The government required all licensed general insurance and reinsurance companies operating in Indonesia to cooperate in insuring special risks through a joint undertaking of all companies. The vehicle for this undertaking was the Indonesian Earthquake Reinsurance Pool or Pool Reasuransi Gempa Bumi Indonesia (PRGBI). Participating in the Earthquake Pool was made compulsory for all general insurance and reinsurance companies. The PRGBI began operations from 1st January 2003. At the same time a compulsory earthquake tariff was introduced and endorsed by the government. With effect from 1st January 2004 the PRGBI was transformed into a public liability company, PT. Asuransi MAIPARK Indonesia. MAIPARK is an abbreviation for Maskapai Asuransi Indonesia (MAI) and Perusahan Asuransi Risiko Khusus (PARK). MAI was the oldest General Insurance Company in Indonesia and its license was purchased by 32 founding shareholders on 23rd December 2003 at a General Shareholder Meeting. Besides its function as a reinsurer MAIPARK engages in research support, education of the public about natural disaster, risk mitigation and more stringent and safer construction standards and building codes.
