New Provisions on Financial Soundness for Conventional Insurance and Reinsurance Companies

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Regulation No. 71/POJK.05/2016 on Financial Soundness for Insurance and Reinsurance Companies (“Regulation 71/2016”) in an attempt to provide further guidelines for conventional insurance and reinsurance companies regarding the maintenance of financial soundness.[1]
 
Comprising of 62 articles, Regulation 71/2016 sets out a broad framework and, as a result of this breadth, this edition of Indonesian Legal Brief will confine its discussion to the following areas: