Not Giving Slack, Financial Services Authority Revokes Business License Of PT Asuransi Jiwa Prolife Indonesia

JAKARTA - The Financial Services Authority (OJK) revoked the business license of PT Asuransi Jiwa Prolife Indonesia, formerly known as PT Asuransi Jiwa Indosurya Sukses on November 2, 2023, as part of the OJK supervision because within the time limit of special supervision status, Prolife was unable to resolve the problem.

Chief Executive of Insurance Supervisory, Guarantee and OJK Pension Fund Ogi Prastomiyono said that the revocation of PT Asuransi Jiwa Prolife's business license was carried out in the context of implementing the provisions of laws and regulations consistently and firmly to create a healthy and reliable insurance industry, as well as protecting the interests of insurance policyholders.

"Before the decision to revoke the business license, the OJK had imposed a Sanction on Restrictions on Business Activities (SPKU) because Prolife was unable to meet the minimum provisions for the ratio of solvency, equity and investment adequacy ratio," he explained in his statement, Sunday, November 5.

OJK has also provided sufficient time for Prolife to complete SPKU by requiring the Company to develop a Financial Restructuring Plan (RPK), but Prolife is unable to convey the RPK which can overcome the company's fundamental problems.

However, the RPK with the Policy Holder Buy Out (PBO) scheme is planned to fail because it does not get support from all policyholders and does not realize the additional capital from new shareholders or investors.

Consumer protection efforts are also carried out by OJK by several times facilitating consumer complaints, namely bringing together policyholders with Prolife to get a consumer complaint settlement.

In addition, OJK has also provided education in several cities to policyholders about the benefits and risks of the PBO scheme.

With the revocation of the business license, Prolife is obliged to stop its business activities and within a maximum period of 30 days it is mandatory to hold a general meeting of shareholders for the disbandment of legal entities and the formation of a liquidation team.

Since the revocation of business licenses, shareholders; directors; board of commissioners; and Prolife employees are prohibited from diverting, guaranteeing, building, or using wealth, or taking other actions that can reduce assets or reduce the value of the Company's assets.

Policyholders can still contact the company's management in the context of consumer services until the Liquidation Team is formed. The Liquidation Team is then tasked with cleaning up assets and completing obligations, including obligations to policyholders.