STRATEGIC MANAGEMENT IN ACHIEVING
COMPETITIVE ADVANTAGE IN UNIT-LINKED PRODUCTS
ARIZONA STATE UNIVERSITY
WPC 480 - STRATEGIC MANAGEMENT
SPRING 2024
Introduction:
Indonesia is the country with the largest Muslim population in the world. So, it can be
said that the needs of the Indonesian Muslim community for e ve r yt h i n g based on sharia
principles are also great. So that this causes various financial institutions to start operating
with sharia principles, both from the banking sector, insurance, capital markets or other
financial institutions.
The development of Islamic financial institutions in Indonesia today has experienced
rapid progress, especially in the field of Islamic insurance. Various sharia-based financial
companies are competing to offer insurance programs for both the community and the
company. Along with the development of various sharia programs that have been carried out
by other financial institutions, many conventional insurance companies currently also offer
sharia insurance programs. However, it cannot be denied that the term insurance still sounds
unfamiliar to some ears of Indonesian society. This results in low public interest in using the
services of Islamic financial institutions, especially Islamic insurance.
As for sharia insurance itself is an effort to protect and help each other among a
number of people / parties through investments in the form of assets and / or tabarru' which
provides a pattern of returns to deal with the loss of assets. So, if in conventional insurance
there is a transfer of risk (transferring risk) from participants to the company, while in sharia
insurance the coverage mechanism is sharing of risk or mutual risk bearing; where the
company is only a trustee in managing and investing funds from participants' contributions,
not as an insurer.2
The world Islamic insurance (Takaful) market grew impressively with a double-digit
increase of 18 percent during the period 2007-2012. But behind that achievement, the
insurance industry with Islamic principles has serious problems.3 When you want to spread
your wings, of course there are obstacles or obstacles in the process of developing Islamic
insurance companies. Not a few challenges faced by Islamic insurance companies. Whether
the challenge comes from internal or external parties. Islamic insurance still faces challenges
in competing with conventional insurance. These challenges must be really considered by
Islamic insurance business actors. In addition, the development of Islamic insurance
information technology must be improved in order to boost the growth of Islamic insurance,
given the advanced information technology of other insurance. The next challenge In terms
of products, sharia insurance should be the first choice and ready to compete with
conventional insurance.4
If you look at the current economic situation, it is not easy for Islamic insurance
companies to survive and develop. Islamic insurance companies are faced with two types of
environments, such as internal and external. Islamic insurance companies need to understand
the state or condition of the internal and external environment in order to know their
strengths or weaknesses. In addition to knowing the strengths and weaknesses, Islamic
insurance companies must also look at the opportunities that exist and take advantage of
them so that the company has a competitive advantage.
Companies need to decide on what basis to compete in their industry. The goal is to
earn greater profits, with a favorable position against its competitors. The degree of success
to be achieved depends on the nature of the industry, and the competitive strategy chosen.
Porter has shown that competitive advantage can be developed through a price leadership
strategy or a differentiation strategy. If the firm decides to follow a price leadership strategy
the aim is to provide goods and services that are comparable to those of its competitors, but
at a lower price. This strategy will be made possible, if the company so desires, by setting an
aggressive pricing policy, while still maintaining a larger margin against competitors.
