Evaluation of Dynamic Capabilities in Insurance Institutional Mergers: A Case Study of PT. Asuransi Bhakti Bhayangkara (ABB)'s Consolidation Strategy Under the Regulatory Pressure of POJK No. 23 of 2023
DOI:
https://doi.org/10.55927/modern.v4i6.9Keywords:
Dynamic Capabilities, Insurance Mergers, POJK 23/2023, Institutional, Strategic SynergiesAbstract
This article uses a dynamic capability approach as the main framework to evaluate the institutional readiness of PT. Asuransi Bhakti Bhayangkara (ABB) in facing the regulatory pressure of POJK No. 23 of 2023, which requires a minimum equity of IDR 250 billion for general insurance companies. Considering two strategic partner candidates —Citra Insurance Underwriter (CIU) and Asuransi Bosowa (BOW) —the analysis was conducted through three dimensions of dynamic capabilities: sensing (the ability to read regulatory directions and market opportunities), seizing (the ability to develop synergy strategies and mobilize resources), and transforming (the ability to carry out institutional reorganization and cultural integration). The evaluation results show that although CIU excels in vertical synergy and technological readiness, BOW offers a more flexible semi-holding structure that is in line with ABB's managerial preferences, including a commitment to separate liability responsibilities. This article contributes to the development of regulatory pressure-based merger studies, which are still rarely discussed in Indonesian insurance industry literature, and provides direction for further research related to post-merger dynamic capability audits, the effectiveness of semi- holding structures, and the strengthening of institutional synergies in the financial services sector
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