Regulatory AlertsOJK Regulation No. 22 of 2024 on Periodic Reports of Insurance Companies
The Financial Services Authority (OJK) issued Regulation No. 22 of 2024 to update periodic reporting requirements for insurance companies in Indonesia, aligning with recent amendments to the Insurance Law and the Financial Sector Development and Strengthening Law. The regulation mandates that insurance entities submit monthly, quarterly, annual, and publication reports through the OJK's reporting system by strict deadlines, while ensuring data accuracy and accountability. It also defines the limited circumstances under which OJK may share specific reports and analysis with law enforcement, tax authorities, Bank Indonesia, and other designated parties.
Regulation of the Financial Services Authority Republic of Indonesia Number 22 of 2024 concerning Periodic Reports of Insurance Companies
Abstract: To implement the provisions of Article 22 paragraph (7) and Article 23 paragraph (2) of Law Number 40 of 2014 concerning Insurance as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, and to adjust the regulations of Financial Services Authority Regulation Number 55/POJK.05/2017 concerning Periodic Reports of Insurance Companies to the development of the insurance industry in Indonesia, it is necessary to establish a Financial Services Authority Regulation concerning Periodic Reports of Insurance Companies.
The legal basis for this Financial Services Authority Regulation (POJK) is: Law No. 21 of 2011 as amended by Law No. 4 of 2023; and Law No. 40 of 2014 as amended by Law No. 4 of 2023.
In order to support the effectiveness of supervision functions in the insurance sector, adequate support of data, information on financial conditions, and business activities is required through reports submitted periodically by Insurance Companies. The aforementioned information must be complete, accurate, and timely, and can be accounted for.
Based on Law No. 40 of 2014 concerning Insurance as amended by Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is also regulated that the Financial Services Authority may provide certain reports and analysis results of Insurance Company reports to other parties including police, prosecutors, judges, tax officials, Bank Indonesia, Deposit Insurance Corporation, and other parties based on legislation.
The Board of Directors or equivalent of the Insurance Company is responsible for the preparation and presentation of Periodic Reports in a complete, accurate, and timely manner.
Insurance Companies are required to submit Periodic Reports to the Financial Services Authority in the form of: a. Monthly Reports submitted no later than the 10th day of the following month; b. Quarterly Reports submitted no later than 1 (one) month since the end of the relevant quarter; c. Annual Reports no later than April 30 of the following year; d. Publication Reports submitted no later than:
- 10 (ten) working days after the end of the relevant month for the summary of monthly reports; and
- 1 (one) month after the deadline for submission of Annual Reports for the summary of audited annual financial reports; and e. Other Reports submitted in accordance with the time limits regulated in Financial Services Authority Regulations or other legislative provisions requiring the submission of such reports.
The submission of Periodic Reports is conducted through the Financial Services Authority's reporting system.
In the event that based on the results of the Financial Services Authority's supervision over: a. Monthly Reports submitted by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, Sharia Reinsurance Companies, and Sharia Units; or b. Quarterly Reports submitted by Insurance Brokerage Companies and Reinsurance Brokerage Companies, errors in information are found, the Insurance Company is required to submit corrections using the results of such supervision.
The Financial Services Authority may provide certain reports and analysis results of Insurance Company reports to other parties based on legislative provisions.
Certain reports and analysis results of Insurance Company reports cannot be opened by the Financial Services Authority to other parties, except to: a. police and prosecutors for investigation purposes; b. judges for judicial purposes; c. tax officials for tax purposes; d. Bank Indonesia for the implementation of its duties; e. Deposit Insurance Corporation for the implementation of the policy guarantee program; and f. other parties based on legislation.
Note: This Financial Services Authority Regulation takes effect on January 1, 2025. This Financial Services Authority Regulation was promulgated on December 3, 2024, and established on November 25, 2024.
At the time this Financial Services Authority Regulation takes effect, the implementation provisions of Financial Services Authority Regulation Number 55/POJK.05/2017 concerning Periodic Reports of Insurance Companies are declared to remain in force insofar as they do not conflict with this Financial Services Authority Regulation.
At the time this Financial Services Authority Regulation takes effect: a. Article 57 of Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies as last amended by Financial Services Authority Regulation Number 5 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 71/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies; b. Article 58 of Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles as last amended by Financial Services Authority Regulation Number 6 of 2023 concerning the Second Amendment to Financial Services Authority Regulation Number 72/POJK.05/2016 concerning the Financial Health of Insurance Companies and Reinsurance Companies with Sharia Principles; and c. Financial Services Authority Regulation Number 55/POJK.05/2017 concerning Periodic Reports of Insurance Companies, are repealed and declared invalid.
Explanation: 5 pages.