Overview

In January 2022, the offices of two insurance companies were visited by several customers/policyholders who were demanding reparations. These parties claimed that they had been deceived into investing in Investment-Linked Insurance Plans (Produk Asuransi yang Dikaitkan dengan Investasi – “PAYDI”), which are also known as unit links, and had, as a result, sustained significant losses.[1] Moreover, this particular case represents a mere fraction of the actual complaints that have been submitted by dissatisfied customers of late. Indeed, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) reported that 260 unit-link customers of three insurance companies (Prudential Indonesia, AIA Financial and AXA Mandiri) submitted complaints in 2021 alone.[2]