Insurance firms required to publish quarterly reports

JAKARTA (JP): The government has required insurance companies to be more transparent by publishing their financial performance through the print or electronic media every three months, an official of the finance ministry says.

Sophar Lumbantoruan, director for insurance affairs at the directorate general of financial institutions, told reporters yesterday that the quarterly report should include total investments, assets, number of insurers, its obligations, the amount of premiums and claims as well as their own stakes in the insurance businesses.

He expressed concern that nine of the 95 insurance companies in the country had not fulfilled the reporting requirement.

The nine firms, according to Lumbantoruan, include PT Asuransi Jasaraharja Putra, PT Asuransi Bumi Putra Muda 1967, PT Asuransi Bringin SA, Manunggal General Insurance, PT Asuransi Nirbaya Sraya, PT Asuransi Purwanjasa, Tata International General Insurance, PT Asuransi Wahana Tata and PT Zurich Insurance Indonesia.

He added that three of the 46 life insurance companies also failed to publicly announce their quarterly financial performances.

"They include PT Aspac Life Insurance, PT Asuransi Jiwa Century Lifindo Perdana and PT Asuransi Tugu Mandiri," he pointed out.

"The reporting delays were caused by their ignorance of the importance of transparency in improving management and efficiency," he said.

He conceded that the government has not taken any measures against insurers for failing to publish quarterly reports.

"We only impose fines of Rp 1 million (US$462) on insurance companies which fall behind in announcing their annual reports," he added. (fhp)