Another option is to follow a differentiation strategy. In this case the aim is to provide a
range of products and services that are different from those of its competitors.5
All companies in a particular industry compete with each other to be the strongest and
generate large profits in the industry. All types of companies try to be superior to their
competitors or try to have a competitive advantage. Thus, competitive advantage can be
defined as a state of obtaining a higher average than its competitors.6 A company is said to
have a competitive advantage if when the company has something that competitors do not
have, does something better than other companies, or is able to do something that other
companies are unable to do. Thus, competitive advantage becomes an important requirement
for the long-term success and survival of the company, even nonprofit organizations must
have a competitive advantage that can distinguish them from other organizations.7
Having and maintaining a competitive advantage is critical to the long-term success of
an organization (company). The pursuit of competitive advantage will lead to the success or
failure of the organization (company). Generally, a company is able to maintain a
competitive advantage only for a certain period, as competitors imitate it and the competitive
advantage is lost weakening of that advantage. Thus, it is not enough to have a competitive
advantage. Companies must strive to achieve a sustained competitive advantage by first,
continuously adapting to external trends and events as well as internal capabilities,
competencies and resources and by effectively formulating implementing and evaluating
strategies that take advantage of these factors.8
Sharia insurance products are not yet familiar to the public, even though these products
offer many advantages compared to existing conventional insurance products.9 Seeing the
various opportunities that exist, insurance companies are moving to see external
circumstances that are starting to look at investment-based life insurance products. A number
of life insurance players began aggressively marketing new unit-linked products in early
2016 in line with the belief that investment-based protection is still the main choice in the
national market.10 Therefore, Islamic insurance companies use strategies that can be done in
attracting public interest, starting from the creation, development or marketing of products.
The products created by insurance companies also vary, according to the needs of today's
society. One of the products that can attract people's interest in insurance is life insurance
products commonly referred to as insurance products unit-link. Life insurance is insurance
that aims to bear people against unexpected financial losses caused by dying too soon or
living too long.11 While the unit-link product itself is an insurance company product that
combines the function of protection with investment. This unit-link product also offers many
investment options with varying possible return values. In addition, insurance companies
also modify various products so that they can be of interest to the public. As with life
insurance products, it is not only a product that can guarantee a person's life but people can
also invest. Therefore, not a few Islamic insurance companies compete to make this unit-
linked insurance product a product that can compete and can achieve a competitive
advantage. This is of course each company has its own ability to achieve these advantages.
Like a sharia insurance company, PT Asuransi Takaful Keluarga, the company has a
unit-link product commonly called Takafulink Salam. Takafulink Salam is a modern
investment and protection product that contains 4 types of mixed investments through a
sharia management system. Customers can also add additional health if needed.12 The
company has unit-link products that are also owned by other insurance companies, but of
course there are differences in strategic management and forms of competitive advantage.
A. Problem Identification
Based on the background mentioned above, the author identifies the problems that
arise, including:
1. Characteristics of unit-linked products at PT Asuransi Takaful Keluarga company
2. Type of unit-linked product investment in PT Asuransi Takaful Keluarga company
3. Unit-link product management mechanism at PT Asuransi Takaful Keluarga company
4. Investment performance of unit-linked products at the company PT Asuransi Takaful
Keluarga
5. Strategic management in achieving competitive advantage in unit-linked products PT
Asuransi Takaful Keluarga
6. Forms of competitive advantage of unit-link products in the company PT Asuransi Takaful
Keluarga
B. Problem Limitation
In writing this thesis, to keep this thesis focused, the author needs to make restrictions,
the problems to be studied are as follows:
1. Unit-link product management mechanism
2. Strategic management in achieving competitive advantage in products
unit-link
3. Forms of competitive advantage of unit-linked products
4. Place of research at the insurance company PT Asuransi Takaful Keluarga
Theoretical Framework
a) Competitive Advantage
Competitive advantage is the company's ability to formulate strategies to achieve profit
opportunities through maximizing revenue from investments made. Competitive advantage
is the result (output) of a systematic and legal process to obtain and analyze information
about potential existing business competitors.13 Where this competitive advantage is the main
key in strategic management. The company must have a strategy that can attract public
interest in insurance and use products that have been created by insurance companies.
b) Strategy Management
Strategic management consists of analysis, decisions and actions taken from organizations to
create and maintain competitive advantage. Thus, the essence of strategic management is to
study the company's efforts to be able to have a performance that can outperform other
companies. In other words, the company is able to create a competitive advantage in the
market that is not only unique and valuable, but also difficult for competitors to imitate.14 In
this case, strategy is understood not only as a variety of ways to achieve ends (ways to
achieve ends) but also includes the determination of the various objectives themselves.15
c) Unit-Linked Insurance Products
Of the many products that have been created and marketed, one of them is an investment-
based life insurance product or what is commonly referred to as a unit-linked product. Unit-
link is one of the life insurance company products that unites or combines the functions of
protection and investment. This product not only offers life protection in the form of self-
protection for customers, but customers can also invest.
