but also causes hundreds of people died and injured, and thousands houses and public facilities damaged and shattered. Therefore, Commonwealth Bank of Australia (CBA Group) through its subsidiaries in Indonesia (Commonwealth Life, Commonwealth Bank and First State Investment Indonesia) is touched to donate AUD$100.000 through Kompas Humanitarian Fund for the victims in Tasikmalaya. Simon Bennett (Commonwealth Life President Director) and Nursing (Commonwealth Bank President Director) give the donation and directly received by Rikard Bagun (Kompas Chief Editor). The donation will be used for the post-disaster rehabilitation especially for houses and schools.
News Flash, July 27 2009
Inflation Link: Safeguard the Value of Your Sum Insured
Indonesia is one of countries with quite large inflation number compare to other countries. Based on Statistics Indonesia, inflation is the key indicator that shows price movement in goods and services consumed by customers. The movement will straightly impact the buying power and also people’s living cost and may impact the change of asset value, obligation, contract value, and business transaction.
As an illustration, Indonesian inflation rate in October 2006 reached 6,29%, 2007 reached 6,88%, and 11.77% in 2008. This year, Bank Indonesia predicts that inflation rate might be below 5%. This information is based on Statistics Indonesia announcement in June 2009 (mtm) of 0,11% and inflation year calendar January-June 2009 as much as 0.21%.
Looking at the unpredictable inflation rate, Commonwealth Life presents a new solution to protect the value of customers money from inflation through Inflation Link. Inflation Link is an additional feature from Investra Premier product so that the annual value of premium and Sum Insured will be adjusted to annual percentage of Consumer Price Index (CPI), which was calculated based on CPI monthly data and inflation rate in Indonesia periodically issued by Statistics Indonesia.
The new Inflation Link feature is offered to both Commonwealth Life customers and prospects. Customer may choose either 50% or 100% from CPI percentage to protect their investment and protection value.
Through this new facility, customers do not have to worry that their protection value will decrease from inflation. For more information, please visit the nearest Commonwealth Life Sales Office or contact Customer Service Center CommCenter (021) 2550 1234 (local access) or 0804 150 1234 (national access).
News Flash, July 10, 2009
Economic Condition Will Not Effect Your Investment Value & Sum Insured
Bisnis Indonesia (10/7) quoted President Susilo Bambang Yudhoyono statement that Indonesia’s economic condition may reach to 4.3% in 2009, while inflation predicted to reach 4%.
Shall the economic condition affect your Investment Value and Sum Insured?
Investra, Commonwealth Life’s unit link product, is very aware of your needs to protect them in facing fluctuate economic condition.
We’ll provide the solution. Coming soon!
News Flash, July 2, 2009
School Holiday with Commonwealth Life in Bobo Fair Jakarta and Surabaya
Commonwealth Life has once again participating in Jakarta Bobo Fair (1-5 July 2009) in Jakarta Convention Center (JCC) and Surabaya (8-12 July 2009) in Gramedia Expo. Carrying “Technology and I” as the theme, Commonwealth Life provide Nintendo Wii console game for the children.
This year is the 7th year for Commonwealth Life in participating in Jakarta Bobo Fair and the 2nd year in Surabaya. People have given their positive response to Commonwealth Life and that through this event; Commonwealth Life hopes that people will be more aware in providing life protection for their family.
Visit Commonwealth Life’s stand in Jakarta Bobo Fair in Jakarta Convention Center, Jl. Jend. Gatot Subroto, Jakarta 10270, Assembly Hall – Stand No. 19 and Surabaya in Gramedia Expo, Jl. Basuki Rachmat 93-105, Surabaya 6027 – Stand No. S8. Get unique merchandise for your children by participating in our games at our booth.
News Flash, April 28, 2009
Commonwealth Life and Commonwealth Bank Present CommLink and CommLink Premier.
