Govt to freeze more insurance firms<\/p>\n
The government warned on Tuesday that more insurance companies
\nwould have their business licenses suspended this year due to
\ntheir failure to meet the requirement of 100 percent Risk Base
\nCapital (RBC) by the end of this year.<\/p>\n
\"We have to freeze their business licenses because their RBC
\nis in a bad way. But we have not yet revoked their licenses,\"
\ndirector of insurance at the Ministry of Finance, Firdaus
\nDjaelani, told reporters on the sidelines of a seminar on money
\nlaundering.<\/p>\n
The RBC is the ratio between capital and risk exposure.<\/p>\n
However, Firdaus failed to give any details on the number of
\ninsurance companies whose licenses risk being revoked this year,<\/p>\n
Last year, there were 170 general and life insurance companies
\nin the country. But, the Ministry of Finance closed down nine of
\nthem due to their poor financial state.<\/p>\n
The government has increased the RBC ratio in a bid to
\nclean up the country's messy insurance industry and to bring
\nabout consolidation in an over-crowded market.<\/p>\n
The minimum RBC requirement for this year has been increased
\nto 100 percent from 75 percent last year. It will be further
\nraised to 125 percent in 2004. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-freeze-more-insurance-firms-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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