Management Strategy
1. Management
The term management comes from the word management (English), a derivative of the
word "to manage" which means: taking care of / governance / management. Management
means how the manager (the person) organizes, guides and leads all the people who are his
assistants so that the business being done can achieve the previously set goals.22
Management according to R. Terry is a typical process consisting of actions of planning,
organizing, mobilizing and controlling which are carried out to determine and achieve
predetermined goals through the use of human resources and other sources23 . So, in other
words, management is a process consisting of a series of activities; planning, mobilizing and
controlling / supervising, which are carried out to determine and achieve predetermined
goals through the use of human resources and other resources.
. Thus, the term management refers to a process of coordinating and integrating work
activities so that accomplished efficiently and effectively with and through others. Processes
describe the ongoing functions or key activities performed by managers. These functions are
commonly referred to as planning, organizing, leading, and controlling. The management is
very necessary when there is a group of people with different characteristics and a number of
resources that must be managed so that the goals of an organization can be achieved.
2. Strategy
Etymologically, strategy comes from the Greek compound word; stratus (meaning
troops) and agein (meaning to lead). According to the term, strategy means matters relating
to how to master and utilize the resources of a society or nation to achieve its goals.25
Glueck and Jauch argue that strategy is a unified, broad and integrated plan that connects
the company's strategic advantages with environmental challenges, designed to ensure that
the main objectives of the company can be achieved through proper implementation by the
organization.
A good understanding of the concept of strategy and other related concepts will
determine the success of the strategy. The concept is :
a. Distinctive competence, actions taken by the company in order to carry out activities
better than its competitors. According to Day and Wensley (1988), the identification of
distinctive competence, in the organization includes:
i. Labor skills.
ii. Resource capability.
These two factors cause the company to excel compared to its competitors.
b. Competitive advantage, competitive advantage is due to the strategic choices made by
the company to seize great opportunities.
c. Focus strategy, characterized by the company concentrating on a small market share to
avoid competitors by using a comprehensive cost leadership/differentiation strategy.
3. Strategy Management
Basically, the definition of strategic management involves two things that must be done
by managers, namely formulating strategies and implementing or implementing strategies
using certain tactics. Thus, strategic management can be defined as a set of decisions and
actions that result in the formulation and implementation of plans designed to achieve the
goals of a company.27
Companies carry out strategies to win the business competition they run and to maintain
the company's s u r v i v a l in the long term. To carry out the s t r a t e g y , a strategy-
making process is carried out which basically consists of 3 phases, namely the assessment of
the need for strategy making, situation analysis, strategy selection.28 Assessment of the Need
for Strategizing
This is related to whether the strategy to be carried out is in accordance with the
demands of changes in the environment or vice versa, it is better to maintain the existing
strategy for example. One way to assess whether or not a new strategy is needed is to assess
the current strategy, the good and bad, and the results obtained by the company using the
strategy.
Situation Analysis
At this stage, the company needs to analyze the strengths and weaknesses of the
organization while also analyzing the opportunities and challenges faced by the organization.
One of the most popular approaches in this phase is the so-called SWOT analysis. SWOT
stands for Strenght, Weakness, Opportunities, and Threat.
Strategy Selection
After the company analyzes the internal and external conditions of the company, the
company needs to determine the strategy that will be taken from the various alternatives
available.
