Unit-Link Provisions Updated and Elaborated in Effort to Improve Consumer Protection

The Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued Circular No. 5/SEOJK.05/2022 on Investment-Linked Insurance Products (“Circular 5/2022”). In addition to being mandated under several regulations of the OJK,[1] the issuance of Circular 5/2022 represents an attempt to provide better protection to consumers of investment-linked insurance products, which are commonly known as unit links, as well as to improve governance and risk management for insurance companies in order to prevent any future problems emerging in relation to the marketing of unit links.[2]