Regulator and Industry Discuss New Standards for Insurance Policyholder Protection
A discussion forum bringing together regulators, policymakers, and industry players was held to discuss the direction of strengthening governance in the insurance sector and protection for policyholders in Indonesia. The forum highlighted the importance of transparency, robust supervision, and a strengthened policyholder protection system to maintain public trust in the insurance industry. The theme, Standar Baru Tata Kelola Asuransi dan Perlindungan Nasabah di Indonesia (New Standards for Insurance Governance and Policyholder Protection in Indonesia), was staged at Aroem Mahakam Resto, South Jakarta.
The forum gathered strategic stakeholders from regulators, the legislature, to industry associations. The discussions aimed to seek solutions to various challenges in the life insurance industry while formulating new governance standards that are more transparent and accountable.
It was stated that the insurance industry is currently at a crucial juncture where public trust is a vital asset and a challenge to safeguard. Against the backdrop of economic dynamics and rising living costs, life insurers are expected not only to survive but also to transform through strengthened corporate governance and a more robust policyholder protection system.
Three main issues were highlighted in the current insurance ecosystem: firstly, strengthening corporate governance that requires transparent oversight due to its direct impact on economic stability and public confidence; secondly, agency practices requiring insurers to ensure sales quality and accuracy of information conveyed to policyholders; thirdly, policyholder protection that places the experience of the policyholder at the core of industry policy-making.
Amir Sodikin, Editor-in-Chief of Kompas.com, who acted as moderator, emphasised that the discussion was about policy directions to strengthen governance of the insurance industry and new standards of accountability in policyholder protection. He said that the balance between financial system stability and policyholder protection should be the primary foundation for the sustainability of Indonesia’s insurance industry.
The forum also featured Herman Khaeron, a member of Commission VI and head of the State Financial Accountability Agency (BAKN) of the Indonesian House of Representatives, who discussed the legislative role in strengthening insurance industry oversight. He stressed the importance of transparency in the governance of insurers’ finances so that benefits can be felt by the wider public. He also noted the development of IFG Life, which currently manages Jiwasraya’s former policyholders’ policies through a government-led industry rehabilitative scheme. He said IFG Life’s management shows positive development and is hoped to help restore public confidence in the national insurance industry.
From the regulator’s side, Sumarjono, Head of the Insurance and Supporting Services Supervision Department at the Financial Services Authority (OJK), explained national policy directions in strengthening governance of insurance companies. He emphasised the importance of strong risk management and higher accountability standards to minimise potential misappropriation in managing policyholder funds.
“Life insurance rests on trust, and trust can only endure if governance and risk management are practiced not merely as obligations but as a culture,” said Sumarjono.
Industry ready for new regulation. Meanwhile, Emira E. Oepangat, Executive Director of the Life Insurance Association of Indonesia (AAJI), stated that the life insurance industry has diverse characteristics, with varying levels of governance maturity. But in general, all players are moving towards stronger governance standards, through enhanced risk management, digital transformation, and greater transparency. Emira also highlighted the importance of claims management in maintaining public trust in the insurance industry. “The fundamental philosophy of the industry is that a company exists to pay valid claims to the right people, in the right amount, in accordance with the policy terms. Controls are crucial because various studies show fraud can contribute around five percent to the claims ratio,” she said.
The discussion is expected to open a constructive space for dialogue to objectively address various challenges in the life insurance industry. The forum is hoped to spur joint solutions to strengthen governance, improve policyholder protection, and rebuild public trust in Indonesia’s insurance sector. (E-3)
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