B. Competitive Advantage
The main goal of every manager as a manager of an organization/company is to achieve
a superior position in its competition with similar companies in a particular industry. All
companies in a particular industry compete with each other to become the strongest and
generate the greatest profits in the industry. All types of companies try to be superior to their
competitors or try to have a competitive advantage or compete.
A company is said to have a competitive advantage if it has something over its
competitors in attracting consumers and defending itself against competitive forces that try
to suppress the company. Thus, to achieve a continuous competitive advantage, a producer
must be able to provide goods or services that are considered more than others by
consumers, better products at lower prices or better products at the same price as competitors
or quality products that are worth the price.
Competitive advantage derives from the many different activities a firm undertakes in
designing, producing, marketing, delivering, and supporting its products. Each of these
activities can support a firm's relative cost position and create the basis for differentiation.30
Thus, competitive advantage is defined as a situation in obtaining a higher average
profit than its competitors. Competitive advantage is not a competitive advantage that applies
for one year only, but is sought to be sustainable or sustainable for many years (sustained
competitive advantage).
1. Types of Strategies for Competitive Advantage
If the company wants to increase its business in the increasingly fierce competition, the
company must choose the principle of doing business, which is a high-priced product or a
low-cost product, not both. According to Porter, strategy allows organizations to gain
competitive advantage from three bases: price leadership, differentiation and focus. Porter
calls these basic generic strategies. Cost leadership produces standardized goods at very low
per-unit costs for price-sensitive consumers. Differentiation is a strategy that aims at
producing goods and services that are considered unique to the industry and aimed at
relatively price-insensitive customers. Focus means producing goods and services that meet
the needs of a small group of customers.32
i. Price Leadership Strategy
The price leadership strategy is usually firm-wide, as evidenced by high efficiency, low
overhead, limited employee perks, zero tolerance for waste, strict screening, on-demand
budgeting, wide span of control, and compensation linked to cost reduction. Some risks of
exercising price leadership are that competitors may imitate this strategy, thereby triggering
a decline in industry profits; that technological inventions in the industry may render the
strategy ineffective; or that buyers' attention may shift to differentiating features other than
price.33
ii. Differentiation Strategy
The product differentiation strategy encourages companies to be able to find their own
uniqueness in the target market. The uniqueness of the product (goods or services) put
forward allows a company to attract the greatest possible interest from its potential
consumers. The way in which products are differentiated varies from market to market, but
relates to the physical properties and attributes of a product or service the experience of
satisfaction (real or psychological) that consumers get from the product. It should be noted
that there are various levels of differentiation. Differentiation does not guarantee a
competitive advantage, especially if the standard products i n circulation have (relatively)
met the needs of consumers or if competitors can imitate them quickly.
iii. Focus Strategy
This focus strategy means how to produce products that meet the needs of a small group
of consumers. This strategy is carried out to avoid direct competition with several existing
competitors by selecting certain market segments. Thus the company's competitive arena can
be minimized and it is really able to provide the best in that market. The selected market is
of course a market that larger competitors think is too small to serve but large enough for the
company to serve.Focus strategy can also be combined with differentiation and cost
advantage. It is characterized by the company concentrating on a particular market share to
avoid competitors.34
A focus strategy is most effective when consumers have unique preferences or
requirements and when competing firms do not attempt to specialize in the same target
segment. The risks of pursuing a focus strategy include the possibility that some competitors
will realize the success of the focus strategy and copy it, or that consumer preferences will
shift to product attributes desired by the market as a whole. An organization using a focus
strategy may concentrate on a specific customer group, geographic market, or product line
segment to serve a defined but narrow market better than competitors serving a broader
market.35
2. Factors Affecting Competitive Advantage
There are several factors that can affect competitive advantage, including the
following:36
a) Value
What must be emphasized in this value or value is that a company must know about the
value or value that potential buyers want or expect, whether or not it matches the
expectations of potential buyers, whether or not it is in accordance with what potential
buyers get from the company's products.
b) Ability to Deliver Products
The ability to deliver products is related to service speed, product delivery and sensitivity
to customers.
c) Price
What is meant here is how appropriate the price set by the company for its products is in
the eyes of consumers or buyers of these products.
d) Consumer Loyalty
The creation of a group of buyers in a market share (segment) that will ignore substitute
products from competitors, in other words, a loyal costomer or loyal customer.
