Amendment to Financial Services Authority Regulation Number 36 of 2024 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies

EXTRACT
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 36 OF 2024
CONCERNING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 69/POJK.05/2016 CONCERNING THE CONDUCT OF BUSINESS BY INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

BY THE GRACE OF GOD THE ALMIGHTY,
THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY,

Considering:
a. that in order to implement the provisions of Article 5 paragraph (5), Article 28 paragraph (9), and Article 31 paragraph (5) 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, it is necessary to adjust the provisions regarding the expansion of business scope, cooperation with other parties, and resolution of claim handling as regulated in Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies; b. that in order to support the development of the business of insurance companies, Sharia insurance companies, reinsurance companies, and Sharia reinsurance companies through the use of information technology in the company's business processes, it is necessary to regulate insurance services using information technology by adjusting Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning Amendment to Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies;

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Considering: 1. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
2. Law Number 40 of 2014 concerning Insurance (State Gazette of the Republic of Indonesia Year 2014 Number 337, Supplement to the State Gazette of the Republic of Indonesia Number 5618) as amended by Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (State Gazette of the Republic of Indonesia Year 2023 Number 4, Supplement to the State Gazette of the Republic of Indonesia Number 6845);
3. Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 302, Supplement to the State Gazette of the Republic of Indonesia Number 5992);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 69/POJK.05/2016 CONCERNING THE CONDUCT OF BUSINESS BY INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES.

Several provisions in Financial Services Authority Regulation Number 69/POJK.05/2016 concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 302, Supplement to the State Gazette of the Republic of Indonesia Number 5992) are amended as follows:

1. The provisions of Article 1 are amended to read as follows:
   Article 1
   In this Financial Services Authority Regulation, the following terms are defined as:
2. Company means an insurance company, Sharia insurance company, reinsurance company, and Sharia reinsurance company.
3. Insurance Company means a general insurance company and a life insurance company.
4. Sharia Insurance Company means a Sharia general insurance company and a Sharia life insurance company.

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4. General Insurance Business is a risk underwriting service business that provides compensation to the insured or policyholder for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by the insured or policyholder due to the occurrence of an uncertain event.
5. Life Insurance Business is a business that provides risk management services that provide payment to the policyholder, insured, or other entitled party in the event the insured dies or survives, or other payments to the policyholder, insured, or other entitled party at a certain time as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.
6. Reinsurance Business is a re-underwriting service business against risks faced by Insurance Companies, guarantee companies, or other reinsurance companies.
7. Sharia General Insurance Business is risk management based on Sharia principles to help each other and protect by providing compensation to participants or policyholders for losses, damages, costs incurred, loss of profit, or legal liability to third parties that may be suffered by participants or policyholders due to the occurrence of an uncertain event.
8. Sharia Life Insurance Business is risk management based on Sharia principles to help each other and protect by providing payments based on the death or survival of participants, or other payments to participants or other entitled parties at a certain time as regulated in the agreement, the amount of which has been determined and/or based on the results of fund management.
9. Sharia Reinsurance Business is risk management based on Sharia principles over risks faced by Sharia Insurance Companies, Sharia guarantee companies, or other Sharia reinsurance companies.
10. General Insurance Company is a company that conducts General Insurance Business.
11. Life Insurance Company is a company that conducts Life Insurance Business.
12. Sharia General Insurance Company is a company that conducts Sharia General Insurance Business.
13. Sharia Life Insurance Company is a company that conducts Sharia Life Insurance Business.

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14. Reinsurance Company is a company that conducts Reinsurance Business.
15. Sharia Reinsurance Company is a company that conducts Sharia Reinsurance Business.
16. Insurance Brokerage Company is a company that conducts consultancy and/or intermediary services in closing insurance, Sharia insurance, guarantee, Sharia guarantee, and handling claim settlements, acting on behalf of and for the benefit of policyholders, insured, participants, or guarantee recipients.
17. Reinsurance Brokerage Company is a company that conducts consultancy and/or intermediary services in placing reinsurance or Sharia reinsurance and handling claim settlements, acting on behalf of and for the benefit of Insurance Companies, Sharia Insurance Companies, guarantee companies, Sharia guarantee companies, Reinsurance Companies, or Sharia Reinsurance Companies that place reinsurance or Sharia reinsurance.
18. Ceding Company means:
    a. General Insurance Company that transfers part of its risk to a Reinsurance Company or another General Insurance Company; b. Sharia General Insurance Company that transfers part of its risk to a Sharia Reinsurance Company, Sharia unit in a Reinsurance Company, another Sharia General Insurance Company, or Sharia unit in a General Insurance Company;
    c. Sharia unit in a General Insurance Company that transfers part of its risk to a Sharia Reinsurance Company, Sharia unit in a Reinsurance Company, Sharia General Insurance Company, or Sharia unit in another General Insurance Company;
    d. Life Insurance Company that transfers part of its risk to a Reinsurance Company; e. Sharia Life Insurance Company that transfers part of its risk to a Sharia Reinsurance Company or Sharia unit in a Reinsurance Company; f. Sharia unit in a Life Insurance Company that transfers part of its risk to a Sharia Reinsurance Company or Sharia unit in a Reinsurance Company; g. guarantee company that transfers part of its risk to a Reinsurance Company; or

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h. Sharia guarantee company or Sharia unit in a guarantee company that transfers part of its risk to a Sharia Reinsurance Company or Sharia unit in a Reinsurance Company.
19. Sharia Principle means Islamic legal principles in insurance activities based on fatwas issued by institutions having authority in determining fatwas in the Sharia field.
20. Sharia Unit means a work unit at the headquarters of an Insurance Company or Reinsurance Company that functions as the head office of offices outside the headquarters conducting business based on Sharia Principles.
21. Insurance Product Linked to Investment, hereinafter referred to as PAYDI, is an insurance product that provides at least protection against death risk and provides benefits referring to the investment results of a fund pool specifically formed for the insurance product, whether declared in unit form or not.
22. Credit Insurance is a line of General Insurance Business that provides coverage for the risk of failure to fulfill the financial obligations of the debtor to the creditor according to the credit agreement.
23. Sharia Financing Insurance is a line of Sharia General Insurance Business that provides management of the risk of failure to fulfill the financial obligations of the debtor to the creditor according to the Sharia financing agreement.
24. Suretyship is a line of General Insurance Business that provides a guarantee of the principal's ability to fulfill obligations according to the main agreement between the principal and the obligee.
25. Suretyship Syariah is a line of Sharia General Insurance Business that provides a guarantee of the principal's ability to fulfill obligations according to the main agreement between the principal and the obligee.
26. Premium is a sum of money determined by the Insurance Company or Reinsurance Company and approved by the policyholder to be paid based on an insurance or reinsurance agreement, or a sum of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits.
27. Contribution is a sum of money determined by the Sharia Insurance Company or Sharia Reinsurance Company and approved by the policyholder to be paid based on a Sharia insurance or Sharia reinsurance agreement to obtain benefits from the Tabarru' fund and/or participant investment fund and to pay management costs, or a sum of money determined based on statutory regulations underlying mandatory insurance programs to obtain benefits.

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28. Insurance Agent is a person who works alone or works for a business entity, acting on behalf of and for the benefit of the Insurance Company or Sharia Insurance Company and meeting requirements to represent the Insurance Company or Sharia Insurance Company in marketing insurance products or Sharia insurance products.
29. Tabarru' Fund is a pool of funds originating from Participants' Contributions, the mechanism of which is used in accordance with the Sharia insurance or Sharia reinsurance agreement.
30. Tanahud Fund is a pool of funds originating from Tanahud Contributions, investment results of the Tanahud fund, qardh from the company fund to the Tanahud fund, and/or Tanahud funds from reinsurers, the use of which is in accordance with the Tanahud hibah deed.
31. Tanahud Hibah Deed is a hibah deed of a sum of funds from participants individually to participants collectively to form the Tanahud Fund.
32. Participant Investment Fund is an investment fund originating from Policyholder or Participant Contributions in Sharia insurance products that provide benefits in the form of fund payments the amount of which is based on the results of fund management.
33. Deed means a written agreement containing specific agreements, along with the rights and obligations of the parties according to Sharia Principles.
34. Tabarru' Deed is a hibah deed in the form of providing funds from one participant to the Tabarru' Fund for the purpose of mutual assistance among participants, which is not commercial in nature and not for commercial purposes.
35. Tijarah Deed is a Deed between participants collectively or individually and the Sharia Insurance Company, Sharia Reinsurance Company, or Sharia Unit for commercial purposes.
36. Wakalah bil Ujrah Deed is a Tijarah Deed that grants authority to the Sharia Insurance Company, Sharia Reinsurance Company, or Sharia Unit as the agent of participants to manage the Tabarru' Fund, Tanahud Fund, and/or Participant Investment Fund, according to the granted authority or competence, with compensation in the form of ujrah (fee).
37. Kafalah bil Ujrah Deed is a Deed in the form of a guarantee provided by the guarantor (kafiil) to a third party to fulfill the obligations of the second party or the guaranteed party (makful 'anhu, asil) with the imposition of a service fee.

