OJK Acts Against 15 Illegal Insurance Brokers, Association Chairman Issues Advisory

The Indonesian Insurance and Reinsurance Brokers Association (Apparindo) has urged insurance companies not to cooperate with brokerage firms suspected of operating without a licence from the Financial Services Authority (OJK). Apparindo Chairman and Chairman of the Indonesian Insurance Council (DAI) Yulius Bhayangkara welcomed the OJK’s initiative to crack down on illegal insurance brokers. He stated that strengthening and developing the insurance industry must be accompanied by a comprehensive improvement of the industry ecosystem. Yulius emphasised that illegal insurance brokerage firms are not members of Apparindo and are not registered with the OJK. Consequently, these companies are legally outside the legitimate insurance ecosystem in Indonesia. “Illegal brokers are not Apparindo members and are not registered with the OJK. They operate in the dark and legally do not exist in the insurance ecosystem,” Yulius told CNBC Indonesia on Tuesday (5/8/2026). He added that illegal brokers operate outside the regulator’s supervision, potentially posing risks to both the industry and consumers. Therefore, Apparindo supports the OJK’s enforcement measures while upholding the principles of prudence and legal compliance. Furthermore, Yulius stated that Apparindo supports the handling of illegal brokers carefully and in accordance with applicable regulations. This step is considered important so that regulatory enforcement can run effectively and provide legal certainty for all industry players. “We call for support to ensure insurance companies do not transact with illegal brokers who are not registered with the OJK and Apparindo,” Yulius stressed. Previously, the OJK revealed that 15 companies were indicated to be conducting insurance brokerage business without a licence. The OJK will take firm action against these findings through an ongoing legal enforcement process. Ogi Prastomiyono, Chief Executive of Insurance, Guarantee, and Pension Fund Supervision at the OJK, said there are currently 191 brokerage firms registered with the OJK, comprising 150 insurance brokers and 41 reinsurance brokers. Ogi explained that every brokerage firm is required to employ at least one broker registered through the Professional Certification Institute (LSP) and licensed by the OJK. “The OJK still finds parties carrying out activities resembling insurance brokerage by employing insurance agents but conducting insurance brokerage activities. Legal enforcement is being carried out, and to date, 15 companies are indicated to be conducting insurance brokerage business without a licence,” Ogi said during the OJK Board of Commissioners Meeting press conference on Tuesday (4/8/2026). The cases of the 15 companies are now being handled by OJK investigators, ranging from inquiry and investigation stages, with some having already entered the trial process. In addition to taking action against companies suspected of operating without a licence, the OJK is also taking supervisory measures against insurance companies that cooperate with unlicensed brokers. The OJK has taken supervisory action by requesting the termination of such cooperation and imposing administrative sanctions on violators. Meanwhile, the OJK is strengthening supervision through the implementation of QR Code verification on Registration Certificates (STTD). Through this system, the public and industry players can verify the status of brokers in real time, thereby minimising potential losses from using unlicensed brokers. The OJK also requires all insurance and reinsurance brokerage firms to re-register all employed brokers to obtain QR Code-based STTDs. This process is currently ongoing, with 434 brokers registered so far.