Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)

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Good Corporate Governance: The Key to Recovery for a Defaulted Mutual Insurance Company

Authors
Noor Fatimah Mediawati1, *, L. Budi Kagramanto1, M. Hadi Subhan1, Sri Budi Purwaningsih2, M. Tanzil Multazam2
1Faculty of Law, Airlangga University, Surabaya, Indonesia
2Faculty of Business, Law, and Social Science, Universitas Muhammadiyah Sidoarjo, Sidoarjo, Indonesia
*Corresponding author. Email: noor.fatimah.mediawati-2018@fh.unair.ac.id
Corresponding Author
Noor Fatimah Mediawati
Available Online 22 May 2023.
DOI
10.2991/978-2-38476-052-7_40How to use a DOI?
Keywords
Mutual Insurance; Default; Recovery; Corporate Governance; Solidarity
Abstract

This study aims to analyze the case of AJB Bumiputera 1912, the only mutual insurance company in Indonesia, which defaulted in 2018. Using a statutory and conceptual approach, the researcher shows that there is still a chance for the company to recover. The results indicate that with the restructuring of the company, including a change of directors, AJB Bumiputera 1912 has begun to make improvements. The company must implement good corporate governance principles such as transparency, accountability, independence, fairness, and responsibility. In the new normal era, the solidarity of policyholders, who are the owners of the company, is also crucial. The study implies that the efforts made can impact the conscience of legislators to create laws specifically regulating mutual insurance companies, as Indonesia currently lacks such a law.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
22 May 2023
ISBN
10.2991/978-2-38476-052-7_40
ISSN
2352-5398
DOI
10.2991/978-2-38476-052-7_40How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Noor Fatimah Mediawati
AU  - L. Budi Kagramanto
AU  - M. Hadi Subhan
AU  - Sri Budi Purwaningsih
AU  - M. Tanzil Multazam
PY  - 2023
DA  - 2023/05/22
TI  - Good Corporate Governance: The Key to Recovery for a Defaulted Mutual Insurance Company
BT  - Proceedings of the International Conference on Intellectuals’ Global Responsibility (ICIGR 2022)
PB  - Atlantis Press
SP  - 358
EP  - 366
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-052-7_40
DO  - 10.2991/978-2-38476-052-7_40
ID  - Mediawati2023
ER  -