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38. Mudharabah Deed is a Tijarah Deed that grants authority to the Sharia Insurance Company, Sharia Reinsurance Company, or Sharia Unit as mudharib (fund manager) to manage the investment of the Tabarru' Fund, Tanahud Fund, and/or Participant Investment Fund, according to the granted authority or competence, with compensation in the form of profit sharing (nisbah) the amount of which has been agreed upon in advance.

39. Mudharabah Musytarakah Deed is a Tijarah Deed that grants authority to the Sharia Insurance Company, Sharia Reinsurance Company, or Sharia Unit as mudharib (fund manager) to manage the investment of the Tabarru' Fund, Tanahud Fund, and/or Participant Investment Fund, which is combined with the assets of the Sharia Insurance Company, Sharia Reinsurance Company, or Sharia Unit, according to the granted authority or competence, with compensation in the form of profit sharing (nisbah) the amount of which is determined based on the composition of the combined assets and has been agreed upon in advance.

40. Mandatory Insurance Program is a program mandated by statutory regulations for all or a specific group in society to obtain protection from certain risks, not including programs mandated by Law to provide basic protection for society with a cross-subsidy mechanism in determining benefits and Premium or Contribution.

41. Electronic System is a series of electronic devices and procedures that function to prepare, collect, process, analyze, store, display, announce, transmit, and/or disseminate electronic information.

42. Information Technology, hereinafter abbreviated as IT, is a technique to collect, prepare, store, process, announce, analyze, and/or disseminate information.

43. Digital Insurance Service is the conduct of insurance or Sharia insurance business provided by Insurance Companies, Sharia Insurance Companies, and Sharia Units in Insurance Companies utilizing IT through electronic media to provide access for prospective policyholders, insured, or participants regarding the closing of insurance products or Sharia insurance products, and can be conducted directly by policyholders, insured, or participants.

44. Financial Services Authority, hereinafter abbreviated as OJK, is an independent state institution that has the function, task, and authority for regulation, supervision, examination, and investigation as referred to in the Law concerning OJK.

45. Between Article 3 and Article 4, 2 (two) articles are inserted, namely Article 3A and Article 3B, so that they read as follows:
    Article 3A
    (1) The business scope for Companies as regulated in Article 2 and Article 3 must be conducted in accordance with the type of insurance business line that corresponds to the business field and the principle of conducting general insurance or life insurance business. (2) Provisions regarding insurance business lines as referred to in paragraph (1) are determined by the OJK.

Article 3B
(1) Insurance Companies, Sharia Insurance Companies, and Sharia Units in Insurance Companies that conduct health insurance business lines must meet specific criteria.
(2) The conduct of health insurance business lines as referred to in paragraph (1) must be implemented by applying adequate prudential principles and risk management.
(3) Provisions regarding specific criteria as referred to in paragraph (1), the application of prudential principles, and adequate risk management as referred to in paragraph (2) are determined by the OJK.

3. The provisions of Article 4 are amended to read as follows:
   Article 4
   The business scope of Insurance Companies or Sharia Insurance Companies can be expanded according to societal needs with the following provisions:
   a. General Insurance Companies may only expand their business scope in:
4. PAYDI business activities;
5. Credit Insurance business activities;
6. Suretyship business activities;
7. fee-based business activities; and/or
8. other business activities based on government assignment, which existed at the time this OJK Regulation was promulgated.

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b. Sharia General Insurance Companies and Sharia Units in General Insurance Companies may only expand their business scope in:

1. PAYDI business activities;

2. Sharia Financing Insurance business activities;

3. Suretyship Syariah business activities;

4. fee-based business activities; and/or

5. other business activities based on government assignment, which existed at the time this OJK Regulation was promulgated.
   c. Life Insurance Companies, Sharia Life Insurance Companies, and Sharia Units in Life Insurance Companies may only expand their business scope in fee-based business activities;
   d. fee-based business activities as referred to in letter a number 4, letter b number 4, and letter c may only be conducted in:

6. administrative service only (ASO) in the context of employee benefits;

7. marketing of products from financial service institutions that have received approval from the OJK and are not insurance or reinsurance products; and

8. cooperation in one ownership.

9. The provisions of Article 5 are added with 1 (one) paragraph, namely paragraph (3), so that it reads as follows:
   Article 5
   (1) Plans to expand the business scope to be conducted by Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies must be included in the business plan of the Insurance Company or Sharia Insurance Company. (2) Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies that will expand their business scope as referred to in Article 4 must obtain prior approval from the OJK. (3) The obligation to obtain approval as referred to in paragraph (2) for administrative service only (ASO) business activities in the context of employee benefits as referred to in Article 4 letter d number 1 is conducted at the time the Insurance Company, Sharia Insurance Company, or Sharia Unit in the Insurance Company first conducts the said business activity.

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5. The provisions of Article 6 are amended to read as follows:
   Article 6
   (1) To obtain approval for the expansion of business scope as referred to in Article 5 paragraph (2), Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies must meet the following provisions:
   a. minimum solvency ratio as referred to in OJK Regulations concerning the financial health of Insurance Companies and Reinsurance Companies and OJK Regulations concerning the financial health of Insurance Companies and Reinsurance Companies with Sharia principles; b. not being subject to administrative sanctions in the form of restrictions on partial or all business activities; and
   c. having a health level with a composite rating of no lower than rating 2 (two) as regulated in OJK Regulations concerning the health level of non-bank financial service institutions.
   (2) In addition to the provisions as referred to in paragraph (1), Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies that expand their business scope in PAYDI, Credit Insurance/Sharia Financing Insurance, and Suretyship or Suretyship Syariah business activities must meet the criteria and requirements as regulated in:
   a. OJK Regulations concerning insurance products and insurance product marketing channels; and b. OJK Regulations concerning insurance products linked to credit or Sharia financing and Suretyship or Suretyship Syariah products, along with their implementing regulations. (3) General Insurance Companies and Sharia General Insurance Companies that expand their business scope in guarantee activities based on government assignment as referred to in Article 4 letter a number 5 and letter b number 5 must establish a guarantee business unit. (4) The guarantee business unit as referred to in paragraph (3) must meet provisions regarding institutional requirements, prudential principles, and adequate risk management, which are further regulated by the OJK.

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6. Between Article 6 and Article 7, insert 1 (one) article, namely Article 6A, which reads as follows:

Article 6A
(1) General Insurance Companies, Sharia General Insurance Companies, and Sharia Units within General Insurance Companies may expand the scope of their business to include Credit Insurance as referred to in Article 4 letter a number 2 and Sharia Financing Insurance as referred to in Article 4 letter b number 2 on:
a. credit/Sharia financing disbursement transactions; or b. trade transactions.

(2) General Insurance Companies, Sharia General Insurance Companies, and Sharia Units within General Insurance Companies conducting Credit Insurance or Sharia Financing Insurance business on credit/Sharia financing disbursement transactions as referred to in paragraph (1) letter a must ensure that the quality of the credit/Sharia financing is in the "performing" category at the time of insurance product issuance.

(3) General Insurance Companies, Sharia General Insurance Companies, and Sharia Units within General Insurance Companies conducting Credit Insurance or Sharia Financing Insurance business on trade transactions as referred to in paragraph (1) letter b must set the risk borne by the seller or supplier at a minimum of 10% (ten percent) of the value of the trade transaction.

7. Article 7 is deleted.

8. The provisions of paragraph (3) and paragraph (4) of Article 8 are amended, and between letter b and letter c of paragraph (1), insert 1 (one) letter, namely letter b1, so that Article 8 reads as follows:

Article 8
(1) In addition to meeting the provisions as referred to in Article 6, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies that expand the scope of their business in fee-based business activities must meet the following provisions:
a. have employees assigned to carry out fee-based business activities who have undergone special education and training in the field of products to be marketed at the head office, offices outside the head office, and/or other locations conducting fee-based business activities; b. have officials responsible for fee-based business activities at the head office, offices outside the head office, and/or other locations conducting fee-based business activities; b1. have adequate facilities and infrastructure; and
c. have a written cooperation agreement.

(2) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies that expand the scope of their business in fee-based business activities and do not meet the provisions as referred to in paragraph (1) and/or in Article 6 must cease fee-based business activities.

(3) In the event that Insurance Companies, Sharia Insurance Companies, and Sharia Units within Insurance Companies are subjected to administrative sanctions in the form of business activity restrictions, Insurance Companies, Sharia Insurance Companies, and Sharia Units within Insurance Companies must cease fee-based business activities until the administrative sanction in the form of business activity restrictions is lifted.

(4) Administrative sanctions in the form of business activity restrictions as referred to in paragraph (3) do not cancel the obligations of Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies towards contracts that have been agreed upon until the end of such contracts and cannot be extended.

9. The provisions of paragraph (1) and paragraph (2) of Article 10 are amended and 1 (one) paragraph is added, namely paragraph (3), so that Article 10 reads as follows:

Article 10
(1) To obtain approval for the expansion of the scope of fee-based business activities as referred to in Article 4 letter d, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must submit a letter of application to the OJK by attaching:
a. specimen of the cooperation agreement; b. policies and procedures for fee-based business activities;
c. proof of having resources capable of supporting business activities; and
d. proof of having adequate infrastructure.

(2) The OJK provides approval or rejection of the application for the expansion of the scope of fee-based business activities within a maximum of 20 (twenty) working days after the application is received completely.

(3) Applications for approval of the expansion of the scope of fee-based business activities are submitted to the OJK electronically through the OJK data communication network system.

10. The provisions of Article 13 are deleted.

11. The title of Part One of Chapter III is amended so that it reads as follows:

Part One
Agency, Brokerage, and Business Conduct

12. The provisions of Article 14 are deleted.

13. The provisions of Article 15 are deleted.

14. The provisions of paragraph (1), paragraph (2), and paragraph (3) of Article 16 are amended, and between paragraph (2) and paragraph (3), insert 1 (one) paragraph, namely paragraph (2a), so that Article 16 reads as follows:

Article 16
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies using Insurance Agents must ensure that Insurance Agents:
a. have an agency certificate corresponding to their field of business that is still valid from a professional certification institution registered with the OJK; b. are registered with the OJK;
c. have an agency agreement with the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company;
d. do not use the name of another Insurance Agent for the issuance of insurance policies for their own benefit or do not provide access to use the name of the respective Insurance Agent for the issuance of insurance policies whose marketing is carried out by another Insurance Agent; e. comply with the code of ethics established by the association and statutory regulations in the field of insurance; and f. do not use strategic job nomenclature in the agency structure.

(2) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies using Insurance Agents must at least:
a. report their Insurance Agents to the association corresponding to their field of business; b. make a written agreement with Insurance Agents marketing their insurance products which at least includes:

1. the code of ethics established by the association corresponding to their field of business in the agency agreement;
2. the obligation of Insurance Agents to comply with the code of ethics or similar provisions established by the Insurance Company or Sharia Insurance Company corresponding to their field of business, along with sanctions imposed for each violation committed by the Insurance Agent;
3. the time limit for the submission of Premiums or Contributions to the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company, in the event that the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company grants authority to the Insurance Agent to receive Premiums or Contributions;
   c. have and apply internal control procedures to ensure that all conduct of Insurance Agents in the marketing of insurance products and/or the issuance of insurance policies complies with:
4. statutory regulations;
5. the code of ethics established by the association corresponding to the business activities of the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company; and
6. internal regulations of the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company.

(2a) Internal control procedures as referred to in paragraph (2) letter c must contain at least:
a. criteria for Insurance Agents; b. the selection process for Insurance Agents;
c. the risk management process in the agency relationship with Insurance Agents; and
d. the procedure for terminating agency with Insurance Agents, including the mechanism for deleting policyholder, insured, or participant data obtained or managed.

(3) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies use Insurance Agents as referred to in paragraph (1), the respective Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must take full responsibility for the consequences arising from insurance issuance conducted by the respective Insurance Agents.

15. The provisions of paragraph (1) and paragraph (3) of Article 17 are amended, and 1 (one) paragraph is added, namely paragraph (4), so that Article 17 reads as follows:

Article 17
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from entering into agreements with Insurance Agents who are still bound by an agency agreement with another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company that has a similar field of business and the same principle of business organization.

(2) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies enter into agreements with Insurance Agents who are still cooperating with another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company that does not have a similar field of business and the same principle of business organization, the respective Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must ensure that the respective Insurance Agents have obtained approval from the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company where the respective Insurance Agents previously worked.

(3) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies enter into agreements with Insurance Agents who have moved from another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company that has a similar field of business and the same principle of business organization, the respective Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must ensure that the respective Insurance Agents:
a. have completed all their obligations to the previous Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company; and b. have not engaged in twisting, namely actions that persuade and/or influence policyholders, insured, or participants to change the specifications of existing insurance policies or replace existing insurance policies with new ones at another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company, and/or purchase active insurance policies at another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company.

(4) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies enter into agreements with Insurance Agents who have moved from another Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company that has a similar field of business and the same principle of business organization, the respective Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from issuing insurance products with a coverage period of more than 1 (one) year from policyholders, insured, or participants held by Insurance Agents from the previous Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company with a duration of less than 1 (one) year.

16. The provisions of Article 18 are amended so that it reads as follows:

Article 18
Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies using Insurance Agents in marketing their products must ensure that in the marketing of insurance products, Insurance Agents have at least carried out the following actions:
a. disclose their identity as a lawful representative of the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company by showing proof of registration from the OJK and a valid agency license for the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company they represent; b. provide information regarding the offered insurance products and important information related to the terms and conditions of the insurance policy correctly, accurately, clearly, and without the potential to mislead policyholders, insured, or participants in every insurance policy issuance in accordance with the insurance product marketed, referring to OJK Regulations regarding consumer protection in the financial services sector;
c. inform policyholders, insured, or participants of the acceptance or rejection of the insurance issuance letter from the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company to the policyholder, insured, or participant within a maximum of 5 (five) working days since the decision to accept or reject coverage;
d. inform documents required for the submission of insurance issuance application forms; e. request documents required for the submission of application forms and other documents required by the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company for insurance issuance; and f. ensure that policyholders, insured, or participants fill out all insurance coverage application forms completely in accordance with the documents submitted.

17. The provisions of letter a of Article 19 are amended and 1 (one) letter is added, namely letter c, so that it reads as follows:

Article 19
In the event that an Insurance Agent is no longer an Insurance Agent of an Insurance Company, Sharia Insurance Company, or Sharia Unit within an Insurance Company, the respective Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company must:
a. notify policyholders, insured, or participants whose insurance issuance was conducted through the respective Insurance Agent; b. provide information on the replacement Insurance Agent or customer service officer; and
c. notify the association.

18. Between Article 22 and Article 23, insert 1 (one) article, namely Article 22A, which reads as follows:

Article 22A
(1) In conducting business activities, Companies must apply business conduct that meets good business ethics standards.

(2) Associations formulate good business ethics standards in a code of ethics.

(3) Associations monitor and supervise the code of ethics as referred to in paragraph (2).

(4) Associations report violations of the code of ethics as referred to in paragraph (2) to the OJK.

19. The provisions of Article 27 are amended so that it reads as follows:

Article 27
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies may grant approval to Insurance Agents through agency agreements or other internal regulations to receive Premium or Contribution payments from policyholders, insured, or participants.

(2) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must ensure that Insurance Agents:
a. have provided proof of receipt of Premium or Contribution payments to policyholders, insured, or participants, in the event that Insurance Agents receive Premium or Contribution payments; and b. do not withhold Premium or Contributions in accordance with the internal regulations of the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company.

20. The provisions of paragraph (1) of Article 37 are amended, so that it reads as follows:

Article 37
(1) Companies or Sharia Units are prohibited from:
a. taking actions that can delay the settlement or payment of claims; and b. taking actions that should not be taken, resulting in delays in claim settlement or payment.

(2) Companies or Sharia Units may appoint an insurance loss adjusting company to assess claims submitted.

(3) In the event that Companies or Sharia Units use insurance loss adjusting companies as referred to in paragraph (2), Companies or Sharia Units are prohibited from ignoring the results of loss assessments without strong arguments.

21. The provisions of Article 40 are amended so that it reads as follows:

Article 40
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must settle claim payments in accordance with:
a. the claim or benefit payment period established in the insurance policy; or b. a maximum of 30 (thirty) days since:

1. an agreement between the policyholder, insured, or participant and the Insurance Company, Sharia Insurance Company, or Sharia Unit within the Insurance Company; or
2. certainty regarding the amount of the claim to be paid,
   whichever is shorter.

(2) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are required to pay claims based on decisions from relevant alternative dispute resolution institutions, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must pay the claims within a maximum of 30 (thirty) days since the decision is established or otherwise established in the decision of the relevant alternative dispute resolution institution.

(3) In the event that the claim settlement process has been referred to court, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must pay claims within a maximum of 30 (thirty) days after the establishment of a final and binding claim payment decision (inkracht) or otherwise established in the court decision.

(4) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from making claim payments through Insurance Brokerage Companies except with the written consent of the policyholder, insured, or participant.

