Cooperation With The Korea Insurance Development Institute, OJK: For The Strengthening Of The Insurance Sector In Indonesia

The memorandum of OJK's understanding with KIDI was signed by Ogi Prastomiyono with the Chairman/CEO of KIDI Chang-Eon Heo in Seoul, Wednesday (6/12). (Doc. OJK)

JAKARTA - The Financial Services Authority (OJK) is collaborating with the Korea Insurance Development Institute (KIDI) for the development of insurance, especially in strengthening financial infrastructure.

Chief Executive of Insurance Supervisory, Guarantee and OJK Pension Fund Ogi Prastomiyono said that the agreement was reached as outlined in the memorandum of understanding and was a form of strategic collaboration between OJK and KIDI which aims to increase cooperation, especially in developing risk profile databases and determining insurance premium rates.

As well as aimed at joint-research, capacity building in the field of insurance, data exchange and information, as well as other collaborations related to the development of the insurance industry.

"OJK believes that the synergy between OJK and KIDI will make a positive contribution in strengthening the insurance sector in Indonesia and Korea," he said in his official statement Saturday, December 9.

Ogi said that one of the most crucial issues in the Indonesian insurance industry is unhealthy market competition, which encourages insurance companies to set inadequate premiums for insurance benefits payments.

For this reason, in accordance with international practices, OJK realizes that it is necessary to immediately establish an independent premium tariff setting institution, which is specifically tasked with developing and managing the risk profile database of the Indonesian insurance industry.

Through cooperation between OJK and KIDI, Ogi hopes that his party can enrich understanding and insight in terms of the best practices from Korea as a country that has succeeded in forming an independent institution that plays a role in encouraging the development of the insurance industry sector, especially in terms of database management and setting insurance premium rates.

Memoran Kesepahaman dengan KIDI mulai berlaku pada 1 Januari 2024 untuk jangka waktu selama dua tahun dan secara otomatis akan diperpanjang selama satu tahun jika para pihak menyetujukannya.