Amendment to OJK Circular No. 19/SEOJK.05/2020 on Insurance Product Marketing Channels

To:

1. Board of Directors of Insurance Companies; and
2. Board of Directors of Sharia Insurance Companies,
   At their respective locations.

COPY

CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 30 /SEOJK.05/2022

ABOUT

AMENDMENT TO THE CIRCULAR LETTER OF THE FINANCIAL SERVICES AUTHORITY OF THE REPUBLIC OF INDONESIA NUMBER 19/SEOJK.05/2020 ABOUT INSURANCE PRODUCT MARKETING CHANNELS

In relation to the mandate of Article 45 paragraph (3) of Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products (State Gazette of the Republic of Indonesia Year 2015 Number 287, Supplement to the State Gazette of the Republic of Indonesia Number 5770) and to increase public access to insurance products by optimizing synergy between insurance companies and Sharia insurance companies with non-bank financial institutions and increasing the use of information technology in the marketing of insurance products, it is necessary to make several changes in the Circular Letter of the Financial Services Authority Number 19/SEOJK.05/2020 concerning Insurance Product Marketing Channels as follows:

I. Several provisions in the Circular Letter of the Financial Services Authority Number 19/SEOJK.05/2020 concerning Insurance Product Marketing Channels are amended as follows:

1. The provision of item 4 of Roman numeral VI is amended, and between the provision of item 4 and item 5 of Roman numeral VI, 5 (five) items are inserted, namely item 4A, item 4B, item 4C, item 4D, and item 4E, so that it reads as follows:

4. Marketing of Insurance Products through Non-Bank Financial Institutions (BUSB) can only be done in the form of reference, namely BUSB as a representative of the Company:
a. only conveys or provides marketing media (marketing kit) and/or summary information of Insurance Products that have been determined or approved by the Company; b. does not provide explanations of the terms and conditions of Insurance Products;
c. does not assist in the insurance application process, underwriting, and receipt of Premiums or Contributions; and
d. does not assist in the claims process.

4A. In the event that Insurance Products marketed through cooperation with BUSB as referred to in item 4:
a. are intended for risk mitigation of BUSB's business activities; b. are components of BUSB products or services; and/or
c. are related to the sale of BUSB products,
BUSB may assist with the administration of insurance closure applications, underwriting, and claims, and/or receive Premiums or Contributions.

4B. BUSB that conducts marketing of Insurance Products as referred to in item 4A may only receive payment of Premiums or Contributions if such authority is regulated in the cooperation agreement between such BUSB and the Company.

4C. In the event that Premiums or Contributions are paid through BUSB as referred to in item 4A:
a. coverage is declared to have started and become binding as of the date the Premium or Contribution is received by the BUSB that has cooperated with the Company; b. the Company is responsible for all actions of BUSB related to Insurance Products marketed, including for claims arising in the event that BUSB has received Premiums or Contributions but has not yet handed them over to the Company; and
c. violations of the provisions in letter b are subject to administrative sanctions based on Financial Services Authority Regulations concerning Insurance Products and marketing of Insurance Products.

4D. Summary information of Insurance Products must be conveyed to prospective policyholders, insured persons, and/or participants by the Company or BUSB, in accordance with the cooperation agreement agreed upon by both parties.

4E. In the event that summary information of Insurance Products is conveyed by BUSB, the Company remains responsible for ensuring the implementation of the explanation and conveyance of such product information summaries.

2. The provision of item 6 of Roman numeral VI is amended, and between the provision of item 6 and item 7 of Roman numeral VI, 1 (one) item is inserted, namely item 6A, so that it reads as follows:

6. In the event that marketing uses long-distance communication media in the form of electronic systems owned by BUSB, the electronic system must use a link that connects the BUSB electronic system and the Company's electronic system used to provide Insurance Product information services and/or for insurance acceptance.

6A. Links connecting the BUSB electronic system and the Company's electronic system as referred to in item 6 include the use of Application Programming Interface (API). In the event that links use API, the following requirements must be met:
a. the API is owned by the Company; b. the Company has implemented effective information technology risk management in the use of the API;
c. the BUSB electronic system does not store consumer data related to insurance applications after the policy is issued; and
d. before the transfer from the BUSB electronic system to the Company's electronic system, there is consumer consent regarding the transfer of such electronic system.

3. The provisions of item 9 and item 15 of Roman numeral VI are amended, so that they read as follows:

9. In the marketing of Insurance Products, BUSB must meet the following provisions:
a. only market Insurance Products limited to Insurance Products listed in the cooperation agreement; b. have a work unit or function responsible for managing and evaluating Insurance Product marketing activities;
c. inform prospective policyholders, insured persons, or participants that Insurance Products are products of the Company, while BUSB and its employees act as representatives of the Company in marketing Insurance Products; and
d. forward questions and complaints regarding marketed Insurance Products to the Company.

15. An entity is categorized as actively playing a role in marketing Insurance Products as referred to in items 12 and 13 if the entity, employees, and/or persons bound by agreement with the entity conduct marketing of Insurance Products more broadly than the activities referred to in items 4 and 4A, including providing direct explanations and/or consultations regarding Insurance Products to prospective policyholders, insured persons, or participants.

II. Provisions in this Circular Letter of the Financial Services Authority shall take effect as of the date of establishment.

Established in Jakarta
On December 27, 2022

EXECUTIVE HEAD OF INSURANCE SUPERVISOR,
PENSION FUND,
FINANCING INSTITUTION, AND
OTHER FINANCIAL SERVICE INSTITUTIONS
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA,

signed

OGI PRASTOMIYONO