22. Between Article 40 and Article 41, insert 1 (one) article, namely Article 40A, which reads as follows:

Article 40A
(1) In facultative reinsurance support agreements, Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies must settle claim payments in accordance with:
a. the claim or benefit payment period established in the reinsurance/Sharia reinsurance agreement; or b. a maximum of 30 (thirty) days since:

1. an agreement between the Ceding Company and the Reinsurance Company, Sharia Reinsurance Company, or Sharia Unit within the Reinsurance Company; or
2. certainty regarding the amount of the claim to be paid,
   whichever is shorter.

(2) In automatic reinsurance support agreements, Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies must settle claim payments in accordance with the claim or benefit payment period established in the automatic reinsurance support agreement.

(3) In the event that Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies are required to pay claims based on decisions from relevant alternative dispute resolution institutions, Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies must pay the claims within a maximum of 30 (thirty) days since the decision is established or otherwise established in the decision of the relevant alternative dispute resolution institution.

(4) In the event that the claim settlement process has been referred to court, Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies must pay claims within a maximum of 30 (thirty) days after the establishment of a final and binding claim payment decision (inkracht) or otherwise established in the court decision.

(5) Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units within Reinsurance Companies are prohibited from making claim payments through Reinsurance Brokerage Companies except with the written consent of the Ceding Company.

23. The provisions of letter c of paragraph (2) of Article 44 are amended and letter b of paragraph (2) is deleted, so that Article 44 reads as follows:

Article 44
(1) Actuaries of Companies or Sharia Units have the following duties and responsibilities:
a. ensuring the quality of statistical data of the Company or Sharia Unit; b. evaluating the financial health and capital adequacy of the Company or Sharia Unit;
c. designing insurance products, including determining Premium rates and profitability of the respective insurance products;
d. calculating the technical reserves of the Company or Sharia Unit; e. participating in the implementation of risk management in the Company or Sharia Unit; f. evaluating actuarial aspects in the reinsurance process in the Company or Sharia Unit; g. preparing estimates of the Company's or Sharia Unit's ability to meet future obligations; and h. other duties and responsibilities established by the Company or Sharia Unit.

(2) Actuaries of Companies or Sharia Units have the following authorities:
a. signing the actuarial report of the Company or Sharia Unit; b. deleted;
c. signing documents for product approval applications and product reporting; and
d. other authorities established by the Company or Sharia Unit.

(3) In carrying out their duties, actuaries of Companies or Sharia Units must refer to the code of ethics and behavioral standards formulated by professional associations in Indonesia.

24. The title of Part Seven of Chapter III is deleted.

25. The provisions of Article 45 are deleted.

26. The provisions of Article 46 are deleted.

27. The provisions of Article 50 are deleted.

28. The provisions of Article 51 are deleted.

29. Between Chapter III and Chapter IV, insert 1 (one) chapter, namely Chapter IIIA, which reads as follows:

CHAPTER IIIA
DIGITAL INSURANCE SERVICE IMPLEMENTATION

30. Between Article 52 and Article 53, insert 7 (seven) articles, namely Article 52A, Article 52B, Article 52C, Article 52D, Article 52E, Article 52F, and Article 52G, which read as follows:

Article 52A
(1) The scope of Digital Insurance Services is the issuance of insurance products where the entire process is conducted:
a. digitally; and b. without face-to-face interaction with the policyholder, insured, or participant.

(2) Insurance Companies, Sharia Insurance Companies, and Sharia Units within Insurance Companies conducting Digital Insurance Services may conduct digital product development, digital risk selection (underwriting), and digital claim handling.

(3) Provisions regarding the criteria for insurance products that can be conducted through Digital Insurance Services

Digital as referred to in paragraph (1) is determined by OJK.

Article 52B
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from conducting Digital Insurance Services prior to obtaining OJK approval.
(2) The conduct of Digital Insurance Services by Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must first be included in the business plan of the respective entity. (3) To obtain OJK approval as referred to in paragraph (1), Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must submit application documents to OJK at least containing:
a. organizational structure containing functions or work units responsible for the conduct of Digital Insurance Services; b. proof of having human resources with at least 3 (three) years of experience and expertise in the field of Information Technology (IT);
c. policies and procedures for Digital Insurance Services to be conducted;
d. proof of ownership, control, and management of Electronic Systems used in the conduct of Digital Insurance Services; e. proof of readiness to apply risk management, including risk analysis and control results; f. a list of cooperation agreements conducted in Digital Insurance Services; and g. a plan for the conduct of Digital Insurance Services for a period of up to 3 (three) years ahead, at least containing:

1. business strategy, including targets and steps for target realization;
2. IT infrastructure development; and
3. human resource and organizational development.
   (4) OJK provides approval or rejection of the application for the conduct of Digital Insurance Services within a maximum of 20 (twenty) working days after the application is received in complete form.

Article 52C
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies that have obtained approval for the conduct of Digital Insurance Services must submit an application for registration as an Electronic System Operator to the competent authority within a maximum of 30 (thirty) days from the date of issuance of the approval from OJK. (2) The application for registration as an Electronic System Operator as referred to in paragraph (1) is copied to OJK simultaneously with the submission to the competent authority. (3) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from conducting Digital Insurance Services before being registered as an Electronic System Operator with the competent authority. (4) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must submit a copy of the registration certificate as an Electronic System Operator from the competent authority to OJK within a maximum of 7 (seven) days from the date of the registration certificate as an Electronic System Operator. (5) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must conduct Digital Insurance Services within a maximum of 30 (thirty) days from being registered as an Electronic System Operator with the competent authority. (6) In the event that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies:
a. do not meet the provisions in paragraph (5); or b. do not obtain a registration certificate as an Electronic System Operator within a period of 60 (sixty) days from the issuance of the approval from OJK, OJK cancels the Digital Insurance Service approval that has been issued to Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies. (7) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must fulfill all provisions required by the competent authority in the conduct of Electronic Systems.

Article 52D
(1) In the conduct of Digital Insurance Services, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies must use Electronic Systems owned, controlled, and managed by Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies. (2) Electronic Systems used in Digital Insurance Services must be registered in accordance with applicable laws and regulations. (3) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must develop Electronic Systems to ensure the reliability of Electronic Systems. (4) Electronic Systems used in Digital Insurance Services must contain at least:
a. the name of the Insurance Company, Sharia Insurance Company, or Sharia Unit within Insurance Companies; b. requirements and terms of use for Digital Insurance Services;
c. summary of information on insurance products or Sharia insurance products marketed by Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies through Digital Insurance Services;
d. consumer service media information; and e. information that Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are licensed and supervised by OJK.
(5) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must provide communication media for policyholders, insured parties, or participants.

Article 52E
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must fulfill IT risk management provisions as regulated in OJK Regulations regarding the application of IT risk management by non-bank financial service institutions. (2) In the application of risk management for the conduct of Digital Insurance Services, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must form a unit or function tasked with handling the conduct of Digital Insurance Services. (3) The unit or function handling the conduct of Digital Insurance Services as referred to in paragraph (2) has at least the following tasks:
a. assisting the Board of Directors and Board of Commissioners, or equivalents, in planning, implementing, and monitoring IT conduct in Digital Insurance Services; b. supporting the development and/or procurement of IT in Digital Insurance Services;
c. being responsible for the implementation of cooperation with third parties in the conduct of Digital Insurance Services;
d. being responsible for financial transaction data of Digital Insurance Services; e. being responsible for obstacles and problems arising from the conduct of Digital Insurance Services; and f. carrying out other tasks related to the conduct of Digital Insurance Services.

Article 52F
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must have human resources with at least 3 (three) years of experience and expertise in the field of IT. (2) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services must ensure that the human resources as referred to in paragraph (1) are:
a. officials at least 1 (one) level below the Board of Directors or equivalents who oversee the IT function; or b. persons responsible in units or functions tasked with handling the conduct of Digital Insurance Services as referred to in Article 52E paragraph (2).

Article 52G
(1) Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies conducting Digital Insurance Services may cooperate with other parties for the implementation of certain functions, in the form of:
a. cooperation with payment service providers, for the payment of Premiums or Contributions to Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies; b. cooperation with IT providers; and/or
c. cooperation with other parties in improving operational quality and/or services of Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies.
(2) In the implementation of cooperation as referred to in paragraph (1) letter b, Insurance Companies, Sharia Insurance Companies, or Sharia Units within Insurance Companies are prohibited from:
a. outsourcing Digital Insurance Services to other parties; and b. transferring the management of data of prospective policyholders, insured parties, or participants.

