Regulatory AlertsRegulation on Guarantee Business Units in General Insurance and Sharia General Insurance Companies
The Otoritas Jasa Keuangan issued Regulation No. 39/PADK.05/2025 to establish institutional requirements, licensing, and risk management standards for Guarantee Business Units (UUP) within general and Sharia general insurance companies. The regulation mandates that these units operate under government assignment, maintain executive leadership, and adhere to prudential principles including claim reserves and reinsurance. Compliance obligations, such as asset transfers and monthly reporting, commence with the June 2026 reporting period, while existing agreements remain valid until expiration.
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