OJK Overhauls Unit-Linked Insurance Rules, Here Are the Details
The Financial Services Authority (OJK) is currently drafting a new OJK Regulation concerning Insurance Products Linked to Investment (RPOJK PAYDI). The regulation is targeted for completion by the end of 2026.
Chief Executive of Insurance, Guarantee, and Pension Fund Supervision (PPDP) Ogi Prastomiyono stated that the process is currently at the drafting stage before consultations and requests for input from stakeholders are conducted.
‘One of the aspects of concern in the RPOJK is the strengthening of provisions regarding the marketing of PAYDI products, including efforts to mitigate the risk of mis-selling and enhance consumer protection,’ he said in a written statement on Monday.
Regarding the recording mechanism in the marketing process, the OJK is still conducting a study to formulate proportional regulations that can strengthen risk management aspects without imposing excessive burdens on the industry.
‘In its formulation, the OJK is also considering various alternative mechanisms that are more effective and efficient, including the use of digital media such as pre-recorded videos or other forms of documentation that can still support consumer understanding of the characteristics, benefits, costs, and risks of PAYDI products before a purchase decision is made,’ he explained.
In terms of performance, as of May 2026, the PAYDI or unit-linked business line continued to show a positive trend. Premium income was recorded at IDR 18.79 trillion, an increase of 13.71% year-on-year (yoy).
In terms of composition, the PAYDI business line remains one of the main contributors to the life insurance industry, with a 24.47% share of the total life insurance premium income, which reached IDR 76.79 trillion.
Going forward, the OJK hopes that insurance companies will continue to ensure that PAYDI products are marketed transparently, in accordance with the risk profile and needs of customers, so that the resulting growth can occur in a sound and sustainable manner.