In collaboration with Commonwealth Bank, Commonwealth Life launched their new bancassurance products called CommLink and CommLink Premier on 28 April 2009. This product launch also followed by the official signing ceremony from both parties represented by Simon Bennett (President Director of Commonwealth Life) and Andriaan Laoh (Deputy CEO of Commonwealth Bank) on 7 May 2009 in Mercantile Athletic Club Jakarta.
In addition to the previous bancassurance products, CommCare and Life Privilege, CommLink and CommLink Premier are presented to the Commonwealth Bank customers to complete their needs of an innovative life insurance product.
CommLink is a program combining investment and life insurance flexibility. With a unit linked single premium, your investment will be invested fund on fund. Your premium will be managed by several fund managers who will give you an optimum investment result and a wider diversifying investment risk.
CommLink Premier is another interesting bancassurance product. It is a perfect combination of insurance and investment in a balance way. With an easy payment method, which is only debited from your saving account, you and family would be able to plan your financial goal wisely.
For more information, please kindly contact Commonwealth Bank Call Center at (021) 7917 6000 or visit the nearest branch.
News Flash, March 20, 2009
Commonwealth Bank of Australia (CBA) Listed in ‘World’s 50 Safest Banks 2009’
and ’20 Best Australian Brands’
Commonwealth Bank has been ranked 12th on the Global Finance magazine mid-year update of its ‘Safest Banks’ listing. The “World’s 50 Safest Banks 2009” were selected through a comparison of the long-term credit ratings and total assets of the 500 largest banks around the world.
Ratings from Moody’s, Standard & Poor’s and Fitch were used. Global Finance publisher Joseph D. Giarraputo said, “The rating agencies have determined these banks have demonstrated a more prudent and sustainable approach to risk than their peers.”
At the same week, Interbrand, the world’s leading brand consultancy announced the ’20 Best Australian Brands, with Telstra and Commonwealth Bank being named as having Australia’s highest brand values. According to Interbrand, the Group achieved its 2nd placing because of its consistency in cross-selling and delivering the types of products customers want across a range of categories. An important criterion of Interbrand’s evaluation was the successful strategies put in place by companies to ensure continued success in the downturn.
Both rewards prove that CBA is in a very well & strong condition and also commit to grow the business in financial in Industry throughout the world.
News Flash February 13, 2009
Indonesia’s Economic Condition After Global Economic Crisis
FSII Note
Approaching the global crisis, Indonesia economic condition is in a strong position since 1998 crisis. Indonesia’s export prices and income per capita was raised. By the beginning of 2008, Indonesia’s unemployment and poverty rates also decreased until the lowest level since last 3 years.
When crisis hit the world by the end of 2008, world’s market fell down and also influence Indonesia’s investment market. Export revenue dropped off as the world’s commodity prices was fell. As the impact, Indonesia’s economic growth is slowing down and effected the manufacture industry and the raise of unemployment number.
Along with the fall of world’s oil price and its effect to oil price in Indonesia at early 2009, inflation rate was also slowing down. Economic specialist projected that this such condition may influence the commodity price during 2009, which will benefiting the poorer households in Indonesia.
Indonesia was among the last into the downturn, but could be among the first to recover. Commodity prices should recover some of recent losses when global growth resumes late 2009 and will support Indonesia’s investment and economic growth. Indonesia is also less exposed to lower consumer demand in the US post-recovery, and therefore has less impact to the export market in regards to that.
Government and MoF have proactively anticipated and responded to the crisis faster than authorities in many neighboring economics. They have taken prevention step in financial sector by cutting interest rates, liquidity injection, time-deposit insurance, sustain infrastructure investment spending, and many more.
For what government has done, we do not have to worry to start investing the long term investment in Indonesia’s market. Global economic crisis hit our country at our strong economic condition so that government has take preventive action before it even happening.
Let’s put aside our uncertainty and start investing.
News Flash January 5, 2009
2008 Investment Performance Flashback and Investment Opportunity & Strategy in 2009 - FSII Note
Below is the 2008 investment performance flashback and investment strategy for 2009.
Question (Q): How is the investment condition during 2008?
