OJK Optimistic Insurance Industry Ready To Implement PSAK 74 In 2025

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) is optimistic that the insurance industry is ready to implement the 74 Financial Accounting Standard (PSAK) on Insurance Contracts on January 1, 2025.

Chief Executive of Insurance Supervisory, Guarantee Institution, and OJK Pension Fund Ogi Prastomiyono admitted that there are still a number of obstacles in the industry that need more attention, especially regarding the readiness of the information system. However, OJK remains optimistic that PSAK 74 can be implemented on time.

"With the establishment of the Steering Committee (SC) and the PSAK 74 Implementing Team, OJK is optimistic that these obstacles can be overcome properly," Ogi said as quoted by Antara, Tuesday, June 6.

Ogi explained, OJK targets the insurance industry to be able to balance the initials using PSAK 74 by the end of 2024.

Currently, Ogi continued, OJK sees that the majority of insurance companies have been able to draw up the initial balance sheet.

Meanwhile, for 2023, OJK targets insurance companies to complete the construction of systems and information technology to implement PSAK 74.

Ogi said OJK had also asked several insurance companies to simulate and calculate the impact of the implementation of PSAK 74 on the insurance company's financial statements.

Until now, he continued, OJK assessed that the insurance company that implemented the initial PSAK 84 was able to provide the PSAK 74 version of the financial report adequately.

OJK does not see any insurance companies experiencing significant difficulties in the initial implementation.

Nevertheless, OJK is still trying to finalize the implementation of PSAK 74, one of which is by preparing the right legal umbrella so that the implementation of PSAK 74 is also in accordance with existing regulations.

It is known that the OJK has formed SC and the PSAK 74 Implementing Team which consists of various parties, ranging from industry, professional associations, government, and others.

The team is generally tasked with overseeing so that the insurance industry can implement PSAK 74 properly and on time.