Study: 30% of Indonesians engage more with insurance through loyalty programmes

Nearly 30% of Indonesians report engaging more with their insurance policies when loyalty programmes are offered, according to a new study by FWD Insurance in collaboration with Kadence International. The research highlights the growing role of loyalty initiatives in shaping policyholder behaviour, driving renewals, and encouraging additional coverage.

The study surveyed both existing policyholders and non-policyholders, exploring the types of programmes that boost participation, retention, and overall engagement. It comes amid rising financial literacy in Indonesia, with the Financial Services Authority reporting an insurance literacy index of 45.45%, up 8.55% from last year.

“Currently, there is no definite formula for the insurance industry to maintain loyalty and engagement among individual policyholders. We’re collaborating with Kadence International on the Customer Programme Research to identify the types of programmes that can maintain customer loyalty and engagement, while also enhancing their appeal to policyholders with relevant needs,” said Rudy F. Manik, chief human resources and marketing officer at FWD Insurance Indonesia.

Don't miss: FWD launches 12 charitable grants across Asia

External influences remain significant in insurance decisions. Personal experiences shared by family, friends, or relatives influenced 64% of respondents, while 39% cited social media and influencers as key sources.

When it comes to customer programme expectations, respondents showed strong interest in wellness initiatives, promotional offers, and exclusive insurance experiences. The study also confirmed that loyalty programmes are highly valued: 93% of existing policyholders expressed satisfaction with loyalty initiatives, and non-policyholders indicated such programmes strongly impact their decision to purchase insurance.

The research looked into both respondents’ financial priorities and the range of financial products they hold. It showed that 93% of respondents prioritised financial security and stability, while 55% focused on having insurance and medical funds, including emergency health savings. Age differences were evident: respondents aged 25-35 prioritised savings for future needs, whereas those aged 45-50 emphasised medical funds, insurance, and business capital.

Respondents reported owning at least six financial products, ranging from insurance and savings accounts to digital and physical payment methods, as well as participation in the national social security scheme (BPJS).

“The findings of this study are expected to provide valuable insights to improve financial inclusion in the life insurance industry. Customer aspirations are an important aspect that must be considered to run a sustainable, long-term business,” said Safiudin Alwi, head of business acceleration at Kadence International.

“The results of this study serve as a driving force for us to remain focused on our customers with the support of technology. This is part of our effort to realise our vision of changing the way people perceive insurance,” Manik added.

FWD Insurance, part of FWD Group, serves over 12 million customers across ten Asian markets. Founded in 2013, FWD Group is listed on the Hong Kong Stock Exchange and offers products including term life, health, critical illness, accident, unit-linked, and savings-insurance through agencies, bancassurance, and digital channels.

Meanwhile, Kadence International is a boutique global market research firm providing personalised insights. It joined Japan’s Cross Marketing Group in 2017 and has expanded across Asia, Europe, and the US, offering research services in customer understanding, new product development, branding, and advertising.

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