Answer (A): During 2008, we have experience a global economic crisis that was started off by subprime mortgage in USA and directly impact the stock market and at the end the world economic is weakening. World’s stock market performance was fall by more than 30% and followed by the fall of commodity prices as the effect from low demand as the effect from world economic condition. The commodity price reduction has made the expectation for world’s inflation for 2008 and 2009 is lower. Therefore it gave chances to the world’s central bank to reduce the interest rate in order to maintain one country’s economic performance.
Q: How does it effect to Indonesia’s stock market and economic condition?
A: Stock market is the first sector that is impacted from the global economic crisis. Stock market, exchange rate, and obligation performance has reduced by 50%, 20%, and 10%, which was majority caused by the high selling pressure from foreign investors. Its impact to the economic was raised on the 4th quarter of 2008, which the export performance, especially export to USA, was reduced. Other sectors such as consumers, financial, and industry still give positive contribution as stated on emitent’s quarter report in Indonesia.
Q: What makes the drop of stock market performance in Indonesia?
A: As stated above, Indonesia’s emitent performance is not as bad as other countries’ (e.g USA). But their stock prices was drop quite significantly. Global economic crisis made the investors divert their high-risk investment to the low-risk investment such as US Dollar. In summary, the decreasing of stock market performance is not because our fundamental factors, but more on sentiment. In our opinion, current stock market condition is quite interesting for investors, especially for those who has a long term vision so you can buy investment asset on ”low” price.
Q: How about investment prospect in 2009?
A: Global economic condition will still move slowly in 2009 and effected to real sector performance in Indonesia although will not as bad as in USA. Several industries will earn some advantages from this condition, since the drop of commodity prices will also drop the global interest rate. Obligation market, emitent in low-class consumer, infrastructure, and financial institution will receive positive impact and become interesting investment medium in 2009.
Q: What strategy will you recommend in investment sector on 2009?
A: As an investor, moreover if you have a long-term vision, we will recommend you to have a financial planning before investing and also to set your investment objectives. After setting the objectives, you may choose investment asset that suit your objectives and risk profile. You may also need to diverse your investment to different type of asset to reduce the investment risk. The other way to minimize the investment risk is through “dollar cost averaging”.
Q: As an investor, what should we do to face this condition?
A: Price has fluctuated during 2008 and has influenced an investor’s value and portfolio composition. Therefore, we will recommend to review your investment portfolio whether it is suit your investment objectives:
- If your investment portion is still small, we will recommend to add your portion during this condition
- If the portion is enough, then we will recommend not adding it.
- If your investment portion is too big, we will recommend to consider your investment objectives.
Q: Is trading during this condition will be recommended?
A: In theory, trading gives high return in a short term. However, the risk is also high. If you are good as “market timer”, high-discipline, own the mediums, you may use the price volatile through trading. For investor who doesn’t have those criteria, we will recommend you to be a long term investor. Because trading might reduce investment return because there will be transaction cost and high risk nowadays.
Q: Is ”switching” on this condition is recommended?
A: It depends on investor’s need. Every product has its own feature and objectives. So, you should look back on your objectives before you switch your investment. Since investment objective is for long-term, we may not let this condition (which might be occur only in a short term) change your long-term objectives.
Q: How to reduce investment risk in this condition?
A: Actually, market condition should not affect investment risk. But what may influence is how you plan your financial condition, such as:
- Has a long term objectives. Double interest concept will help investor to reduce investment allocation. Also, having a long term timing will help investor to face fluctuated market risk.
- Investment diversification. Every class of asset has it owns characteristics. Therefore, to have different class of asset or diverse you investment may reduce the investment risk.
- Regular investment. Regular investment also known as “dollar cost averaging”. It will not only reduce the investment risk, since you buy it in different prices, you will also make yourself discipline in investing, even during hard times.
- Evaluate your investment performance regularly, but not too often. Because it may influence your investment objectives. Our recommendation is to evaluate it every 6 months or 1 year. Because investment objectives will not change every day or every month.
