This article has been published on Kompas.com with the title “OJK Awasi 13 Perusahaan Asuransi Bermasalah” (6/12/2022).
Liga Asuransi – The Financial Services Authority (OJK) plays a central role in overseeing and regulating the financial sector, with a specific focus on the insurance industry. In executing its duties, OJK has a set of crucial functions that encompass various aspects, including claims, risk management, and compliance with established regulations.
It all begins with the licensing process. OJK is responsible for granting licenses to insurance companies that meet the specified requirements and standards. This involves a comprehensive evaluation of financial conditions, risk management capabilities, and adherence to applicable regulations.
After obtaining a license, OJK’s oversight doesn’t end there. Continuous monitoring is conducted regularly to ensure that insurance companies operate with transparency, fairness, and good governance principles. The operational standards set by OJK serve as guidelines, including minimum capital requirements, investment provisions, and claims procedures.
When insurance companies encounter issues, OJK has the authority to take necessary actions. This may involve revoking licenses, imposing sanctions, or implementing special oversight to restore the stability of the company.
OJK’s oversight also involves evaluating the insurance products offered by companies, aiming to protect consumer interests and ensure that insurance products meet safety and feasibility standards.
Additionally, OJK actively engages in public education and outreach activities. The goal is to provide a better understanding of the importance of insurance, consumer rights and obligations, and a profound comprehension of the offered insurance products.
OJK also carries out coordination functions with relevant parties, such as insurance companies, shareholders, and other regulators. This collaboration aims to maintain the stability and integrity of the insurance industry as a whole.
Through this multidimensional involvement, OJK is committed to creating a healthy, secure, and reliable insurance environment for both the public and all stakeholders involved.
According to a news report from Kompas on December 6, 2022, during the RDK (Dewan Komisioner Meeting) press conference in November 2022, OJK’s Executive Head of Non-Bank Financial Industry Supervision (IKNB), Ogi Prastomiyono, revealed that there are currently 7 life insurance companies and 6 general insurance companies, including reinsurance, under special oversight.
Details regarding these companies were not explicitly outlined by Ogi during the conference. Nevertheless, this information suggests that OJK is taking intensified supervisory measures on several insurance companies in Indonesia. The special oversight category indicates specific attention to the financial health, regulatory compliance, and operational performance of these companies.
The presence of insurance companies under special oversight can be attributed to various factors such as financial issues, inadequate risk management, or violations of regulations established by OJK. Special oversight may include rigorous monitoring, in-depth evaluations, and necessary corrective measures to ensure these companies comply with the set standards and operate stably.
OJK’s steps to intensify oversight align with its commitment to maintaining stability and trust in the insurance industry. A report from Kompas provides relevant information, strengthening the understanding of the conditions of insurance companies under special oversight on that date.
In the same context, Chairman of the Financial Services Authority (OJK), Mahendra Siregar, emphasizes OJK’s commitment to taking strict actions against financial service actors proven to violate established rules and regulations. Mahendra underscores the necessity of such decisive actions, considering the significant reliance of the financial service business on public trust. Trust emanates not only from the ability of financial service actors to deliver quality services but also from their adherence to laws and regulations.
Mahendra explains that the consistent implementation and enforcement of regulations are the primary foundations for maintaining trust, reputation, and integrity in the financial service sector. How financial service actors internalize and adhere to regulations reflects their responsibility to clients, policyholders, and other stakeholders.
Observing the fact that OJK granted 5 business licenses to financing companies in November 2022, Mahendra asserts that OJK’s role extends beyond license issuance to vigilant supervision and rule enforcement. As a regulator, OJK bears a significant responsibility to enforce all established rules and regulations. In this regard, OJK acts as a guardian overseeing all financial service actors, ensuring their compliance with prevailing rules and regulations.
The importance of compliance extends beyond the institution’s interests, aiming to uphold stability and public trust in the entire Indonesian financial service industry. OJK hopes that stringent rule enforcement will contribute to maintaining a stable, trustworthy financial service system capable of positively influencing future economic growth.
In conclusion, it can be deduced that the Financial Services Authority (OJK) plays a central role in preserving the health and integrity of the financial service industry in Indonesia. In November 2022, OJK specifically monitored 7 life insurance companies and 6 general insurance companies, including reinsurance, showcasing a serious commitment to regulatory compliance and sector stability.
OJK’s decisive actions against rule-violating financial service actors, as emphasized by Chairman Mahendra Siregar, highlight public trust as the primary focus. Consistency in regulation implementation is considered a fundamental cornerstone for maintaining trust, reputation, and integrity in the financial service sector.
By granting business licenses and concurrently overseeing and enforcing regulations, OJK acts as a guardian, ensuring the Indonesian financial service industry remains a stable, trustworthy system capable of supporting future economic growth. The collective efforts aim to ensure that financial service actors adhere to the highest standards in delivering services to the public and sustaining the national financial sector.
This article is part of the book “BANGKITNYA ASURANSI KAMI” with keynote speaker Professor Muhammad Eddi Purnawan, a Member of the OJK Supervisory Board. February 2024. ISBN, IPB Press Publishers.
The price of this book is IDR 155,000 and can be ordered through ligasuransi.com.
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