A new law on insurance is expected to be passed by the House and
will replace the 1992 Law. The scope of the current bill on
Insurance Business covers general insurance (conventional and
Sharia), life insurance (conventional and Sharia), re-insurance
(conventional and Sharia), insurance brokers, re-insurance brokers
and loss adjusters. This scope may be broadened by the Indonesian
Financial Services Authority (Otoritas Jasa Keuangan – OJK)
according to the needs of the market. Insurance business licenses
will be issued by the OJK. The draft bill also provides protection
for insurance policy holders, to be managed by the Deposit
Guarantee Agency (Lembaga Penjamin Simpanan). The draft bill also
states that insurance and re-insurance companies (both conventional
and Sharia) must be members of an independent and impartial
mediation agency to settle disputes with insurance policy holders
or beneficiaries. We will keep you informed of further details.
