Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fathan Qorib, Andin Aditya Rahman
The Financial Services Authority (OJK) in conjunction with a number of insurance associations has launched a micro-insurance program. The OJK hopes that the program will improve the continued development of the insurance sector in Indonesia.
Responding to the newly-launched program, Julian Noor, Executive Director of the General Insurance Association of Indonesia (AAUI), expressed his expectation that the OJK will simplify the licensing requirements for selling micro-insurance products.
For some months Julian has been pursuing the OJK on this issue and previously commented that “I stated some time ago that there should also be some sort of flexibility from OJK for the licensing of these products.”
Greater simplicity, as Julian said, will spark fierce competition between insurance companies to create new insurance products. Further, Julian explained, if the licensing of micro-insurance products is the same as conventional insurance products, this will destroy the creativity of insurance companies in devising new micro-insurance products.
“If the treatment is the same as conventional products with documents and things like that, this will encourage people not to quickly create something,” stated Julian.
Under the current state of affairs, Indonesian laws and regulations do not provide a specific regulatory framework for micro-insurance products. This program, according to Julian, can become momentum for legislators and regulation drafters to finally establish clear-cut provisions to accommodate micro-insurance.
Firdaus Djaelani, Executive Chairman of the Non-bank Financial Industry Supervisory Section at the OJK, confirmed that the prevailing laws and regulations do not include a definition of micro- insurance. However, a working definition for micro insurance has now been made available in the jointly launched micro-insurance program of OJK.
Under the program, micro-insurance is defined as “insurance products intended for low-income individuals with simple features and administration, easily available, economically priced, as well as providing for swift completion of coverage claims.”
Firdaus also agrees that the licensing of micro-insurance products needs to be simple to improve the sale of these insurance products and contribute to the general development of the insurance sector in Indonesia.
“What’s important is that it is simple. The procedures to file a claim must not be complicated. Simple is, for example, the required documents can follow,” asserted the economist.
Darmin Nasution, former Governor of Bank Indonesia, affirmed that the provisions and oversight of the non-banking financial sector should be further developed to also incorporate the development of micro-insurance products.
“Provisions and oversight for the non-bank financial sector is indeed a little outdated when compared to banks. However, this means that steps should be taken to improve it. It will need time lah, but we also cannot wait for everything to be perfect before starting,” stated Darmin.
(hot/kc)
Fathan Qorib, Andin Aditya Rahman
The Financial Services Authority (OJK) in conjunction with a number of insurance associations has launched a micro-insurance program. The OJK hopes that the program will improve the continued development of the insurance sector in Indonesia.
Responding to the newly-launched program, Julian Noor, Executive Director of the General Insurance Association of Indonesia (AAUI), expressed his expectation that the OJK will simplify the licensing requirements for selling micro-insurance products.
For some months Julian has been pursuing the OJK on this issue and previously commented that “I stated some time ago that there should also be some sort of flexibility from OJK for the licensing of these products.”
Greater simplicity, as Julian said, will spark fierce competition between insurance companies to create new insurance products. Further, Julian explained, if the licensing of micro-insurance products is the same as conventional insurance products, this will destroy the creativity of insurance companies in devising new micro-insurance products.
“If the treatment is the same as conventional products with documents and things like that, this will encourage people not to quickly create something,” stated Julian.
Under the current state of affairs, Indonesian laws and regulations do not provide a specific regulatory framework for micro-insurance products. This program, according to Julian, can become momentum for legislators and regulation drafters to finally establish clear-cut provisions to accommodate micro-insurance.
Firdaus Djaelani, Executive Chairman of the Non-bank Financial Industry Supervisory Section at the OJK, confirmed that the prevailing laws and regulations do not include a definition of micro- insurance. However, a working definition for micro insurance has now been made available in the jointly launched micro-insurance program of OJK.
Under the program, micro-insurance is defined as “insurance products intended for low-income individuals with simple features and administration, easily available, economically priced, as well as providing for swift completion of coverage claims.”
Firdaus also agrees that the licensing of micro-insurance products needs to be simple to improve the sale of these insurance products and contribute to the general development of the insurance sector in Indonesia.
“What’s important is that it is simple. The procedures to file a claim must not be complicated. Simple is, for example, the required documents can follow,” asserted the economist.
Darmin Nasution, former Governor of Bank Indonesia, affirmed that the provisions and oversight of the non-banking financial sector should be further developed to also incorporate the development of micro-insurance products.
“Provisions and oversight for the non-bank financial sector is indeed a little outdated when compared to banks. However, this means that steps should be taken to improve it. It will need time lah, but we also cannot wait for everything to be perfect before starting,” stated Darmin.
(hot/kc)