11 October, 2017
On 31 July 2017 the Financial Services Authority (OJK) issued Circular Letter No. 55/POJK.55/2017 on Periodic Reports of Insurance Companies, Reinsurance Companies, Insurance Brokerage Companies, Reinsurance Brokerage Companies and Loss Adjuster Companies (CL 55/2017). It became effective on the same day.
CL 55/2017 now specifies that the annual report for insurance companies, reinsurance companies, and syariah units within insurance/reinsurance companies must consist of at least the following reporting/analysis:
- an analysis that the controlling shareholder(s) of the insurance companies, the reinsurance companies or the syariah units have met requirements set out under prevailing regulations
- a year-end risk assessment of the insurance companies, reinsurance companies and syariah units
- an action plan to mitigate any risks specified in item (2) above
- a self-assessment report on risk management
- an implementation report on the anti-fraud work plan
- a good corporate governance report
- an implementation report on the covering the annual business plan
- a report on insurance risk data (eg, tariff and own retention)
- an implementation report on the reinsurance program
- an annual actuarial report prepared by the appointed actuary of the insurance company and the reinsurance company
CL 55/2017 further requires insurance companies, reinsurance companies, insurance brokerage companies, reinsurance brokerage companies and loss adjuster companies to submit complete periodic reports to the OJK. CL 55/2017 defines a "complete report" as a report in which: (i) at least all the required contents are presented, and (ii) all material facts or information that should have been presented have been accurately represented.
Consequently, all directors who sign periodic reports now must ascertain that the reports meet the above requirements and standards.
For more details on CL 55/2017, please click here.
Reminders on certain Indonesian 2017 deadlines
Insurance, reinsurance and insurance supporting business companies will need to take the following immediate actions to comply with the regulations:
- Before 12 October 2017 insurance and reinsurance companies must set up a data center and a disaster recovery center in Indonesia (see below).
- Before 31 December 2017 insurance and reinsurance companies must comply with the requirements on the separation of assets and liabilities of insured persons and policyholders
- Before 31 December 2017 insurance and reinsurance companies (including syariah companies) must conduct a valuation of liabilities and produce an actuary report.
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