On 8 April 2014, the Financial Services Authority
(OJK) issued Regulation No. 2/POJK05/2014 of 2014
on Good Corporate Governance for Insurance Companies
(Regulation 2).
Loss and life insurance companies, as well as reinsurance
companies must have at least 3 directors and 3 commissioners.
Meanwhile, insurance and reinsurance brokerage firms are required
to have 2 directors and 2 commissioners if their annual income
exceeds IDR 10 billion.
Directors of insurance companies must be domiciled in Indonesia,
but Regulation 2 only requires half of the board of commissioners
to be domiciled in Indonesia.
Additionally, insurance companies and reinsurance companies and
reinsurance companies that apply sharia principles to their
business activities must establish a Board of Sharia Supervisors.
All directors, commissioners and members of the Board of Sharia
Supervisors are required to pass OJK's fit and proper test
before their appointment.
