OJK revises unit link insurance regulations to address marketing obstacles

Jakarta (ANTARA) - The Executive Head of the Insurance, Guarantee, and Pension Fund Supervisory Executive (PPDP) of the Financial Services Authority (OJK), Ogi Prastomiyono, stated that his agency is perfecting regulations related to Investment-Linked Insurance Products (PAYDI), or unit link, to address marketing obstacles. He explained that this effort also aims to ensure that unit link products are marketed more transparently, in accordance with customers’ risk profiles and needs. “OJK is perfecting the provisions related to PAYDI to reduce implementation barriers, particularly in the marketing aspect, while still prioritising the protection of policyholders’ interests,” said Ogi Prastomiyono in Jakarta on Thursday. He noted that the current regulation of PAYDI still refers to OJK Circular Letter No. 5/SEOJK.05/2022 on Investment-Linked Insurance Products. Therefore, his side deems it necessary to elevate the PAYDI regulation to an OJK Regulation (POJK) to provide a stronger and more strategic foundation. “The substance regulated includes, among others, marketing aspects as well as adjustments to asset and liability management, so that it aligns with the asset and liability management provisions in insurance and reinsurance companies,” he said. Ogi conveyed that the performance of PAYDI products is still showing a positive trend at the beginning of this year, even though economic uncertainty continues to increase due to global geopolitical turmoil. He stated that this reflects the public’s interest in investment-based products remaining intact, especially for long-term planning and protection. His side projects that PAYDI growth will be more moderate and selective, focusing on product sustainability and suitability with customers’ risk profiles, so the market share of unit link products tends to be stable with potential for gradual increases. As of February 2026, unit link product premium income was recorded at Rp7.89 trillion, growing 5.17% year-on-year (yoy), indicating that the product remains one of the main contributors in the life insurance industry. OJK continues to encourage strengthening the governance of unit link products through increased transparency of benefits and risks, strengthening the customer needs-based marketing process, and prudent investment management. “OJK emphasises the principle of product suitability and consumer protection so that the growth achieved is not only in terms of volume but also quality,” Ogi added.