C. Sharia Insurance
Based on the Fatwa of the National Sharia Council No. 21/DSN-MUI.X/2001 that
sharia insurance (ta'min, takaful, or tadhamun) is an effort to protect and help each other
among a number of people/parties through investment in the form of assets and / or tabarru'
which provides a pattern of return to face certain risks through contracts (agreements) in
accordance with sharia.37
In Arabic literature insurance is known as "at-takaful" which literally means reciprocal
coverage or mutual coverage. In addition, it is also called at-ta'min which means calm in the
sense of peace of mind and loss of fear. According to Isa Abduh, what is meant by at-ta'min
is an (economic) business obtained through an agreement between two parties, namely the
insured (al-mu'amman) who hands over a sum of money to the insurer (al-mu'ammin) to
cover the insured's expenses. The benefit of others, in accordance with the agreement that
requires the delivery (replacement) of funds when there is an actual danger to the insured.38
In this case, participants donate some or all of the contributions or premiums they pay to be
used to pay claims for calamities experienced by some participants. So, if in conventional
insurance there is a transfer of risk from participants to the company, in sharia insurance the
coverage mechanism is sharing of risk or mutual risk bearing; where the company is only a
trustee in managing and investing funds from participant contributions, not as an insurer.
D. Unit-Linked Life Insurance
All calamities and disasters that befall humans are the qadha and qadar of Allah.
However, humans (Muslims) must endeavor to minimize the risks that arise. One of the
ways is by saving money. However, these efforts are inadequate, because they must be borne
more than expected. Takaful as an insurance that relies on the concept of mutual assistance
in goodness and piety (wa ta'awanu alal birri wat taqwa) and protection (at-ta'min), makes
all participants as a big family who bear each other. The system is organized by eliminating
the three questionable elements of gharar, maisir, and riba.
The risk that may arise in life insurance mainly lies in the element of time, therefore, it is
difficult to know when someone dies. To minimize this risk, life insurance should be held.
So in this case it can be concluded that life insurance is insurance that aims to bear people
against unexpected financial losses caused by dying too soon or living too long.
But seeing the variety of human needs at this time. Many insurance companies, both
conventional and sharia, modify various insurance products, such as investment-based life
insurance. This type of insurance is insurance that covers a person's life. But there is an
added value in that there is an investment value in it. So not only does it protect the life, but
one can also invest at the same time.
In this case, life insurance products that unite with the concept of investment are
commonly called unit-linked products. The unit-link is one of the life insurance company
products that unites or combines the functions of protection and investment. In a financial
plan, investment and protection are two mandatory things that must be owned, including:40
•
Investments. Investments are necessary to achieve financial goals, such as education and
retirement funds. Without investment, financial goals are difficult to achieve because relying
on savings, low interest rates, will not catch up with rising prices (inflation).
•
Protection. Protection protects customers from a number of risks, such as illness, disability
or death. Therefore, a protection is needed so that the investment can run smoothly even if
the customer experiences a disaster.
1) Characteristics of Unit Insurance- Link
Every insurance product must have its own characteristics and properties that are not the
same as other products, as well as unit-linked insurance with its characteristics that
distinguish it from other products, basically the characteristics of unit-linked are as follows:
A unit-linked policy can be used as a protection, savings and investment tool. The protection
element is in the form of coverage for death, permanent disability and total disability caused
by accident or health. The savings element is in the premium value invested, where this cash
value can be taken at any time depending on the customer. Meanwhile, the investment
element lies in the premium value included in the units as fund development, which can be
added or taken at any time.
