Kamis, Januari 12, 2023

Provisions on Marketing Media for Insurance Products Amended

The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has introduced an amendment to Circular No. 19/SEOJK.05/2020 on Marketing Media for Insurance Products ("Circular 19/2020") through the issuance of Circular No. 30/SEOJK.05/2022 ("Amendment"), which has been in force since 27 December 2022.
The Amendment provides that Non-Banking Business Entities (Badan Usaha Selain Bank – "BUSB") may assist in the administration of insurance closure, underwriting, claims and/or the acceptance of premiums or contributions under certain conditions, such as when insurance relates to the sale of BUSB products. However, BUSB may only assist with payments of premiums or contributions if such activity is explicitly stated under a cooperation agreement and if the relevant parties satisfy the applicable requirements.
Furthermore, the Amendment also sets out more detailed provisions that address the utilization of electronic BUSB systems during the marketing of insurance products. In this regard, any links that connect electronic BUSB systems with the electronic systems of insurance companies must fall within the scope of the utilization of the Application Programming Interface (API) and must satisfy the following requirements: 1) Must be owned by the relevant insurance companies; 2) Must have been subject to effective risk management; 3) After insurance policies have been issued, then electronic BUSB systems must not store any consumer data that relates to insurance submissions; and 4) Prior to transfers from electronic BUSB systems to the electronic systems of insurance companies, consent for said transfers must be secured from the relevant consumers.

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The Financial Services Authority (Otoritas Jasa Keuangan – "OJK") has introduced an amendment to Circular No. 19/SEOJK.05/2020 on Marketing Media for Insurance Products ("Circular 19/2020") through the issuance of Circular No. 30/SEOJK.05/2022 ("Amendment"), which has been in force since 27 December 2022.
The Amendment provides that Non-Banking Business Entities (Badan Usaha Selain Bank – "BUSB") may assist in the administration of insurance closure, underwriting, claims and/or the acceptance of premiums or contributions under certain conditions, such as when insurance relates to the sale of BUSB products. However, BUSB may only assist with payments of premiums or contributions if such activity is explicitly stated under a cooperation agreement and if the relevant parties satisfy the applicable requirements.
Furthermore, the Amendment also sets out more detailed provisions that address the utilization of electronic BUSB systems during the marketing of insurance products. In this regard, any links that connect electronic BUSB systems with the electronic systems of insurance companies must fall within the scope of the utilization of the Application Programming Interface (API) and must satisfy the following requirements: 1) Must be owned by the relevant insurance companies; 2) Must have been subject to effective risk management; 3) After insurance policies have been issued, then electronic BUSB systems must not store any consumer data that relates to insurance submissions; and 4) Prior to transfers from electronic BUSB systems to the electronic systems of insurance companies, consent for said transfers must be secured from the relevant consumers.

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