Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Robert Sidauruk
Financial Services Authority (OJK) is currently discussing the completion of a regulation on flood risk insurance premiums. Prior to this plan, the Indonesian Insurance Association (AAUI) regulated this matter under Decree No. 02/AAUI/2013 (Decree).
However, AAUI has cancelled the Decree’s applicability after the Commission for the Supervision of Business Competition (KPPU) issued a recommendation, which said that the Decree violated Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition.
“According to KPPU, instead of a business association, it should be [OJK] that issues a regulation on such matter,” said Firdaus Djaelani, OJK’s Chief of Non-Bank Financial Institution Supervision, in Jakarta, Friday (26/4).
Djaelani further explained that the regulation will cover the tariffs on flood risk insurance and flood data information on 2012 and 2013. This information could be used by customers as a reference when choosing insurance services.
Julian Noor, Executive Director of AAUI, appreciated OJK’s effort to incorporate the reference on tariffs within the regulation. He explained that the reference on tariffs urgently needs to be regulated as the current insurance rate is too low and may cause failure payment on claims made by the policyholders.
“Hopefully the tariff reference will be a win-win solution for the insurance company and the customers,” he added.
Similar to Julian, KPPU welcomed OJK’s plan to regulate the flood risk insurance premiums. Ahmad Junaedi, Director of Public Relations at KPPU, highlighted that the reference on insurance tariffs is part of OJK’s authority as a regulator.
Having said that OJK will regulate the tariffs, KPPU actually expects the insurance tariffs to be based on supervision and service standards of the insurance companies.
“However, if the only option left is price fixing of insurance tariffs, then it must be done by Government,” he concluded.
(hot/jt)
Fathan Qorib, Robert Sidauruk
Financial Services Authority (OJK) is currently discussing the completion of a regulation on flood risk insurance premiums. Prior to this plan, the Indonesian Insurance Association (AAUI) regulated this matter under Decree No. 02/AAUI/2013 (Decree).
However, AAUI has cancelled the Decree’s applicability after the Commission for the Supervision of Business Competition (KPPU) issued a recommendation, which said that the Decree violated Law No. 5 of 1999 on Prohibition of Monopolistic Practices and Unfair Business Competition.
“According to KPPU, instead of a business association, it should be [OJK] that issues a regulation on such matter,” said Firdaus Djaelani, OJK’s Chief of Non-Bank Financial Institution Supervision, in Jakarta, Friday (26/4).
Djaelani further explained that the regulation will cover the tariffs on flood risk insurance and flood data information on 2012 and 2013. This information could be used by customers as a reference when choosing insurance services.
Julian Noor, Executive Director of AAUI, appreciated OJK’s effort to incorporate the reference on tariffs within the regulation. He explained that the reference on tariffs urgently needs to be regulated as the current insurance rate is too low and may cause failure payment on claims made by the policyholders.
“Hopefully the tariff reference will be a win-win solution for the insurance company and the customers,” he added.
Similar to Julian, KPPU welcomed OJK’s plan to regulate the flood risk insurance premiums. Ahmad Junaedi, Director of Public Relations at KPPU, highlighted that the reference on insurance tariffs is part of OJK’s authority as a regulator.
Having said that OJK will regulate the tariffs, KPPU actually expects the insurance tariffs to be based on supervision and service standards of the insurance companies.
“However, if the only option left is price fixing of insurance tariffs, then it must be done by Government,” he concluded.
(hot/jt)