•
Unit-linked policies generally do not have a large share value in the investment element.
So it is possible for people who have little funds to own (become investors) this unit-
linked product.
•
The cash value and protection benefits are determined by the investment performance of
the investment assets concerned, which performance is reflected in the form of unit
prices.
•
In the periodic premium type, the cost of protection and other costs can be charged to the
investment value.
•
Cash value is the value of the units allocated to the policy and is calculated using the
bidd-price.
•
Transparent, this characteristic is very supportive of the successful sale of unit-linked
products, where unit-linked insurance participants can monitor their invested funds at any
time based on the net asset value that can be seen through print or electronic media.
And customers can choose their own investment instruments according to their wishes.
•
Flexible, unit-linked products further offer policyholders the freedom to control their
funds through the investment manager. Policyholders can increase or decrease their
investment value at any time within a certain amount of the premium paid. Policyholders
can also withdraw their funds at any time without waiting for the end of the insurance
contract and can transfer their funds from one investment instrument to another according
to their needs. Such flexibility cannot be found in traditional insurance products, because
in traditional products the premium is managed based on the s u m insured.
2) Benefits of Unit-Link Insurance
In its growth, unit-linked life insurance has progressed quite rapidly. This is because the
product has more benefits than other insurance products. The benefits of unit-linked life
insurance products are as follows:
•
By paying one premium, you get two benefits at once, namely protection and investment.
•
In terms of investment, it will be managed by an investment manager, which is in charge of
not only managing but also reporting investment monitoring reports which will be sent to
policyholders every month.
•
Unit-linked insurance products offer various additional insurance (riders), such as permanent
disability, critical illness or other health problems.
•
Unit-linked products can accommodate the situation because of the lower minimum
premium for protection and investment.
•
People who still consider the complexity of financial problems, such as for investment in
mutual funds can be controlled by this unit-linked product, because then people can learn
about investment.
Takafulink Products Greetings
Takafulink Salam is a product issued by PT Asuransi Takaful Keluarga that combines
the function of protection with investment. Where this product is intended for participants
who want a life protection insurance in which there is an element of investment, and in the
future the investment funds will be intended for the heirs if the participant submits a claim or
dies.
There are several types of investors in this takafulink salam product. The company
provides freedom for participants to choose the various types of investments they want
according to the character of t h e participants, including:45
a) Aggressive Type
This kind of character can also be called a "Risk Taker/Risk Lover", which is a character who
is very brave in facing risks.
b) Moderate Type
This moderate character is also called "Risk Neutral", where the character has a cautious
attitude towards investment, but is more likely to be risk averse.
c) Conservative Type
This conservative character has another name, "Risk Averse", which means that the character
is very afraid of investment risk.
Basically, the three types of investors can be accommodated and can be covered in the
form of unit links. Usually, every insurance company issuing unit-linked products will divide
its products into four different types of funds in accordance with the nature of the investors.
The four types of investors can be categorized into the following forms:
1) Managed fund (Balanced fund)
Usually this instrument is allocated to several investment instruments that have
different investment levels in order to optimize returns. Some of the investment instruments
chosen are bonds, stocks and deposits. This fund is more suitable for a moderate type of
person.
2) Equity Fund
This instrument is preferred by aggressive or risk taker type of investors. Most of the
funds invested in equity funds will be allocated to stock instruments.
3) Fixed Income Fund
This fund is also desirable for moderate investors. Most of the fund will be allocated
into bond instruments.
4) Cash Fund
For those who are conservative when it comes to investment risk, cash funds are the
most suitable to represent their attitude towards investing. Cash funds are like people who
keep money in the money market, such as deposits and bonds.
