Preparing the Insurance Transformation
The government is preparing a number of steps to strengthen the insurance industry and increase public confidence in institutions.
Financial Services Authority (OJK) chairman Wimboh Santoso (right) and member Nurhaida (left) attend a hearing with House of Representatives Commission XI regarding supervision on the financial industry in Jakarta on Wednesday (22/1/2020). The OJK will heighten supervision on investment at non-bank institutions following the case of state insurer PT Asuransi Jiwasraya.
JAKARTA, KOMPAS — The government is preparing steps to transform the insurance industry and the nonbank financial industry (IKNB) and their businesses. This effort is carried out to strengthen the insurance industry while increasing public confidence, which has been disturbed by a case of default on claims that befell PT Asuransi Jiwasraya and Life Insurance with Bumiputera.
The transformation measures prepared by the government include the establishment of a policy guarantor institution, strengthening the legal basis for the Financial System Stability Committee (KSSK), an omnibus law on the financial sector in the form of a Bill on Development and Strengthening of the Financial Sector, and the strengthening of regulations related to the supervision and governance of the nonbanking financial sector by the Financial Services Authority (OJK).