Insurance Must be More Professional
Who would have expected that PT Jiwasraya, Indonesia’s oldest state-owned insurance firm established in 1859, would on Oct. 10 announce Rp 820 billion (US$52.36 million) in late payment for maturity claims on its JS Proteksi Plan products?
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Who would have expected that PT Jiwasraya, Indonesia’s oldest state-owned insurance firm established in 1859, would on Oct. 10 announce Rp 820 billion (US$52.36 million) in late payment for maturity claims on its JS Proteksi Plan products?
What must we do to push insurance firms to be more professional? This is not the first such case in the insurance industry. There have been several similar cases. On Oct. 18, 2013, the Financial Services Authority (OJK) revoked the operational license of insurance firm PT Bumi Asih Jaya for its failure to fulfill the risk-based capital (RBC) requirement of a minimum 120 percent. The firm later filed for bankruptcy on Aug. 28, 2015. On June 18, 2013, the OJK revoked the business license of insurance firm PT Asuransi Jiwa Nusantara because of its unhealthy financial condition.