31. The provisions of paragraph (3) of Article 54 are amended and between paragraph (2) and paragraph (3) one paragraph is inserted, namely paragraph (2a), so that Article 54 reads as follows:

Article 54
(1) Sharia insurance policies and Sharia reinsurance agreements must contain Akad Tabarru’ and Akad Tijarah.
(2) Sharia annuity policies for pension programs must contain Akad Hibah Tanahud and Akad Tijarah.
(2a) Sharia Suretyship policies must contain Akad Kafalah bil Ujrah.
(3) Akad Tijarah as referred to in paragraph (1) and paragraph (2) may be Akad Wakalah bil Ujrah, Akad Mudharabah, Akad Mudharabah Musytarakah, and/or Akad Kafalah bil Ujrah.
(4) The use of one of the Akad Tijarah as referred to in paragraph (3) must be conducted consistently until the end of the Sharia insurance policy.
(5) In the event of an agreed change in Akad Tijarah, the use of the new Akad Tijarah can only be applied to new Sharia insurance policies.
(6) In the event of a change in Akad Tijarah as referred to in paragraph (5) occurs for the management of Tabarru’ Funds or Tanahud Funds, Sharia Insurance Companies, Sharia Reinsurance Companies, or Sharia Units must separate Tabarru’ Funds or Tanahud Funds managed based on the old Akad Tijarah from Tabarru’ Funds or Tanahud Funds managed based on the new Akad Tijarah. (7) Sharia Insurance Companies, Sharia Reinsurance Companies, or Sharia Units may use Akad Tijarah in the framework of managing investments from Tabarru’ Funds or Tanahud Funds that are different from Akad Tijarah in other activities. (8) Based on Akad Wakalah bil Ujrah, Akad Mudharabah, and Akad Mudharabah Musytarakah, Sharia Insurance Companies, Sharia Reinsurance Companies, or Sharia Units must bear all losses occurring in risk management activities and/or investment management activities caused by intentional errors, negligence, or breach of contract committed by Sharia Insurance Companies, Sharia Reinsurance Companies, or Sharia Units.

32. The provisions of Article 55 are amended so that they read as follows:

Article 55
(1) Sharia Insurance Companies, Sharia Reinsurance Companies, or Sharia Units may use Akads other than those referred to in Article 54 paragraph (1), paragraph (2), and paragraph (2a) in the conduct of Sharia Insurance Business or Sharia Reinsurance Business. (2) The use of Akads as referred to in paragraph (1) must be conducted based on fatwas or statements of Sharia compliance issued by institutions having authority in determining fatwas in the field of Sharia.

33. Between Article 57 and Article 58, one article is inserted, namely Article 57A, so that it reads as follows:

Article 57A
(1) Akad Kafalah bil Ujrah is used in Suretyship Syariah activities.
(2) Akad Kafalah bil Ujrah must contain at least:
a. objects/activities guaranteed; b. rights and obligations of policyholders or participants as the guaranteed party (makful ‘anhu, ashil);
c. rights and obligations of the Company as the guarantor (kafiil); and
d. the amount, method, and timing of the deduction of ujrah (fee).

34. The title of CHAPTER V is amended so that it reads as follows:

CHAPTER V
TRANSFER OF UNDERWRITING PORTFOLIO

35. Between Article 59 and Article 60, one article is inserted, namely Article 59A, so that it reads as follows:

Article 59A
(1) The transfer of underwriting portfolios is conducted based on:
a. initiative by the Company and Sharia Units in implementing business plans; or b. OJK order.
(2) The transfer of underwriting portfolios as referred to in paragraph (1) is conducted by transferring all assets and liabilities of the transferred underwriting portfolio.

36. The provisions of paragraph (1), paragraph (2), paragraph (3), paragraph (5), and paragraph (6) of Article 60 are amended and between paragraph (2) and paragraph (3) one paragraph is inserted, namely paragraph (2a), so that Article 60 reads as follows:

Article 60
(1) The transfer of underwriting portfolios by Companies or Sharia Units must first obtain OJK approval.
(2) The transfer of underwriting portfolios as referred to in paragraph (1) must meet the following requirements:
a. not reducing the rights of policyholders, insured parties, participants, or Ceding Companies; b. conducted to Companies or Sharia Units having similar business fields and the same principles of business conduct;
c. conducted to Companies or Sharia Units that have similar products or similar reinsurance agreements; and
d. not causing the Company or Sharia Unit receiving the transfer to violate laws and regulations in the field of insurance.
(2a) Applications for approval as referred to in paragraph (1) are submitted by Companies or Sharia Units to OJK by attaching documents:
a. financial position reports before the transfer; b. letters of approval for the transfer of rights and obligations from the Company or Sharia Unit receiving the transfer;
c. inventory of transferred underwriting/participation portfolios; and/or
d. details of assets and liabilities of the portfolios to be transferred.
(3) OJK provides letters of approval or rejection of the portfolio transfer as referred to in paragraph (1) within a maximum of 30 (thirty) working days after the application letter is received in complete form and OJK determines that direct inspection is not required. (4) In the event that OJK considers it necessary to conduct direct inspection regarding the portfolio transfer, OJK will issue a notification of direct inspection within a maximum of 14 (fourteen) working days after the application letter for portfolio transfer approval is received by OJK. (5) In the event that OJK conducts direct inspection as referred to in paragraph (4), OJK provides letters of approval or rejection of the portfolio transfer within a maximum of 14 (fourteen) working days since the final direct inspection result report is established. (6) After obtaining approval as referred to in paragraph (1), Companies or Sharia Units transferring underwriting portfolios must first:
a. notify policyholders, insured parties, participants, or Ceding Companies; and b. announce the transfer in national electronic and/or print media and the Company or Sharia Unit’s website, within a maximum of 10 (ten) working days from the date of the letter of approval for portfolio transfer. (7) Notifications and announcements as referred to in paragraph (6) must contain at least:
a. the period for rejecting the portfolio transfer; b. consequences arising from the rejection of the portfolio transfer; and
c. mechanisms for resolving the rights of policyholders, insured parties, participants, or Ceding Companies who reject the portfolio transfer.

37. The provisions of Article 62 are amended so that they read as follows:

Article 62
(1) The return of rights of policyholders, insured parties, participants, or Ceding Companies as referred to in Article 61 paragraph (2) is conducted in accordance with the provisions of each insurance policy or reinsurance agreement/Sharia reinsurance agreement. (2) In the event that insurance policies or reinsurance agreements/Sharia reinsurance agreements do not regulate regarding the cancellation or return of rights of policyholders, participants, Ceding Companies, and/or related parties, the cancellation or return of rights is conducted in accordance with general insurance practices or general Sharia insurance practices. (3) For Sharia Insurance Companies, general Sharia insurance practices are conducted in the event of the termination of Sharia insurance policies based on:
a. fatwas or statements of Sharia compliance issued by institutions having authority in determining fatwas in the field of Sharia; or b. opinions from Sharia Supervisory Boards, in the event that there are no fatwas or statements of Sharia compliance as referred to in letter a.

38. The explanation of Article 63 is amended as contained in the explanation.

39. CHAPTER VIII is repealed.

40. The provisions of Article 72 are repealed.

41. The provisions of Article 73 are repealed.

42. The provisions of Article 76 are amended so that they read as follows:

Article 76
Every Insurance Company, Sharia Insurance Company, or Sharia Unit within Insurance Companies individually or in a consortium that conducts Mandatory Insurance Programs as referred to in Article 75 paragraph (2) must fulfill OJK Regulations regarding insurance products and insurance product marketing channels.

43. Between CHAPTER IX and CHAPTER X, one chapter is inserted, namely CHAPTER IXA, so that it reads as follows:

CHAPTER IXA
CONSUMER AND SOCIETY PROTECTION

44. Between Article 76 and Article 77, one article is inserted, namely Article 76A, so that it reads as follows:

Article 76A
(1) Companies or Sharia Units apply principles of consumer and society protection in the conduct of business in accordance with applicable laws and regulations regarding consumer protection in the financial services sector. (2) The mechanisms and procedures for applying the principles of consumer and society protection as referred to in paragraph (1) are conducted in accordance with OJK Regulations regarding consumer and society protection in the financial services sector and OJK Regulations related to consumer protection in the financial services sector.

