The customer policy restructuring process of financially-stricken state-owned life insurer Asuransi Jiwasraya is approaching its final stage.
It is understood that more than 80% of Jiwasraya s customers have agreed to join the restructuring programme.
Jiwasraya, with the support of the government, seeks to reduce its losses and to maintain policy benefits for 2.5m Jiwasraya customers, reported
Kontan. However, as of the end of 2020, Jiwasraya s equity was negative at IDR38.64tn ($2.7bn), and the solvency ratio stood at -1,000.3%.
The restructuring programme involves the migration of Jiwasraya s policyholders and their policies to IFG Life, which was set up to resolve Jiwasraya s outstanding obligations to customers. IFG Life, established by the Ministry of State Owned Enterprises (BUMN Ministry), received its operating licence in April. The new insurer received an injection of funds from the government of IDR20tn.