1. Takafulink Management Mechanism Salam
As for the management of takafulink salam itself, of course there are several
mechanisms that must be carried out, including the following:
•
Part of the contributions that participants deposit will be allocated for investment purposes
using a unit mechanism, where the unit price is referred to as the unit value. Unit valuation is
carried out every trading day using the market method applicable to each investment
instrument (which will be published every next business day).
•
Ujroh (acquisition fee) will be charged from the contribution that participants deposit at the
beginning of the membership year.
•
Tabarru' (insurance fee) and administration fee are charged monthly by deducting the unit
balance (the amount of Tabarru' is determined based on age, gender and the amount of
Takaful benefits taken).
•
Administration fee of IDR 25,000 per month, deducted from the unit investment value
starting from year 2.
•
No withdrawal fees.
•
Free look, Switching and Withdrawal fees will only be charged if participants make such
transactions.
2. Types of Takafulink Investments Salam
Since the start of protection, Takafulink Salam provides positive investment value from
the first year and further increases from year to year.Customers can choose the type of
investment according to the customer's investment profile.Takafulink Salam offers 4 types of
investments that can be combined according to the needs of participants. Various choices of
investment types offered by the company PT Takaful Keluarga, including the following:
a) Istiqomah (Sharia Money Market and Sukuk)
This type of model offers a way to invest with stable returns and safe risks. In this
option, all customer (participant) funds will be placed in sharia-based fixed income
investment instruments and a small allocation in the sharia money market.
This type of istiqomah investment is intended for customer profiles (participants) who
want optimal investment returns with a minimum level of risk. In other words, the
investment risk is not fluctuating, i.e. not daring to take greater risks. In line with the
meaning of istiqomah which is straight and stable.
Investment allocation in the Istiqomah investment model includes:
•
Sharia Money Market Instruments = 0% - 20%
•
Sharia Fixed Income Securities = 20% - 80%
b) Mizan (Ballanced)
The meaning of mizan itself is balanced. T h i s type of investment will be chosen by
someone who has a fairly bold risk profile, because this Mizan investment model is provided
for customers who want optimal investment returns with a medium level of risk.
It is not conservative but not aggressive either. The return on this investment is also
quite high, but the risk level is also quite low. In this option, part of the customer
(participant) funds will be placed in sharia stocks and sharia-based fixed income instruments
and a small allocation in the sharia money market.
Investment allocation in the Mizan investment model includes:
•
Sharia Money Market Instruments = 0% - 20%
•
Sharia Equity = 20% - 40%
•
Sharia Fixed Income Securities = 50% - 70%
c) Ahsan (Ballance Aggressive)
This type of Ahsan investment is intended for customers with a risk-averse profile who
expect a fairly high return and maximum yield with a comparable level of risk. It suits
customers (participants) who have a balanced-aggressive profile. Usually, customers take a
period of more than 5 years. In this option, part of the customer's funds will be placed in
sharia stock instruments and a small allocation in the sharia money market. The investment
allocation in Ahsan's investment model includes:
•
Sharia Money Market Instruments = 0% - 20%
•
Sharia Fixed Income Securities = 20% - 40%
•
Sharia Equity = 40% - 60%
d) Alia (Aggressive)
This type of Alia investment is intended for customers who have sufficient funds, have a
brave nature (risk taker), with the hope of obtaining maximum returns. This type of
investment is in accordance with an aggressive investment profile that dares to take risks to
obtain higher returns. In this option, part of the customer funds (participants) will be placed
in sharia stock instruments and a small portion of the allocation in the sharia money market.
The investment allocation in Alia's investment model includes:
•
Sharia Money Market Instruments = 0% - 20%
•
Sharia Equity = 20% - 80%
The percentage composition of the Investment Fund above may change at any time, in
accordance with the investment policy of the Takaful Indonesia Fund Manager.
3. Takafulink Investment Performance Greetings
The Investment Fund Valuation Basis uses the unit of "unit" which is then referred to as
the unit value. Unit valuation is carried out every business day using the market price
method applicable to each investment instrument.
