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Two large Indonesian insurance companies in financial difficulty
17 Jan 2020 (32 views)

My friend told me that two large state-owned insurance companies in Indonesia are in financial difficulty.

They issue "investment policies" that guaranteed a high rate of return, more than 10% per annum, and invest the money in speculative investments. The yield on govt bonds is only 7%.

The amount of money lost is huge.

When I heard about these products a few years ago, I told my client that this is "madness". The regulator should not allow it. Why does the govt take so long to realize it?

https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/49783/type/eDaily/Indonesia-Call-for-government-audit-of-all-state-owned-insurers-pension-funds
 


Two large Indonesian insurance companies in financial difficulty
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My friend told me that two large state-owned insurance companies in Indonesia are in financial difficulty.

They issue "investment policies" that guaranteed a high rate of return, more than 10% per annum, and invest the money in speculative investments. The yield on govt bonds is only 7%.

The amount of money lost is huge.

When I heard about these products a few years ago, I told my client that this is "madness". The regulator should not allow it. Why does the govt take so long to realize it?

https://www.asiainsurancereview.com/News/View-NewsLetter-Article/id/49783/type/eDaily/Indonesia-Call-for-government-audit-of-all-state-owned-insurers-pension-funds