Makeover of Corporate Governance for Insurance Companies by OJK

The Financial Services Authority (“OJK”) has issued Regulation No. 2/POJK.05/2014 of 2014 on Good Corporate Governance for Insurance Companies (“2014 Regulation”). This represents an effort by the OJK to avoid another financial crisis like in 1998 and 2008,[1] by establishing provisions on good corporate governance (“GCG”) for the insurance sector.

The 2014 Regulation primarily aims to update GCG provisions for Insurance Companies which were previously regulated under Minister of Finance Regulation No. 152/PMK.010/2012 of 2012 on Good Corporate Governance for Insurance Companies (“2012 Regulation”).[2]