The company is subject to changes in economic conditions and business operations, which may adversely affect the company’soverall risk profile. Changes may occur from both internal and
external factors, including economic and industrial conditions,laws, regulations and change of the company operations.The company is therefore required to set policies, operation and
appropriate control to manage significant risks associated with the company’s business operations. Establishing effective internal controls, under a strong control environment, is a key element of good
governance. One of the company’s obligations to the shareholders,policy holders, creditors and regulators are creating confidence for such individuals. The Company has a good internal control system and significant risks are managed with care and due diligence.
Internal control refers to policies and processes designed and practiced to build the confidence that the company will achieve the following objectives.
• Effective and efficient operation.
• Financial reports are reliable.
• Compliance of rules and policies
Structural control and operational procedures
The company has clearly structured the management of each unit. There are subdivisions and decentralized management in each hierarchy. The administration and risk management has been properly considered.
Company’s Business Operation
The business operation of the Company is divided into
The main business of the Company is personal accident and health insurances.
• Direct insurance – Insurance through agents, brokers, legal entity brokers, and directly to prospects
• Reinsurance from other insurance companies.
Insurance companies can take cash to invest or seek return as another way to earn income. The investment must be made in line with the acceptable level of risk and the liquidity of the portfolio of investments
in cash that the company uses in the future adequately. The company must comply strictly with the type, proportion and conditions regulated by laws under the provision regarding investment in accordance with the Notification of the OIC re: investment in other businesses of insurance companies 2013 – Loans, investment in securities, bill of exchange, bonds, ordinary shares, debentures, as well as deposits with banks.