OJK: Roadmap For Insurance Efforts For Industrial Reform

JAKARTA - The Financial Services Authority (OJK) stated that the preparation of the Indonesian Insurance Development and Strengthening Roadmap 2023-2027 is an effort to reform the national insurance industry.

Chief Executive of the Insurance, Guarantee and Retirement Supervisory Fund of the Financial Services Authority (OJK) Ogi Prastomiyono said the insurance industry had not carried out a significant reform since the 1997-1998 crisis.

"That's why we took the initiative together with stakeholders to develop this insurance roadmap," said Ogi Prastomiyono quoting Antara.

He conveyed that the implementation of the roadmap was divided into several stages. The first phase to be implemented in 2023-2024 is strengthening the industrial foundations and improving various existing shortcomings so as not to hinder the implementation of the roadmap.

The second phase in 2025-2026 includes industrial consolidation efforts, equitable insurance services, and synergy of commercial insurance, social insurance, and mandatory insurance.

He said that in the second phase there was also a deadline for industry players to start implementing several new regulations, such as the Statement of Financial Accounting Standard (PSAK) 117 Insurance Contracts on January 1, 2025 and the sharia unit spin-off at the end of 2026.

"Then in the third phase, namely adjustment and growth, including here is the implementation of the policy rescue program in 2028, expansion of penetration and density, and synergy in the insurance ecosystem," said Ogi.

Not only through the preparation of road maps, he said that strengthening the insurance industry also needs to be done by increasing consumer confidence by strengthening insurance literacy.

He said it was important for consumers to understand the benefits and risks of the products they bought, so now there is a new campaign movement in the insurance industry with the tagline Pahami and Asuransi.

"Menyadari bahwa trust masyarakat dan publik cukup terganggu dengan isu-isu (fraud) yang berkembang, maka kami bersama-sama dengan asosiasi melakukan campaign untuk restoring the industry confidence melalui pro-industrial reform," kata Ogi.

One of the reform efforts made is to simplify licensing-related regulations for new insurance products.

He said that now only certain and complex products such as link units, credit insurance, and insurance with cash value have been obtained from the OJK, while others only need to be reported to the institution.

"Although licensing from the OJK is not required, the reported insurance products must obtain company internal approval, including approval from the product committee that must exist in every insurance company," added Ogi.