45. The provisions of Article 77 are amended so that they read as follows:

Article 77
(1) Violations of the provisions as referred to in Article 2, Article 3, Article 3B paragraph (1) and paragraph (2), Article 4, Article 5 paragraph (1) and paragraph (2), Article 6 paragraph (3) and paragraph (4), Article 6A paragraph (2) and paragraph (3), Article 8 paragraph (1), paragraph (2), and paragraph (3), Article 9, Article 12, Article 16, Article 17, Article 18, Article 19, Article 20, Article 22A paragraph (1), Article 24, Article 25 paragraph (1), Article 26, Article 27 paragraph (2), Article 28, Article 29 paragraph (5), paragraph (6), and paragraph (7), Article 30, Article 31, Article 32, Article 33, Article 34, Article 35, Article 36, Article 37 paragraph (1) and paragraph (3), Article 38 paragraph (1) and paragraph (3), Article 39 paragraph (1), paragraph (2) and paragraph (3), Article 40, Article 40A, Article 41, Article 44 paragraph (3), Article 47, Article 48 paragraph (1) and paragraph (2), Article 49, Article 52B paragraph (1), Article 52C paragraph (1), paragraph (3), paragraph (4), paragraph (5), and paragraph (7), Article 52D, Article 52E paragraph (1) and paragraph (2), Article 52F, Article 52G paragraph (2), Article 53, Article 54 paragraph (1), paragraph (2), paragraph (2a), paragraph (4), paragraph (6), and paragraph (8), Article 55 paragraph (2), Article 56 paragraph (2) and paragraph (4), Article 57 paragraph (2), Article 57A paragraph (2), Article 58 paragraph (2), Article 59 paragraph (2), Article 60 paragraph (1), paragraph (6) and paragraph (7), Article 61, Article 63, Article 65 paragraph (2), Article 66 paragraph (1), paragraph (4), and paragraph (5), Article 67 paragraph (3), paragraph (5), paragraph (6), and paragraph (7), Article 68, Article 69, Article 71 paragraph (1), paragraph (2), paragraph (3), paragraph (5), paragraph (6), and paragraph (7), Article 75 paragraph (1), and Article 76 are subject to administrative sanctions in the form of:
a. written warnings; b. reduction of health level;
c. restrictions on business activities, for part or all of business activities;
d. prohibitions on marketing insurance products or Sharia insurance products for specific business lines; and/or e. prohibitions on becoming shareholders, controllers, Directors, Board of Commissioners, or equivalents of shareholders, controllers, Directors, and Board of Commissioners, or holding executive positions below the Board of Directors, or equivalents of executive positions below the Board of Directors, in insurance companies. (2) Violations of the provisions as referred to in Article 10, Article 16 paragraph (1), Article 52B paragraph (1), and Article 60 paragraph (1) are subject to additional administrative sanctions in the form of administrative fines of Rp100,000,000.00 (one hundred million rupiah). (3) Violations of the provisions as referred to in Article 63 paragraph (2) are subject to additional administrative sanctions in the form of administrative fines of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah). (4) In the event of violations of the provisions as referred to in paragraph (1), and the violations have been corrected, OJK imposes written warning sanctions that end automatically. (5) In the event that violations of the provisions as referred to in paragraph (1) have been fulfilled, OJK revokes the written warning sanctions.

46. Between Article 77 and Article 78, one article is inserted, namely Article 77A, so that it reads as follows:

Article 77A
In addition to imposing administrative sanctions as referred to in Article 77 paragraph (1), OJK has the authority to conduct re-evaluations of the main parties of the Company.

47. Between CHAPTER XI and CHAPTER XII, one chapter is inserted, namely CHAPTER XIA, so that it reads as follows:

CHAPTER XIA
OTHER PROVISIONS

48. Between Article 79 and Article 80, one article is inserted, namely Article 79A, so that it reads as follows:

Article 79A
OJK, based on certain considerations, may provide approvals or policies that differ from this OJK Regulation.

Article II

1. Administrative sanctions imposed by the OJK based on OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies are declared to remain valid.
2. Violations of OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, discovered during the effective period of this OJK Regulation, shall still be subject to administrative sanctions based on the provisions in OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies.
3. Companies subject to administrative sanctions based on OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, which have not yet been able to overcome the causes of the imposition of administrative sanctions, shall be subject to further administrative sanctions in accordance with this OJK Regulation.
4. The expansion of the business scope in the form of other business activities by General Insurance Companies and Sharia General Insurance Companies based on assignment from the government as referred to in Article 4 letter a number 5 and letter b number 5, may only be carried out until December 31, 2030.
5. The obligation to establish a guarantee business unit as referred to in Article 6 paragraph (3) shall be implemented no later than 6 (six) months since this OJK Regulation becomes effective.
6. Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies that have conducted Digital Insurance Services prior to the effective date of this OJK Regulation, must adjust to the provisions of Article 52A through Article 52G within a period of no later than 6 (six) months since this OJK Regulation becomes effective.
7. The provisions as referred to in Article 6A paragraph (3) shall become effective since this OJK Regulation is promulgated.
8. This OJK Regulation shall become effective 6 (six) months since the date of promulgation.
   https://jdih.ojk.go.id/

This copy is consistent with the original
Director of Legal Development
Legal Department signed
Aat Windradi

In order that everyone may know it, it is ordered to promulgate this Financial Services Authority Regulation by placing it in the State Journal of the Republic of Indonesia.
Determined in Jakarta on December 20, 2024
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR
Promulgated in Jakarta on December 23, 2024
MINISTER OF LAW OF THE REPUBLIC OF INDONESIA,
SUPRATMAN ANDI AGTAS
STATE JOURNAL OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 48/OJK signed signed https://jdih.ojk.go.id/

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 36 OF 2024
CONCERNING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 69/POJK.05/2016 CONCERNING THE CONDUCT OF BUSINESS BY INSURANCE COMPANIES, SHARIA INSURANCE COMPANIES, REINSURANCE COMPANIES, AND SHARIA REINSURANCE COMPANIES

I. GENERAL
Law Number 4 of 2023 Concerning the Development and Strengthening of the Financial Sector provides the basis and foundation for strengthening in the financial services sector, including in the insurance industry. Several strengthening of regulations in the field of insurance relate to the expansion of the business scope, the conduct of Insurance Agents, and the resolution of claim handling and complaints through a process that is fast, simple, easily accessible, and fair in order to strengthen consumer protection aspects. These regulatory strengthening measures are expected to support and create a healthy insurance industry ecosystem and foster public trust in the insurance industry.

The fulfillment of the mandate of Article 5 paragraph (5) of Law Number 4 of 2023 Concerning the Development and Strengthening of the Financial Sector regarding the strengthening of regulations on the expansion of the business scope has been regulated in several OJK Regulations, namely OJK Regulation Number 20/POJK.05/2023 Concerning Insurance Products Linked to Credit or Sharia Financing and Suretyship Products or Sharia Suretyship and OJK Regulation Number 8/POJK.05/2024 Concerning Insurance Products and Insurance Product Marketing Channels. With the establishment of these two OJK Regulations, regulations regarding the expansion of the business scope regulated in OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies need to be harmonized. Furthermore, as fulfillment of the mandate of Article 28 paragraph (9) and Article 31 paragraph (5) of Law Number 4 of 2023 Concerning the Development and Strengthening of the Financial Sector, it is necessary to refine regulations regarding the conduct of Insurance Agents and the claim handling process in order to strengthen policyholder protection. This is a manifestation of the balance in fulfilling the OJK's function and duties as a prudential supervisor of the insurance industry and a protector of consumers in the financial services sector. With this regulatory refinement, it is hoped that public trust in the Indonesian insurance industry will increase.

On the other hand, as a result of technological development in the financial services sector, the use of IT in the conduct of digital insurance business has become a necessity and convenience for industry players. The conduct of digital insurance business can increase the effectiveness and efficiency of operational and business activities as well as service quality to policyholders, insured parties, or participants. More comprehensive regulations on digital insurance services in this OJK Regulation are expected to provide legal certainty for both insurance industry players and policyholders, insured parties, or participants. In addition, regulations regarding the mechanism for the transfer of existing insurance portfolios are considered not comprehensive enough and no longer in line with the current state of the insurance industry. As an effort to provide legal certainty in the event of liquidation, strengthen consumer protection aspects, and ensure going concern for Companies receiving the transfer of portfolios, it is necessary to adjust the regulations regarding the mechanism for the transfer of insurance portfolios. This OJK Regulation is a refinement of OJK Regulation Number 69/POJK.05/2016 Concerning the Conduct of Business by Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies. The refinements made include, among others, the expansion of the business scope, the conduct of Insurance Agents, claim handling, the conduct of digital insurance business, the application of Sharia principles, and the mechanism for the transfer of insurance portfolios.

II. ARTICLE BY ARTICLE
Article I
Number 1
Article 1
It is clear enough.
Number 2
Article 3A
Paragraph (1)
Insurance business lines include:
a. General Insurance Business Line; b. Life Insurance Business Line;
c. Sharia General Insurance Business Line; and
d. Sharia Life Insurance Business Line.
Paragraph (2)
It is clear enough.
Article 3B
It is clear enough.
Number 3
Article 4
Letter a
Number 1
It is clear enough.
Number 2
It is clear enough.

