The Financial Services Authority (OJK) said it would take more firm action against a number of troubled insurance companies. Even so, OJK is not in a hurry to revoke the company's license in order to protect the interests of customers.
Head of the OJK 2A Non-Bank Financial Industry Supervision Department (IKNB), Ahmad Nasrullah said that the firm action also applies to insurance companies such as AJB Bumiputera 1912 (AJBB), Wanaartha Life, Kresna Life, Jiwasraya, Jasindo, Aspan, and the National reinsurance company Re (NasRe).
Moreover, said Nasrullah, revoking a business license is also not a way out of the problem. "Again I say that we are not executors. If we are rigid with the rules, the time is revoked, then it is revoked. Just what is it? The expectations of policyholders are not like that. They don't even care if there is a criminal element, the important thing is getting their money back," said Nasrullah when met by reporters at the OJK Office, Mulia 2 Building, Jakarta, Tuesday (13/9/2022).
According to him, OJK tries to accommodate every expectation from policyholders. So that the approach taken is that as far as possible troubled companies can be saved. "This process is what we are doing with all troubled insurance companies," he added.
Nasrullah explained, one of the things that has succeeded and is now on a good track is solving problems with Jiwasraya. This becomes possible with the commitment of the state as the controlling shareholder (PSP). Likewise with the negative risk based capital (RBC) problem that occurred at Jasindo.
"Thank God Jiwasraya on track because the state shareholder, Jasindo, hopefully it will be finished by the end of this year. I don't think there are any issues, especially in general insurance," he explained.
As for NasRe, Nasrullah said, the company has not yet submitted its financial report. One of the problems with this reinsurance company is also related to capital for the 2021 financial year report.
"What I have heard is that the capital will hit , triggered by UUS. Maybe when the conventional KAP is recalculated, it lacks capital, adding IDR 1.2 trillion. Maybe the UUS is not counted. more capital," he explained.
Aspan or Purna Artanugraha Insurance is also involved in capital problems. Based on the latest financial reports, the company recorded an RBC of -41.59% per quarter I-2022. Although it has improved compared to the end of 2021 with an RBC of -71.73%, the latest data is still far from the minimum RBC limit of 120%.
"Aspan is still in the process of recovering, the same, still tektok . They are still looking for new investors, old investors do put in a little , but it's not enough to make the company healthy, at least to help pay claims," said Nasrullah.
He said that actually there were potential foreign investors who showed interest in Aspan. But OJK had to refuse because it came from an entity other than an insurance company, in accordance with applicable regulations. His party still hopes that appropriate investors can enter to support Aspan's finances.
Different Reality
Furthermore, a different reality occurs in private companies such as AJBB, Wanaartha, and Kresna Life. The settlement of these three entities tends to be more difficult than a number of entities that have been discussed previously.
Wanaartha Life and Kresna Life, for example, the PSP of these two entities have never shown a commitment to inject capital. This, said Nasrullah, can be seen from the financial restructuring plan (RPK) submitted to the OJK. Even so, OJK is still waiting for the RPK until now.
"If you say it's protracted, it's not really. Because we are in the interests of the larger policyholders. So, we still give the opportunity. This has been a constant tektok to us. We want the RPK to really solve the problem, not add to new problems," he said.
Wanaartha Life and Kresna Life are currently in a total business activity restriction (PKU) status, meaning that the company's operations have come to a complete halt. Nasrullah said that the PKU could be immediately revoked if the PSP showed its commitment through the RPK. Including if there are strategic investors who also show serious interest.
"So, the position of the OJK, please convey the RPK to us, including the plan to increase capital. It doesn't have to be all at once, it can be gradual. We'll see the trend later, if this can make the company healthy, then we will revoke the PKU and can resume operations. But, in the rescue scheme, there is already money coming in from investors or old shareholders," he explained.
Nasrullah added, OJK cannot revoke the overall PKU status when there is no incoming capital. This has the potential to lead to a ponzi scheme so that new customers are even more disadvantaged. The RPK that OJK is waiting for also applies to AJBB.
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