Operational cost slimmed down, Avrist’s profit up 18.25% in 2023
JAKARTA – PT Avrist Assurance, an insurance company widely known as Avrist, reported net profit soaring 18.25% year-on-year (yoy) to IDR 145 billion last year.
This net profit surge managed to boost ROA and ROE by 0.38% and 0.51% to 1.92% and 6.14%.
According to Ian Natapradja, Director of Finance of Avrist, the profitability was successfully maintained, thanks to the shift in composition of premium income. “In the previous year, regular premium reached 55%, while single premium reached 45%. In 2023, regular premium increased to 60%,” he added.
“This regular premium may generate more sustainable profit in the long run,” added Natapradja. Furthermore, the net profit was significantly promoted by operational cost efficiency, which slipped 3.47% yoy to IDR 233 billion.
However, Simon Imanto, President Director of Avrist, mentioned that the efficiency strategy is not only applied to costs and expenses, but also efficiency of business process, agent recruitment, and even new product development through digitalisation.
“All things related to products, we conduct it through EAPPS,” said Jos Chandra Irawan, Director of Business of Avrist. EAPPS is an integrated application for Avrist product sales. Aside from EAPPS, Avrist Solution is also made available as a user portal, allowing them to access their policy and file claims.
In regard to agent recruitment, Avrist is said to have utilised AVPIN, an e-recruitment application for agents. “If a company wish to accelerate its manpower development, which includes recruitment process of potential agents, it must be done with technology,” Irawan said.
Until the end of 2023, the number of Avrist agents had increased 60% to 1,907 agents. In addition, Avrist plans to establish 5 new Independent Marketing Offices, acting as a meeting point for agents, this year, thus bringing total offices to 39 units by the end of December 2024. (ZH)