Indonesia - New regulations impacting unit-linked business

In March, the Indonesian Financial Services Authority (OJK) outlined new regulations for unit-linked business in the life insurance market. The regulations seek to enhance the level of transparency and protection accorded to policyholders after numerous customer complaints and disputes. This e-Alert discusses the transition period and key changes, such as:

• Higher minimum capital and the increase for minimum sum assured
• Banning guarantees and removal of waiting period
• Active premium holidays, premium adequacy, and minimum premium allocation 
• Investment limits
• Market process and sales disclosures