Evil Insurance Rises, OJK Must Optimize Law Enforcement And Literacy

Illustration of OJK (Photo: Doc. Antara)

JAKARTA - A number of insurance cases are still in the spotlight today. Not a few customers harmed by the insurance company. Therefore, supervision and firmness in law enforcement are needed. In addition, customer literacy towards insurance and its products must also be increased.

Senior researcher at the Center for Public Policy and Legal Studies (Puskapkum) Panti Rahayu said the phenomenon of rogue insurance companies must be taken seriously.

According to her, the Financial Services Authority (OJK), which is the leading sector in supervising the banking industry and non-bank financial institutions, should increase supervision to provide legal certainty, especially for customers.

"OJK's work must be more optimized in supervising the non-banking financial industry, especially insurance. Various problems in the insurance industry are a serious alarm, they must be addressed from upstream to downstream," Panti said through her official statement, quoted on Thursday, 9 February.

Panti added, in addition to monitoring the insurance industry, law enforcement against those who commit violations and harm customers must also be subject to legal sanctions.

She considered law enforcement to give a deterrent effect on those who violate the applicable rules. "Law enforcement is in the same breath, providing protection to customers and the public. Law enforcement must be transparent and fair," she said.

Furthermore, said Panti, after the enactment of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), which among other things regulates the authority of the Deposit Insurance Corporation (LPS) as guarantor for insurance customers, it is a step to provide protection for customers and prospective customers.

"Of course, LPS accepts healthy, credible, and trusted insurance companies. LPS has a big responsibility as an insurance and banking deposit guarantor. Be careful, this is a matter of large amounts of money," she said.

In addition, Panti reminded customers and prospective customers to improve literacy, especially in the insurance industry. According to her, customer literacy is the key to choosing healthy and credible insurance.

"Literacy is of course the key. You have to look at the track record of insurance, don't be tempted by the lure of benefits, it needs to be checked again in more detail," she said.