OJK Reveals No Insurance Company Wants To Be KUPA's Parent
JAKARTA - The Financial Services Authority (OJK) said that until now there has been no insurance company that wants to become the parent company of insurance (KUPA).
Chief Executive of Insurance Supervisory, Guarantee and OJK Pension Fund Ogi Prastomiyono said that insurance companies are still waiting and seeing regarding implementations related to terms of capital increase.
"The company seems to be still waiting and seeing regarding the implementation of the provisions for increasing capital, including KUPA, considering that the deadline for its implementation will only apply at the end of 2026 and 2028," he said in a written response sheet of RDK OJK quoted Thursday, May 16.
Ogi added that several companies have conducted internal discussions and discussed with the OJK for its implementation in 2026 and 2028.
However, said Ogi, until March 2024 there are still several insurance companies that have not fulfilled their minimum equity obligations that will apply for phase 1 in 2026.
For information, KUPA is a consolidation scheme that can be carried out by the company to realize the strengthening of the structure, resilience, and competitiveness of the insurance industry, increasing the company's economic scale and/or facing challenges and demands of technological-based product innovation and insurance or Sharia Insurance services.
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KUPA is one of the solutions or alternatives that can be taken by the Parent Company and/or implementer of the Parent Company which is considered capable of fulfilling the adequacy of company capital and liquidity that is in KUPA by having the advantage of being a shareholder or PSP of a subsidiary in one KUPA.
This is stated in OJK Regulation (POJK) Number 23 of 2023 concerning Business and Institutional Licensing of Insurance Companies, Sharia Insurance Companies, Resurance Companies and Sharia Resurance Companies.