Previously, Indosurya, OJK Revoked The Prolife Insurance Business License After Changing Its Name

JAKARTA - The Financial Services Authority (OJK) revoked the business license of PT Asuransi Jiwa Profile Indonesia. This is because within the time limit of special supervision status, Prolife is unable to resolve the problem.

As is known, since October 16, 2023, the name PT Indosurya Sukses has changed its name to PT Asuransi Jiwa Prolife Indonesia.

Chief Executive of the Insurance, Guarantee and Retirement Supervisory Fund of the Financial Services Authority (OJK) 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," said Ogi quoting Antara.

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, guaranteeing, 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 tasked with cleaning up assets and completing obligations, including obligations to policyholders.

Before the decision to revoke the business license, the OJK imposed a Sanction on Restrictions on Business Activities (SPKU) because Prolife was unable to meet the minimum provisions of the solvency achievement ratio, equity and investment adequacy ratio.

OJK also provides sufficient time for Prolife to resolve SPKU by requiring companies to develop a Financial Restructuring Plan (RPK) that is able to solve 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.

OJK also gave Prolife the opportunity to deliver improvements to the RPK, but Prolife was unable to convey the RPK which could overcome the company's fundamental problems.

In addition to revocation of business licenses, in an effort to protect consumer interests, policyholders, and/or beneficiaries, the OJK has issued a written order ordering Prolife Controlling Shareholder Henry Surya to immediately compensate the company.

The written order must be carried out no later than three months from the date of the letter and there are criminal consequences if the written order is deliberately ignored and/or not implemented.

Consumer protection efforts are also carried out by OJK by facilitating consumer complaints several times, namely bringing together policyholders with Prolife to get a consumer complaint settlement. In addition, OJK also provides education in several cities to policyholders about the benefits and risks of the PBO scheme.