Financially stricken state-owned life insurer Asuransi Jiwasraya has property assets across Indonesia estimated to be worth IDR6.7tn ($466m). However, the insurer is finding it difficult to dispose of these assets.
Indonesia plans to close down embattled state life insurer Asuransi Jiwasraya and create a new company to settle outstanding claims, a move requiring state investment, the firm's chief executive yesterday, reported Reuters.
According to Fitch Ratings a recent string of defaults due to corporate governance failings in Indonesia's financial industry highlights governance remaining a major risk for creditors and investors.
Indonesia's life insurance industry posted premium income of IDR44.1tn ($3.1bn) in the first quarter of this year, a 4.9% decrease compared to the corresponding quarter last year, according to the Indonesian Life Insurance Association (AAJI).
The government has unveiled a new rule to guarantee working capital loans for micro, small and medium enterprises (MSMEs) in a bid to encourage banks to grant credit to these businesses whose operations have been heavily disrupted by the COVID-19 pandemic.
The Attorney General's Office (AGO) has named 13 asset management companies and a Financial Services Authority (OJK) official suspects in a case of alleged corruption and money laundering involving state-owned insurer Asuransi Jiwasraya.
Global insurer Zurich plans to convert one of its business entities, Zurich Insurance Indonesia (ZII), to a Shariah general insurance company, subject to regulatory approval.
Hong Kong-based insurer FWD Group last week reached an agreement to buy a significant minority stake in Indonesia's Asuransi BRI Life - the life insurance arm of Indonesia's fourth largest bank Bank Rakyat Indonesia (BRI).
The Indonesian government is expanding a micro insurance scheme for fish farmers, in order to minimise risks being faced by small-scale aquaculture producers.