WanaArtha Life Speeds Up New Investor Entry Process

Photo: Doc. PT Asuransi Jiwa Adisarana Wanaartha (WanaArtha Life)

JAKARTA - The management of PT Asuransi Jiwa Adisarana Wanaartha (WanaArtha Life) ensures that it will prioritize the interests of customers or policyholders. In addition to trying to pay due claims obligations, management also stated that they are speeding up the process of entering new investors to save the company in accordance with the provisions of the Financial Services Authority (OJK).

WanaArthaLife Health Consultant Kukuh K Hadiwidjojo, Friday, April 22, said that the financial recovery process for an insurance company that has been operating for a long time is not an easy matter. Moreover, WanaArtha's market penetration in the insurance industry is already very deep.

However, according to him, this should not be an obstacle to improving WanaArtha Life's financial condition, so that payment obligations to customers or policyholders can be carried out properly.

According to him, currently there are several strategic investors who are interested in WanaArtha. Negotiations with investors are currently underway.

"The process with new investors continues. We always follow OJK's instructions, especially WanaArtha is under special supervision," said Kukuh at a press conference in Jakarta, Friday, April 22.

If an agreement has been reached, said Kukuh, investors will carry out due diligence or fit and proper tests at the OJK.

"If there is an agreement, they will do their due diligence. So far there are more than one potential investor. Some have already made a Letter of Intent, it is quite advanced. It's just a matter of who can enter first to save WanaArtha's finances. We prioritize the interests of policyholders," he said. .

If nothing goes wrong, Kukuh targets the process with investors to be completed by July 2022.

"This is a rational target. Hopefully after Idul Fitri, between May and June we can do our due diligence. We hope it will be completed by July," he said.

Retained assets

At present, the obstacle that has emerged and is considered by investors is the retention of customer funds worth IDR 2.7 trillion which was also confiscated by the Attorney General's Office.

As is known, the WanaArtha securities account itself was blocked by the AGO on January 21, 2020, because it was said to be related to a corruption case (tipikor) from PT Asuransi Jiwasraya (Persero).

In addition to disrupting claims or cash value benefits to customers, the withholding of such large funds disrupts the negotiation process with investors. Wanaartha is known to have sent a letter of application to the Attorney General's Office for the securities account to be returned

"Current claims payable compared to the end of last year will definitely increase. But with assets still on hold, the company has not been able to pay off its maturing claim obligations," said Yanes Y. Matulatuwa, President Director of WanaArtha Life.

This also makes it difficult for companies to calculate solvency or the ratio used to measure the insurance company's ability to cover all of the company's obligations in a timely manner.

"Returning to OJK regulations, companies whose assets are confiscated cannot be included in the calculation of Risk Based Capital (RBC)," he said.

Kukuh continued, currently WanaArtha is fighting for the return of the confiscated assets through a court process. WanaArtha won the decision at the first instance court, but then proceeded to an appeal trial at the Supreme Court.

"Currently it is in the process at the Supreme Court and we submit it and we follow the entire process in accordance with legal procedures in Indonesia, and we will also continue to respect any decision from the Supreme Court," he explained.

Meanwhile, even though the company's financial condition is not yet healthy, WanaArtha Life's Director of Operations Adi Yulistanto ensures that claim payments will still be made even though it is not as big as in normal times.

"We have made payment of obligations in an emergency situation based on a priority scale since the beginning of April 2022," said Adi.

The emergency payment program in question is prioritized to policyholders by prioritizing the humanitarian side such as death, accident or illness. So far, the number of policyholders who have submitted claims with this scheme is 9 people with a value of IDR 175 million.

"That is the priority where the board of directors has made a decision, made an acceptable criteria, especially because of the accident," he said.

Furthermore, payment efforts will continue to be carried out on an ongoing basis, while taking into account the company's financial condition. "Policyholders who do have or can meet these criteria with the specified conditions, can also apply to the company while still paying attention to the company's financial condition," he added.

To note, until now, OJK is still imposing sanctions on business activity restrictions (PKU) to WanaArtha Life which has been set since October 27, 2021. Adi said that until now the management continues to be supervised by OJK.

"OJK gave us a Supervisory Letter and asked us to continue to monitor our improvement efforts. We have to report it on the 15th of every month. We hope that with the entry of investors, this company is worthy and should continue its business activities and fulfill its obligations to policyholders," said Adi .