The published unit value is the unit value on the next business day, which is used as the
basis for calculating participants to make transactions related to Takafulink.
The above investment return performance is past performance and is not a guide to
future performance, the unit value may increase or decrease depending on current market
conditions. All risks, finances, and benefits resulting from investments are entirely the
responsibility of participants, therefore prospective participants are required to read and
understand the provisions in the brochure and proposal before making an investment.
Market Note:
In February 2015, the value of Takafulink Salam Istiqomah recorded an increase of
0.52%, while at the same time the ISBI indicator also recorded a slightly larger increase of
0.72%. In addition, the value of Takafulink Salam Istiqomah in March 2015 recorded an
increase of 1.52%, while at the same time the ISBI indicator also recorded a smaller increase
of 0.57%. This could not be separated from the influence of more stable domestic sentiment
and more solid economic growth plans. In the month of May 2015 the value of Takafulink
Salam Istiqpmah still recorded an increase of 0.23%, exactly the same as the ISBI which also
recorded an increase of 0.23%. Strong regional pressures as well as the effects of a slowing
domestic economy led investors to hold back on transactions causing the market to stagnate.
Meanwhile, Takafulink Salam Istiqomah in August 2015 still consistently recorded an
increase of 0.32% where as a comparison, the value of ISBI also increased by 0.27%. The
increase that occurred in fixed income-based investment assets is relatively small, but much
better than other investment assets. Especially during the unfavorable global sentiment
during the month of August in 2015, the choice to allocate fixed income-based investments is
the right decision.
Amidst the decline in Indonesia's capital market investment instruments in 2015.
Takafulink Istiqomah managed to record a positive performance of 5.23%. This performance
also made Takafulink Istiqomah the best among similar unit links. The conservative profile
of Takafulink Salam Istiqomah can be used as an alternative for participants who want a
high level of risk but with stable investment growth.
Conclusion:
Based on the results of the research conducted, the authors can draw the following
conclusions:
1. Takaful Family Insurance Company is the first sharia insurance company in Indonesia,
which has a unit link product commonly called Takafulink Salam. There are 4 types of
investments in Takafakulink Salam, namely (a) Takafulink Salam Istiqomah, which
allocates its investment funds to Sharia Money Market Instruments (Sharia Money
Market) 20% and Sharia Fixed Income Securities (Fixed Income) 80%; (b) Takafulink
Salam Mizan, which allocates its investment funds to Sharia Money Market Instruments
(Sharia Money Market) 0% - 20%, Sharia Equity = 20% - 40% and Sharia Fixed Income =
50% - 70%; (c) Takafulink Salam Ahsan, which allocates its investment funds in Sharia Money
Market Instruments = 0% - 20%, Sharia Fixed Income Securities = 20% - 40% and Sharia
Equity = 40% - 60%; (d) Takafulink Salam Alia, which allocates its investment funds in Sharia
Money Market Instruments = 0% - 20% and Sharia Equity = 20% - 80%.
2. The strategy used by the company PT AsuransiTakaful Keluarga in order to provide the
best services and benefits to maintain investment performance and avoid a decrease in
investment value so that it can be as follows:
(a) Provides a variety of maximum protection benefits for participants.
(b) Provides some of the advantages and benefits required by participants.
(c) Maintain portfolio in sukuk already owned and cash placement in sharia deposits.
(d) Allocate Islamic stocks to blue chip Islamic stocks and Islamic stocks related to
building infrastructure.
(e) Adding the ownership portion of blue chip sharia stocks that have positive financial
statement performance.
By implementing some of these strategies, starting in terms of life protection to strategic
management in maintaining the value of investment in order to touch a positive number
and there is no significant decline, causing this Takafulink Salam product to become a
different product with its own advantages. This is a positive value for Takafulink Salam
products, to be able to be confident in marketing their products to the public, especially
those who have the potential to be able to invest.
