OJK Releases New Rules On Periodic Reports For Insurance Companies

The Financial Services Authority (OJK) has issued a new regulation aimed at enhancing transparency, efficiency, and accountability in reporting by financial service industry players, especially insurance companies. Acting Head of the Department of Financial Literacy, Inclusion, and Communication at OJK, M. Ismail Riyadi, stated that this regulation is outlined in OJK Regulation Number 22 of 2024 concerning Periodic Reports of Insurance Companies. This issuance follows the mandate in Article 22, paragraph (7), and Article 23, paragraph (2) of Law Number 40 of 2014 on Insurance, as amended by Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector, and aims to align the regulations with the evolving insurance industry in Indonesia.

Through this regulation, OJK hopes to enhance the effectiveness of oversight in the insurance sector by setting rules for the preparation and submission of periodic reports that include financial conditions and business activities in a format and timeframe specified by OJK, in accordance with legal regulations in the insurance sector, he mentioned in a press release on Wednesday (January 8, 2024). He added that this regulation improves upon OJK Regulation Number 55/POJK.05/2017 regarding Periodic Reports of Insurance Companies, accommodating the implementation of Financial Accounting Standards for Insurance Contracts in 2025.

The main provisions of this regulation include the obligation for insurance companies to prepare and submit complete, accurate, and timely periodic reports, which consist of monthly, quarterly, annual reports, public disclosures, and other reports.

The regulation also outlines the process for submitting specific reports and the analysis of insurance company reports to authorities such as the police, prosecutors, courts, the tax authority, Bank Indonesia, and the Deposit Insurance Corporation. "This regulation also strengthens administrative sanctions, including written warnings, health rating reductions, and fines for reporting violations," he added. The development of this regulation involved stakeholders and took into account feedback from the insurance industry, aiming for healthier insurance companies.

It is important to note that this regulation will take effect on January 1, 2025, with administrative fines for reporting errors starting from the June 2025 report. Further details on how to submit periodic reports, correct periodic reports, and extend deadlines for submitting periodic reports and/or corrections are outlined in the Financial Services Authority Circular Number 23/SEOJK.05/2024 regarding the format and structure of periodic reports for insurance and reinsurance companies. "With this regulation, the OJK hopes to enhance oversight of the insurance industry by providing better data and information," he stated.

Tag: Financial Services Authority OJK