Number 3
It is clear enough.
Number 4
The term "fee-based business activities" refers to business activities to market financial service products, including mutual funds or other products that are financial service institution products that have received permission from the OJK. Number 5 Examples of other business activities based on assignment from the government are assignments for the guarantee of people's business credit (KUR). Letter b It is clear enough. Letter c It is clear enough. Letter d Number 1 The term "administrative service only (ASO) in the context of employee benefits" refers to the provision of service services by Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies in the management of health facilities or pension programs of a company for its employees. Number 2 Marketing products from financial service institutions, including, selling mutual fund securities based on a cooperation contract with the mutual fund manager managing the mutual fund. Number 3 Cooperation in single ownership is carried out in accordance with OJK Regulations regarding business licensing and institutional structure of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies. Number 4
Article 5
It is clear enough.
Number 5
Article 6
It is clear enough.
Number 6
Article 6A
Paragraph (1)
It is clear enough.
Paragraph (2)
At the time of closing Credit Insurance or Sharia Financing Insurance products, General Insurance Companies, Sharia General Insurance Companies, and Sharia Units in General Insurance Companies conduct analysis to ensure that the quality of the credit/Sharia financing to be covered has a current credit/Sharia financing quality in accordance with provisions of legislation in the fields of banking, financing business, microfinance institutions, or other fund providers. Paragraph (3) The term "trade transaction value" refers to the trade receivable balance at the time the claim occurs. Number 7
Article 7
Deleted.
Number 8
Article 8
Paragraph (1)
Letter a
The term "employees assigned to carry out fee-based business activities" refers to employees of Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies, and/or sales personnel (company agents) who have undergone special education and training in the field of products to be marketed and have proof of membership, certificates, and/or permits unless otherwise regulated in legislation governing the marketed products. Letter b It is clear enough. Letter b1 Possess adequate facilities and infrastructure, including sufficient human resources, standard operating procedures, and adequate information systems and recording. Letter c It is clear enough. Paragraph (2) Ceasing fee-based business activities, including:
a. for administrative service only (ASO) is not making new agreements or extending agreements that have expired; and b. for the sale of mutual fund securities based on a cooperation contract with the mutual fund manager managing the mutual fund is ceasing the marketing of mutual fund products. Paragraph (3) It is clear enough.

Paragraph (4)
It is clear enough.
Number 9
Article 10
It is clear enough.
Number 10
Article 13
Deleted.
Number 11
It is clear enough.
Number 12
Article 14
Deleted.
Number 13
Article 15
Deleted.
Number 14
Article 16
Paragraph (1)
Letter a
It is clear enough.
Letter b
It is clear enough.
Letter c
It is clear enough.
Letter d
The practice of binding agreements with other Insurance Agents or using the name of such Insurance Agent is known as the proxy agent practice.
Example: General Insurance Company A has bound an agency agreement with Insurance Agent X, and General Insurance Company B has bound an agency agreement with Insurance Agent Y. However, in practice, the marketing of insurance products at General Insurance Company A is carried out by Insurance Agent Y and at the time of closing uses the name of Insurance Agent X, with an agreement between Insurance Agent X and Insurance Agent Y. The commission for the closing of insurance products from General Insurance Company A becomes the property of Insurance Agent Y. Letter e It is clear enough. Letter f Using strategic position nomenclature in the agency structure, including including the position of director on Insurance Agents (director of agent) in the agency structure or other nomenclatures that can cause ambiguity with the positions contained in the Insurance Company, Sharia Insurance Company, and Sharia Unit in the Insurance Company in question. Paragraph (2) It is clear enough. Paragraph (2a) Letter a Criteria that need to be met by Insurance Agents include minimum requirements that need to be met such as experience with a certain level of position and minimum experience time, certification, and training. Letter b It is clear enough. Letter c Risk management processes in agency relationships include aspects of anti-fraud strategy and protection of policyholders, insured parties, or participants. Risk management processes for the aspect of protection of policyholders, insured parties, or participants include processes:

1. securing the confidentiality of data of policyholders, insured parties, or participants who are covered by Insurance Agents;
2. providing information that is correct, accurate, clear, and not misleading in every insurance policy closing;
3. receiving Premiums or Contributions in every insurance policy closing in the event that the Insurance Company, Sharia Insurance Company, or Sharia Unit in the Insurance Company provides approval for the Insurance Agent to receive Premiums or Contributions; and
4. closing insurance policies of policyholders, insured parties, or participants owned by Insurance Agents from previous Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies with a period of less than 1 (one) year.
   Letter d
   It is clear enough.
   Paragraph (3)
   It is clear enough.
   Number 15
   Article 17
   Paragraph (1)
   The term "Insurance Company, Sharia Insurance Company, or Sharia Unit in another Insurance Company that has a similar business field and the same principle of business conduct" refers to:
   a. Sharia General Insurance Companies with other Sharia General Insurance Companies and Sharia Units from General Insurance Companies; b. Sharia Life Insurance Companies with other Sharia Life Insurance Companies and Sharia Units from Life Insurance Companies;
   c. General Insurance Companies with other General Insurance Companies; or
   d. Life Insurance Companies with other Life Insurance Companies.
   Paragraph (2)
   It is clear enough.
   Paragraph (3)
   Letter a
   The application of these provisions, among others, can be carried out through:
5. the existence of a statement letter from the Insurance Agent that the Insurance Agent has fulfilled all obligations related to the closing of insurance policies on previous insurance;
6. the existence of a clearance letter or confirmation letter from the Insurance Company, Sharia Insurance Company, and Sharia Unit in the Insurance Company where the Insurance Agent previously worked;
   and/or
7. a cooperation agreement between the Insurance Company, Sharia Insurance Company, and Sharia Unit in the Insurance Company with the Insurance Agent stating that the Insurance Agent has fulfilled all obligations at the previous Insurance Company, Sharia Insurance Company, or Sharia Unit in the Insurance Company.
   Letter b
   The application of these provisions, among others, can be carried out through:
8. the existence of a statement letter from the Insurance Agent that the Insurance Agent will not perform twisting; and/or
9. a cooperation agreement between the Insurance Company, Sharia Insurance Company, and Sharia Unit in the Insurance Company with the Insurance Agent stating that the Insurance Agent will not perform twisting and that the Insurance Company, Sharia Insurance Company, and Sharia Unit in the Insurance Company monitor the cooperation agreement.

Paragraph (4)
The term "performing the closing of insurance products for policyholders, insured parties, or participants owned by Insurance Agents from previous Insurance Companies, Sharia Insurance Companies, or Sharia Units in Insurance Companies" refers to the closing of such insurance products being carried out by the Insurance Agent with the approval of the Insurance Company, Sharia Insurance Company, or Sharia Unit in the Insurance Company. Number 16
Article 18
Letter a
It is clear enough.
Letter b
The scope of information regarding insurance products, including:
a. benefits; b. conditions and documents for claim submission;
c. risks covered and excluded;
d. the amount and method of payment of Premiums or Contributions; and e. costs charged to policyholders, insured parties, or participants.
Important information includes:
a. conditions under which coverage becomes void; and b. lapse conditions and their restoration.
Letter c
Acceptance or rejection of coverage can be carried out through electronic communication media or other non-electronic media.
Letter d
It is clear enough.
Letter e
It is clear enough.
Letter f
It is clear enough.
Number 17
Article 19
Letter a
Notifications can be carried out through communication media including:

1. notification letters;
2. short message system;
3. instant messaging service applications;
4. electronic mail; or
5. websites.
   Letter b
   It is clear enough.

Letter c
Notifications to associations are intended to mitigate the risk of poaching practices (poaching of Insurance Agents) and/or twisting (transfer of insurance policies).
Number 18
Article 22A
Paragraph (1)
It is clear enough.
Paragraph (2)
Good business ethics standards include, among others, regulations prohibiting:

