LEARNING FROM LIFE BAKRIE, Philosophy Ignore Insurance Industry

InfoBank Research Bureau Chief Eko B. Supriyanto, Thursday (1 / 10) in Jakarta, said that, despite the increase, it must be admitted that so far the Indonesian people are still reluctant to buy products because they feel loss insurance to pay premiums. "Usually people just do not feel loss pay premiums or to realize the importance of insurance as being ill or have accidents," said Eko. To address the public mind that Indonesia is still like that, go Eko, insurance companies in Indonesia to create insurance products combined with investment products. This product is attractive to the public because the investment yield so that the premium paid is considered not in vain in the future if the policyholder does not suffer from illness or a disaster. In fact, insurance companies competing to impress gives high yield, such as insurance products offered by Investa Bakrie Diamond Life, which is 13 percent per year. In that case, go Eko, both insurance companies and the people who buy a product that has violated the philosophy of insurance products as protection or protection against life, health or property. "To get the protection it must have cost a premium. This is to be delivered to the public. Not by manipulating the public mind which is still considered a loss to pay the premium, "said Eko. Bakrie Life insurance company in 2005 launched the Diamond Investa, a combination of life insurance products and investments. This product offers investment yields high enough, which is about 1 percent per year. To be able to give that much interest, Bakrie Life to invest more than 80 percent of customer funds in the stock market. Fall of stock prices following the global crisis of late 2008 resulted in Bakrie Life substantial losses. Since July last, Bakrie Life can not pay interest and principal investments maturing customers due to liquidity problems. Besides demanding the return of investment principal as soon as possible, the customer also protested Life Bakrie management policies that invest 80 percent more funds in the stock market. According to some customers, the previous management Bakrie Life declared 90 percent of customer funds will be invested into the bond market, 5 percent of the shares, and 5 percent in the form of deposits. Bakrie Life Director Timoer Soetanto said, what the management of Bakrie Life to invest 90 percent of customer funds in bonds are not binding and is not in agreement. Therefore, loss of Bakrie Life in the stock investment is the responsibility of the Company. But when the composition of the placement of customer funds provided for in the agreement and corporate customers, Timoer said the investment losses will be borne by the customer. Such agreements usually are on the unit-linked insurance products. Timoer added, the company policy to place more than 80 percent of customer funds in the stock market does not violate the rules of the Capital Market Supervisory Agency and Financial Institution. What is important, customer funds are placed in one type of stock no more than 20 percent. Bakrie Life can not specify when the customer funds can be refunded. Scheduling customers fund payment mechanism is being arranged direct management rejected its customers and request funds be paid as soon as they have matured (REI).