ID :
36177
Wed, 12/17/2008 - 18:48
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https://www.oananews.org//node/36177
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BAPEPAM-LK TO LIMIT TYPES OF INSURANCE FIRMS` INVESTMENT
Jakarta, Dec 17 (ANTARA) - The Capital Market and Financial Institutions Supervisory Board (Bapepam-LK) said Wednesday it will soon restrict the types of insurance companies' investment to avoid possible losses.
"No later than the end of this year we will issue a regulation restricting the types of insurance companies' investment," the head of the board's insurance bureau, Isa Rachmatarwata, said.
As a capital market regulatory body, Bapepam-LK had the authority to restrict the types of insurance companies' investment particularly in shares, bonds and the like, he said.
"In the current practice, (insurance companies) can invest in shares and bonds more freely. Some of them are so aggressive that their investment in shares and bonds exceeds the insurance industry's average investment in the financial instruments," he said.
A slump in the prices of shares and bonds as a result of the global financial crisis had caused investors to suffer huge losses and therefore, insurance companies' investment in shares and bonds should draw attention, he said.
He said the board was also proactive in controlling insurance companies' products which copy deposits and savings.
Asked what measure the agency would take against insurance companies making huge investment in shares and bonds, he said he would ask them to review their cooperation with third parties soon.
"No later than the end of this year we will issue a regulation restricting the types of insurance companies' investment," the head of the board's insurance bureau, Isa Rachmatarwata, said.
As a capital market regulatory body, Bapepam-LK had the authority to restrict the types of insurance companies' investment particularly in shares, bonds and the like, he said.
"In the current practice, (insurance companies) can invest in shares and bonds more freely. Some of them are so aggressive that their investment in shares and bonds exceeds the insurance industry's average investment in the financial instruments," he said.
A slump in the prices of shares and bonds as a result of the global financial crisis had caused investors to suffer huge losses and therefore, insurance companies' investment in shares and bonds should draw attention, he said.
He said the board was also proactive in controlling insurance companies' products which copy deposits and savings.
Asked what measure the agency would take against insurance companies making huge investment in shares and bonds, he said he would ask them to review their cooperation with third parties soon.