Q: What is the meaning of ”double interest” concept?
A: Double interest concept is actually very simple and rarely implemented on our daily lives. A simple formula to know your investment term and interest rate per year needed in order to double investor’s money is using ”72 Formula”. To calculate them, 72 divided by investment term or interest per year. The result is the interest per year or investment term needed to double investor’s money. Example: If the investment term is 10 years, we will need approximately 7.2% interest per year or if interest rate per year is 20%, then you will need 3.6 years of investment term.
News Flash November 26, 2008
Commonwealth Bank of Australia Performance
Commonwealth Bank of Australia (CBA) Performance as reported in last week’s Annual General Meeting in Melbourne, half year results for 2008/2009 will be adversely impacted by significantly higher first half provisions. These are driven primarily by exposures to ’Lehman Brothers’, ’Allco Finance Group Limited’ and ’ABC Learning Centres Limited’. There is no evidence of systemic credit issues, and overall credit quality in the Group’s consumer and commercial books remains sound.
Despite current challenging market conditions worldwide, the underlying business performance of the Commonwealth Bank of Australia (”the Group”) remains strong.
The Group:
- Continues to hold an AA international credit rating – one of only 20 banks worldwide to do so
- Holds a very healthy AUD $66 billion in liquid assets
- Holds a 30% market share in household deposits, more than double its next Australian competitor
- Has had the strongest deposit balance growth during the past 12 months of all the Australian banks at 34%
- Has continued to increase its home loan market share in 18 consecutive months
- Has a tier 1 capital ratio of 7.5% (FSA equivalent of 11%), the highest of our Australian competitors and of most European banks
The Group continues to maintain a cautious approach in the current environment, with emphasis on maintaining strong capital, funding and liquidity positions.
While the Australian economy has been relatively resilient, domestic economic activity is slowing, but despite the slowdown, CBA Chairman John Schubert has reassured the market that CBA is outperforming its major peers in financial performance and will continue to do so.
Commonwealth Life Corporate Update
Click on below file to see Commonwealth Life and Commonwealth Bank of Australia's strength and performance in facing the global economic condition.
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News Flash Oktober 13, 2008
Trading on Indonesia Stock Exhange (IDX) resumed today, 13 October 2008. Investra’s unit price for today, 13 October 2008, will be calculated on Tuesday, 14 October 2008 and will be published on Commonwealth Life’s website as well as in the media on Wednesday, 15 October 2008.
News Flash Oktober 9, 2008
Q&A IDX Trading Suspension and its effects to Commonwealth Life
- Why did Indonesia Stock Exchange (IDX) suspend its stock transactions?
On 8 October 2008, the IDX composite index fell more than 10%. Suspension of trading is allowed under IDX operational procedures in order to minimize stock price fallout in extreme situations. So basically, this intervention was positive for the current market.
- How long will this condition occur?
The suspension policy is subject to government decision. We will update you regularly regarding this condition which has occurred only once previously - when IDX was subject to terrorist attack in September 2000. Suspension is never expected to last for much more than a couple of days.
- As an Investra product owner, what should I do?
To know what you should do, please review your risk profile and investment goal. Because Investra is a long-term investment, it would be wise for you to consider maintaining your investment for the future.
- When trading has been suspended, can I still withdraw, redeem, switch, top up, redirect, or reinstate my policy?
When IDX has suspended trading, we are unable to process any of the above-mentioned requests. The simple reason for this is that there are no available unit prices. However, any such requests received will be processed as soon as trading resumes.
- If I buy Investra while trading is suspended, will I still be covered under the policy?
Your life cover will commence when your policy is issued, because basically your life cover and investment are separate matters.
- Under this condition, what should I do for my policy renewal?
Your policy renewal should not be affected by this situation because you need to renew your policy to keep your cover. The transactions involving unit prices will be processed after IDX has resumed trading.
Statement First State Investment 8 October 2008
Statement First State Investment 9 October 2008
Announcement Indonesia Stock Exchange
Insurance Business Competition in 2010