OJK Disbursed Two Insurance Companies Separate Sharia Units In 2024

JAKARTA - The Financial Services Authority (OJK) revealed that there are two insurance companies that will separate their sharia units in 2024 by establishing a new company.

"From the two companies, one company has applied for a new sharia insurance business license to the OJK, while one company will apply for a business license in December 2024," said OGI Prastomiyono, Chief Executive of the Insurance, Guarantee and Pension Fund, quoting Antara.

In accordance with the company's sharia unit separation (RKPUS) work plan, notes Ogi, one company that has applied for a business license is targeted to be able to complete the spin-off by the end of this year.

Meanwhile, one company that will only apply for a business license in December 2024, Ogi said that the spin-off process will only be completed by 2025.

Overall, in accordance with the RKPUS submitted by the company based on POJK 11 of 2023, Ogi said that a total of 30 companies would spin-off sharia units by establishing new companies.

Meanwhile, insurance companies that will spin-off sharia units by diverting portfolios to other sharia insurance companies are recorded at 11 companies.

Of the 11 companies, there is one company that will transfer the portfolio at the end of 2023 and three companies that will transfer the portfolio in 2024.

As for one company that began to transfer its portfolio at the end of 2023, it has now completed the transfer of its portfolio and the OJK is conducting an analysis to ensure that the transfer of the portfolio is in accordance with statutory regulations.

Meanwhile, three companies that will transfer the portfolio in 2024, according to the RKPUS, two companies will start transferring the portfolio to the third quarter of 2024 and one company will transfer the portfolio to the fourth quarter of 2024.

In accordance with the RKPUS, for the three companies that will transfer the sharia unit portfolio in the second semester of 2024, it is targeted that the portfolio transfer will be completed in the first semester of 2025.

In the transfer of the portfolio, apart from diverting liabilities, the company also transferred assets to companies that received the transfer of portfolios.

According to Ogi, the potential difficulty finding a company may occur if there are no companies that have similar products to products that will be diverted.

Ogi conveyed that OJK has communicated with companies that will spin-off by diverting portfolios to other sharia insurance companies to ensure that they can complete the spin-off according to the time limit.

If in the end the company cannot complete the spin-off according to the time limit, based on POJK 11 of 2023, the OJK revokes the company's sharia unit permit and the company in question is obliged to complete all its obligations to policyholders.

The settlement of these obligations must also be with the approval of policyholders and not detrimental to the rights of policyholders.