New Regulation on Organizing the Business Operations of Insurance/Reinsurance Companies

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 69/POJK.05/2016on the Organization of Insurance, Sharia-Insurance, Reinsurance, and Sharia-Reinsurance Companies (“Regulation 69/2016”).
 
Regulation 69/2016 is an implementation of Articles 5 (3), 18 (4), 26 (2), 28 (6), 29 (5), 31 (5), and 39 (3) which were originally set out under Law No. 40 of 2014[1] on Insurance.[2] This law required further provisions to be issued relating to several matters which pertain to the expansion of business activities, cooperation with other parties, deposits of premiums, standards of business conduct, the settlement of claims and complaints, as well as mandatory insurance programs.
 
Due to the broad scope of Regulation 69/2016, this edition of Indonesian Legal Brief will confine its discussions to the following topics: