Insurance Companies On The Loss Of Paying? Here’s the Cause

the cause of life insurance failing to pay

Recently, there is a lot of news about the insurance company JiwaSraya failing to pay. If the number is still in the tens or tens of billions, it’s probably not something to be too worried about considering JiwaSyara is a big company.

However, the total number of defaults that have become an obligation for Jiwa Sraya to be paid to all customers has already reached around 12 trillion rupiah, and this figure is certainly not a small number.

How can the admin know this number information? of course from sources that are trustworthy and clear and can be accounted for, namely from Youtube video shows that have been uploaded by the CNBC Indonesia channel which is a platform that provides news and information about business and the economy.

Causes of JiwaSraya Insurance Defaults and Bankruptcy

According to a CNBC Indonesia report, whose data also refers to the Attorney General’s Office, the total number of JiwaSraya’s defaults as of December 2019 is 12.4 trillion.

Also, it turns out that the amount of Risk Based Capital is also very far from the threshold determined by the OJK (Financial Services Authority) of 120% because for JiwaSraya it has reached 805%.

The video also explains several things that have made JiwaSraya lose money or that have caused the company to fail to pay its customers, including the wrong investment.

JiwaSraya’s High Risk Investment in Stocks and Mutual Funds

The Attorney General’s Office suspects that JiwaSraya invests a lot in places that have high risks, such as the investment in shares chosen by JiwaSraya which is worth 5.7 trillion or around 22.4 of the company’s total assets.

Of the total investment in JiwaSraya’s shares, it turned out that only 5% were invested in stocks with good fundamentals or stocks included in the LQ45 Index, while the remaining 95% was included in stocks with poor performance which even reached currently included in the shares whose value has fallen to the lowest level of 50 rupiah per unit share (gocap shares).

Meanwhile, the investment made by JiwaSraya in the Mutual Fund sector totaled 14.9 trillion, of which only 2 percent were managed by investment managers with good performance and the rest managed by investment managers with poor performance.

List of Other Insurances That Failed to Pay

It turns out that the Bumiputera insurance company, which has also been quite well-known for a long time, has also failed to pay 2.7 trillion as of last January 2018.

When viewed from the indicators of financial health or Risk Based Capital, it is also similar to JiwaSraya because it is minus 6 hundreds of percent.

And from the data report, it is also stated that the total assets owned by Bumiputera are only 10.28 trillion, but this company has obligations and debts that must be paid in the amount of 31 trillion.

  • Bakrie Life Insurance Failed to Pay

And long before the above case or to be precise in 2013, the life insurance company Bakrie Life was actually also reported to have failed to pay and fulfill its obligations of up to 270 billion and it was recorded that in 2016 its operating license was revoked by the government.

Watch the video explanation below: