REPUBLIKA.CO.ID, JAKARTA -- The Financial Services Authority (OJK) has urged the insurance industry to make the necessary preparations to face the impending challenges of competition from regional economic integration and the new policy of domestic regulators in 2015.
"Risk-based supervision (RBS) will be implemented next year. There will also be the ASEAN Economic Community (MEA) and a coordination of benefits (COB) with the Social Security Management Agency (BPJS), among others," Dumoly F. Pardede, the OJK's deputy commissioner on Non-Banking Industries, stated here on Monday (17/11).
Dumoly also cited other challenges to be faced by the insurance industry such as the supervision of Microfinance Institutions (LKM), among several others.
"It will be a real war to deal with the insurance sector in 2015. We have to unite our ranks. The OJK will be ready for how insurance products, through bank or known as bancaassurance, should be delivered fairly," he affirmed.
The RBS is a system of risk-based supervision. The preparation in terms of infrastructure, human resources, and socialization has been intensified by the OJK since early 2014.
Meanwhile, the COB is a coordination of benefits between private companies and the BPJS.
In addition, the supervision system, in 2015, will also increase with the scheme "Global Systematically Important Insurance" (GSII), which was set up as an international monitoring group.
"Indonesia will go ahead as the ninth giant insurance company is in Indonesia," he emphasized.
He pointed out that the benefits of the scheme will help to mitigate the risks if there is any interference in the insurance business of the group that occurs abroad and could disrupt the financial system in Indonesia.
"So, for example, if the insurance business outside the country is affected, then the domestic insurance business is also going to face the brunt. So, we have created a working group," he remarked.
With regard to internal policies, Dumoly hinted that there will be a change in policy regarding premium rates. The OJK will prepare the inspection team so that the mechanism of bancaassurance can run fairly for the benefit of the company and the community.
"We will form a joint inspection team soon," he emphasized.
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