58 Insurance Forms a Consortium for State Property Insurance ~ Insurance Academy

WE Online, Jakarta – The Indonesian General Insurance Association (AAUI) today, Friday (5/7/2019), formed a consortium of State Property Insurance (ABMN) consisting of 52 General Insurance Companies and 6 Reinsurance Companies. This consortium has a total capacity of IDR 1.39 trillion.

“All companies that are members of the ABMN Consortium have met the requirements set by the Ministry of Finance, namely to have minimum own capital of Rp. 150 billion, to have a minimum RBC of 120% and a minimum liquidity ratio of 100%,” said AAUI Executive Director Dody AS Dalimunthe in Jakarta, Friday (5/5). /7/2019).

He explained, there are two parties in this consortium who have their respective functions, namely administrator and policy issuer. The duties of the administrator are those who manage all matters related to the internal administration of the Consortium, both technical and non-technical. While the policy issuer functions to take care of the administration of policy issuance and claims with the insured.

“In this case, the one appointed as the administrator is PT Reasuransi Maipark Indonesia. And the one appointed as the policy issuer is PT Asuransi Jasa Indonesia,” he said.

As is known, the ABMN program regulated by the Minister of Finance Regulation No. 247/PMK.05/2016 which was later amended by Minister of Finance Regulation No. 97/PMK.06/2019, will soon be implemented in 3 stages.

The first phase (piloting) is expected to be carried out in August 2019 on the assets of the Ministry of Finance with a value of Rp. 11.4 trillion, the second phase in 2020 is implemented in 40 Ministries and Institutions, in 2021 the full implementation of the ABMN program is planned in all ministries and institutions with an estimated value of up to IDR 270 Trillion.

The Rp270 trillion figure only represents ABMN objects in the form of buildings and buildings, it does not rule out the possibility of this ABMN program in the future being expanded to objects other than buildings and buildings so that the ABMN value will be much greater.

On this basis, AAUI proposes that the handling of ABMN must be carried out together in the form of a consortium to avoid unfair business competition practices and to optimize domestic capacity.

This Consortium Scheme has also been coordinated by DJKN to KPPU and LKPP and received a positive response in the sense that the proposed scheme does not conflict with the applicable legal provisions, both regarding business competition and provisions for the procurement of government goods and services.

Source; Economic News