Product Code: GDIS0031RR
The Financial Services Authority (Otoritas Jasa Keuangan - OJK) regulates the Indonesian insurance industry. The OJK is an independent financial institution established in 2011, and assumed the role of insurance industry regulator on January 1, 2013. The OJK also regulates the banking, capital market and non-banking financial companies in the Indonesian financial sector. It regulates the insurance industry according to rules and regulations specified in the Insurance Law 2014, which replaced Insurance Law of 1992 effective from October 17, 2014.
In addition to the law, government has introduced various resolutions in order to regulate the country's insurance industry. The main responsibility of the OJK is to protect the rights and interests of policyholders and generate confidence in the financial market. It is also responsible for the general administration of legislation governing the insurance industry.
- The OJK is the government regulatory body supervising and regulating the insurance industry of Indonesia
- The government permits 80% FDI in the Indonesian insurance industry
- The Insurance Law 1992 was repealed and replaced by the new Insurance Law 2014
- The placement of non-admitted insurance is not permitted in the Indonesian insurance industry
- Composite insurance is not permitted in Indonesia
The report "Governance, Risk and Compliance - The Indonesian Insurance Industry", is the result of extensive research into the insurance regulatory framework in the Indonesia. It provides detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries.
The report brings together research, modeling and analysis expertise, giving insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.
The report provides -
- An overview of the insurance regulatory framework in the Indonesia
- The latest key changes, and changes expected in the country's insurance regulatory framework
- Key regulations and market practices related to different types of insurance product in the country
- Rules and regulations pertaining to key classes of compulsory insurance, and the scope of non-admitted insurance in the Indonesia
- Key parameters including licensing requirements, permitted foreign direct investment, minimum capital requirements, solvency and reserve requirements, and investment regulations
- Details of the tax and legal systems in the country
- The report covers details of the insurance regulatory framework in the Indonesia.
- The report contains details of the rules and regulations governing insurance products and insurance entities.
- The report lists and analyzes key trends and developments pertaining to the country's insurance regulatory framework.
- The report analyzes the rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
- The report provides details of taxation imposed on insurance products and insurance companies.
Reasons to buy
- Gain insights into the insurance regulatory framework in the Indonesia.
- Track the latest regulatory changes, and expected changes impacting the Indonesian insurance industry.
- Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
- Understand key regulations and market practices pertaining to various types of insurance product.
Table of Contents
- 1 INTRODUCTION
- 1.1 What is this Report About?
- 1.2 Definitions
- 2 GOVERNANCE, RISK AND COMPLIANCE
- 2.1 Legislation Overview and Historical Evolution
- 2.2 Latest Changes in Regulation
- 2.3 Legislation and Market Practice by Type of Insurance
- 2.3.1 Life Insurance
- 2.3.2 Property Insurance
- 2.3.3 Motor Insurance
- 2.3.4 Liability insurance
- 2.3.5 Marine, aviation and transit insurance
- 2.3.6 Personal accident and health insurance
- 2.4 Compulsory Insurance
- 2.4.1 Workmen compensation insurance
- 2.4.2 Professional indemnity insurance for insurance brokers
- 2.4.3 Liability for ships with respect to oil pollution
- 2.4.4 Domestic air carrier's liability insurance for passenger injury or death
- 2.5 Supervision and Control
- 2.5.1 International Association of Insurance Supervisors
- 2.5.2 Financial Services Authority
- 2.5.3 The General Insurance Association of Indonesia (Asosiasi Asuransi Umum Indonesia)
- 2.5.4 The Indonesian Life Insurance Association (Asosasi Asuransi Jiwa Indonesia)
- 2.5.5 The Indonesian Insurance Council (Dewan Asuransi Indonesia)
- 2.6 Non-Admitted Insurance Regulation
- 2.6.1 Overview
- 2.6.2 Intermediaries
- 2.6.3 Market practices
- 2.6.4 Fines and Penalties
- 2.7 Company Registration and Operations
- 2.7.1 Type of insurance organization
- 2.7.2 Establishing a local company
- 2.7.3 Foreign ownership
- 2.7.4 Types of license
- 2.7.5 Capital requirements
- 2.7.6 Solvency margin
- 2.7.7 Reserve requirements
- 2.7.8 Investment regulations
- 2.7.9 Statutory return requirements
- 2.7.10 Fee structure
- 2.8 Taxation
- 2.8.1 Insurance premium or policy taxation
- 2.8.2 Withholding taxes on premium paid overseas
- 2.8.3 Corporate tax
- 2.8.4 VAT
- 2.8.5 Captives
- 2.9 Legal System
- 2.9.1 Introduction
- 2.9.2 Access to court
- 2.9.3 Alternative dispute resolution (ADR)
- 3 APPENDIX
- 3.1 Methodology
- 3.2 Contact GlobalData
- 3.3 About GlobalData
- 3.4 GlobalData's Services
- 3.5 Disclaimer
List of Tables
- Table 1: Insurance Industry Definitions
- Table 2: Indonesia - Insurance Regulatory Framework Key Features
- Table 3: Indonesia - Minimum Amount of Automatic Reinsurance Support (Treaty Reinsurance)
- Table 4: Indonesia - Minimum Amount of Aut
List of Figures
- Figure 1: Indonesia - Insurance Supervision and Control at Various Levels
- Figure 2: Indonesia - Insurance Regulatory Frameworks for Company Registration and Operation