On Shaky Ground
The finances of the Bumiputera Mutual Life Insurance Company of 1912 continue to suffer losses. If they fail to take strategic action in the next five years, this company, which is over a century old, could experience a deficit of Rp20 trillion.
Revenue from premiumsdespite having 6.7 million policy holdersis now insufficient to pay insurance claims and operational costs. Its assets are less than liabilities which must be paid. Over the past five years, their liabilities have grown to nearly three times the value of company assets. Various efforts to improve the finances of Bumiputera over the past 12 years have not been successful. Since 2013, Financial Services Authority (OJK) has been keeping a special watch on Indonesia's pioneer life insurance business.
December 27, 2016
The finances of the Bumiputera Mutual Life Insurance Company of 1912 continue to suffer losses. If they fail to take strategic action in the next five years, this company, which is over a century old, could experience a deficit of Rp20 trillion.
Revenue from premiumsdespite having 6.7 million policy holdersis now insufficient to pay insurance claims and operational costs. Its assets are less than liabilities which must be paid. Over the past five
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