We proudly share that the recent development particularly since the final quarter of 2013 revealed that the pre-emptive and decisive policy action carried out by Bank Indonesia and the Government has successfully steered the economy to the right track. In the last two months inflation remains under control and expect could be brought back to its target corridor of 4.5%±1% in 2014 (Graph 1).
It will be up to the insurance firms to live up to them. In this governance framework, Solvency II requires insurance undertakings to conduct their own risk and solvency assessment. Such a requirement will be familiar to Irish insurers, through the Central Bank of Ireland insistence that boards define their risk appetite and formulate an explicit statement around it.