Bailing Out Bumiputra
Bumiputera's problems began with its status as a mutual, rather than a limited, company. With this kind of model, it has not been managed with sound insurance company principles. The management is weak and the company seems to function in an extremely complex way. For example, Bumiputera has a Members Representative Board, as well as a board of commissioners, to oversee the directors.
This mutual type of company has a long history. Boemi Poetra was established in 1912 to improve the welfare of teachers. In 1966, the name was changed to Asuransi Jiwa (Life Insurance) Bumiputera. The company grew rapidly and was once ranked among the 10 largest insurance companies in Indonesia. It has policyholders across the country, mostly outside cities.
December 27, 2016
Bumiputera's problems began with its status as a mutual, rather than a limited, company. With this kind of model, it has not been managed with sound insurance company principles. The management is weak and the company seems to function in an extremely complex way. For example, Bumiputera has a Members Representative Board, as well as a board of commissioners, to oversee the directors.
This mutual type of company has a long history. Boemi Poetra
...