1. twisting practices;
2. poaching practices that result in unhealthy competition; and/or
3. the provision of unreasonable commissions.
   The term "poaching" refers to the practice of poaching Insurance Agents from one company to another without any time gap.
   Paragraph (3)
   It is clear enough.
   Paragraph (4)
   It is clear enough.
   Number 19
   Article 27
   Paragraph (1)
   The term "giving approval" is to provide a limitation that Insurance Agents can only receive Premium or Contribution payments from policyholders, insured parties, or participants after obtaining approval from the Insurance Company, Sharia Insurance Company, or Sharia Unit in the Insurance Company. Paragraph (2) It is clear enough. Number 20
   Article 37
   Paragraph (1)
   Letter a
   Claim payments include claim recovery by Reinsurance Companies to Ceding Companies.
   Performing actions that can delay the resolution or payment of claims, including:
   a. extending the claim resolution and payment process by requesting the submission of specific documents, which is then followed by requesting the submission of other documents that essentially contain the same information. In the event that other documents that essentially contain the same information are requested by other interested parties in the closing of insurance products, e.g., hospitals, police, this is not considered as actions that can delay the resolution or payment of claims; b. delaying claim resolution and payment because of waiting for the resolution and/or payment of claims from Reinsurance Companies;
   c. delaying claim resolution and payment because of reasons related to the resolution of claims for other insured objects in 1 (one) same insurance policy, e.g., other insured objects in 1 (one) same insurance policy:
4. in fire insurance policies there are 3 (three) risk objects covered, namely fire in warehouses, stock goods, and business interruption; or
5. in the event of disagreement or indications of fraud in the claim submission for one of the risk objects, the Company still carries out the claim resolution process for the other 2 (two) risk objects that are not indicated as fraud or the other 2 (two) risk objects that already comply with the insurance policy;
   d. delaying the appointment of an insurance loss assessor company, if the services of an insurance loss assessor company are needed in the claim resolution process; and e. applying claim resolution procedures that do not comply with general insurance business practices. Letter b Performing actions that should not be performed, including:
   a. carrying out additional claim resolution procedures not listed in the insurance policy, not including additional procedures carried out for investigation purposes if there are indications of fraud, e.g., the Company appoints a surveyor or insurance loss assessor company at a time when the main cause of the covered risk has been met or can already be proven; b. conducting investigations without first requesting information and/or claim completeness documents from the policyholder, insured party, or participant submitting the claim. Requests for information and/or claim completeness documents include confirmation of the chronology of the insured event and all claim documents; and
   c. filing a lawsuit in court before attempting to resolve disputes through mutual consultation with the policyholder, insured party, or participant submitting the claim.
   Paragraph (2)
   The term "insurance loss assessor company" refers to a company that conducts business activities for claim assessment services and/or consultation services for insurance objects.
   Paragraph (3)
   It is clear enough.
   Number 21
   Article 40
   Paragraph (1)
   Claim payment resolution, including payment for all services related to the claim resolution process, including, payment for insurance loss assessor services and claim survey services.
   Paragraph (2)
   It is clear enough.
   Paragraph (3)
   It is clear enough.
   Paragraph (4)
   The term "written approval" refers to the existence of a statement letter or power of attorney from the policyholder, insured party, or participant to the insurance broker.
   Number 22
   Article 40A
   Paragraph (1)
   The term "claim payment resolution" refers to the resolution of claim recovery payments to Ceding Companies, including payment for all services related to the claim resolution process that are the burden of Reinsurance Companies, Sharia Reinsurance Companies, or Sharia Units in Reinsurance Companies, such as payment for insurance loss assessor services and claim survey services. Paragraph (2) Documents used in claim resolution on automatic reinsurance use the statement of account (SOA) document containing the off-set value between the obligation to pay Premiums or Contributions by Ceding Companies and the right to claim recovery from Reinsurance Companies.

Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Number 23
Article 44
It is clear enough.
Number 24
Deleted.
Number 25
Article 45
Deleted.
Number 26
Article 46
Deleted.
Number 27
Article 50
Deleted.
Number 28
Article 51
Deleted.
Number 29
It is clear enough.
Number 30
Article 52A
Paragraph (1)
Examples of Digital Insurance Services:

1. Insurance Company A sells motor vehicle insurance products through the Company's website where the product selection, Premium payment, and electronic policy (e-policy) receipt processes are carried out digitally.
2. Insurance Company A sells motor vehicle insurance products through e-commerce that is connected in real time to the Company's system through an application program interface (API).
   Letter a
   It is clear enough.
   Letter b
   The term "without face-to-face" means no meeting either directly or online.
   Paragraph (2)
   It is clear enough.

Paragraph (3)
It is clear enough.
Article 52B
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
Letter a
It is clear enough.
Letter b
The term "expertise in the field of IT" refers to expertise and experience in the development and management of databases (database), networks, Electronic System security, and programming.
Examples of proof of having expertise include having certifications.
Letter c
It is clear enough.
Letter d
Proof of ownership, control, and authority over Electronic Systems, including, proof of ownership of websites (website) or applications.
Letter e
It is clear enough.
Letter f
It is clear enough.
Letter g
It is clear enough.
Paragraph (4)
It is clear enough.
Article 52C
Paragraph (1)
It is clear enough.
Paragraph (2)
It is clear enough.
Paragraph (3)
It is clear enough.
Paragraph (4)
It is clear enough.
Paragraph (5)
It is clear enough.
Paragraph (6)
It is clear enough.
Paragraph (7)
Fulfillment of provisions mandated by competent institutions including the use of electronic signatures in the conduct of Digital Insurance Services in accordance with provisions of legislation.

Article 52D

Paragraph (1)
What is meant by "owned" is that the Electronic System is owned by the Company independently and/or in cooperation/with an IT service provider for the benefit of the Company.
What is meant by "controlled" is the ability to develop, change, and delete the Electronic System.

Paragraph (2)
It is clear enough.

Paragraph (3)
What is meant by "development of the Electronic System" includes maintenance of the Electronic System.

Paragraph (4)
It is clear enough.

Paragraph (5)
Communication media used, among others, are email, call centers, chatbots.

Article 52E

Paragraph (1)
It is clear enough.

Paragraph (2)
Units or functions tasked with handling the implementation of Digital Insurance Services may hold dual roles with other units or functions according to the scale and complexity of the company's business, provided that no conflict of interest arises.

Paragraph (3)
It is clear enough.

Article 52F

Paragraph (1)
See the explanation of Article 52B paragraph (3) letter b.

Paragraph (2)
Letter a
What is meant by "official at least 1 (one) level below the Board of Directors or equivalent who oversees the IT function" is an executive official as referred to in the OJK Regulation regarding business licensing and institutionalization of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies, who oversees the IT function.

Letter b
It is clear enough.

Article 52G

Paragraph (1)
Letter a
Example: cooperation between an Insurance Company and a payment service company.

Letter b
Cooperation with IT providers, among others, the Company enters into cooperation with other parties in the context of providing IT in the form of websites and/or mobile applications owned by the Company.

Letter c
Cooperation with other parties, among others, with e-commerce and travel sites/applications.

Paragraph (2)
Letter a
Examples of outsourcing Digital Insurance Services to other parties:

1. IT service providers independently operate websites in insurance or Sharia insurance product underwriting activities; and/or
2. The Company does not have control over the said websites.

Letter b
Examples of transferring the management of data of prospective policyholders, insureds, or participants:

1. The Company does not have real-time access to data of prospective policyholders, insureds, or participants from the website in insurance or Sharia insurance product underwriting activities; and/or
2. The database of prospective policyholders, insureds, or participants from the website in insurance or Sharia insurance product underwriting activities is stored in a network managed by the IT service provider.

Number 31
Article 54
It is clear enough.

Number 32
Article 55
It is clear enough.

Number 33
Article 57A
It is clear enough.

Number 34
It is clear enough.

Number 35
Article 59A

Paragraph (1)
Letter a
It is clear enough.

Letter b
OJK orders may be issued by considering the results of OJK's evaluation of the Company's condition, among others:

1. The Company does not have adequate human resources;
2. The Company does not have adequate infrastructure in portfolio management; and
3. The Company does not apply adequate risk management in portfolio management,
   which can cause potential material and/or significant losses to the Company's financial condition, policyholders', insureds', or participants' rights, and/or have a negative impact on financial system stability.

Paragraph (2)
The transfer of all assets and liabilities is carried out based on an agreement between the Company transferring the insurance portfolio and the Company receiving the insurance portfolio, considering reinsurance support.

Number 36
Article 60

Paragraph (1)
It is clear enough.

Paragraph (2)
Letter a
It is clear enough.

Letter b
See the explanation of Article 17 paragraph (1).

Letter c
It is clear enough.

Letter d
It is clear enough.

Paragraph (2a)
It is clear enough.

Paragraph (3)
It is clear enough.

Paragraph (4)
It is clear enough.

Paragraph (5)
It is clear enough.

Paragraph (6)
It is clear enough.

Paragraph (7)
It is clear enough.

Number 37
Article 62
It is clear enough.

Number 38
Article 63

Paragraph (1)
It is clear enough.

Paragraph (2)
Reports on the results of the implementation of insurance portfolio transfers among others contain the agreement/deed/minutes of transfer signed by the Company or Sharia Unit transferring and receiving the transfer, which states at least:
a. summary of data of the transferred portfolio; b. summary of assets and liabilities;
c. rights and obligations of the parties regarding the transfer;
d. claim settlement treatment, in the event of claims for risks occurring before the transfer but reported after the transfer; and e. proof of notification to policyholders.

Number 39
Deleted.

Number 40
Article 72
Deleted.

Number 41
Article 73
Deleted.

Number 42
Article 76
It is clear enough.

Number 43
It is clear enough.

Number 44
Article 76A
It is clear enough.

Number 45
Article 77
It is clear enough.

Number 46
Article 77A
It is clear enough.

Number 47
It is clear enough.

Number 48
Article 79A

Different approvals or policies are intended among others to:
a. support national policy; b. maintain public interest;
c. maintain industry growth; and/or
d. maintain healthy business competition.
Conditions requiring specific consideration, among others, are due to extraordinary events that can cause a large increase in morbidity and mortality and also impact the economy and society, thus requiring attention and handling by all relevant parties and regulated in other provisions regarding considerations in facing possible extraordinary events.

Article II
It is clear enough.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 116/OJK