TEMPO.CO, Jakarta - The National Bank Association (Perbanas) reminded the banking industry to improve risk management and prudential policies following the default of Jiwasraya's insurance bancassurance product, JS Saving Plan.

"Banks are required to conduct an assessment related to the products they will sell. The risk management must be able to detect whether a partner company is feasible and has good performance," Perbanas' head of study and development division Aviliani told Tempo yesterday.

The JS Saving Plan was first issued in 2012. The investment insurance plan offered a return of 9-13 percent.

The case has dragged down seven banks that acted as sales agents for the product: BRI, Standard Chartered Bank, BTN, KEB Hana, QNB Indonesia, ANZ Indonesia, and Bank Victoria.

Since Jiwasraya announced it was unable to pay claims worth Rp802bn in October 2018, policyholders have not received any certainty about the when their investments would be returned.

Aviliani said that consumer protection must be a top priority, as the financial services business is very dependent on consumers' trust.

"When ignored, it could cause reputation damage and eliminate consumers' ris of the banks," she said.

Banks are also encouraged to provide clear dissemination explaining their roles and responsibilities to customers when acting as sales distribution agents.

FAJAR PEBRIANTO | GHOIDA RAHMAH