Regulatory AlertsOJK Circular No. 9/SEOJK.05/2024 on Quality Assessment of Subrogation Claims, Guarantee Activities, and Suretyship
The Financial Services Authority (OJK) issued Circular No. 9/SEOJK.05/2024 to establish legal bases for reporting subrogation claim quality, guarantee activities, and suretyship to the Financial Services Information System. The regulation defines specific quality criteria for these financial instruments, classifying them as 'performing', 'less performing', or 'non-performing' based on payment status and contractual compliance. It mandates that insurance and guarantee companies apply these assessment methods and report historical subrogation claims dating back at least five years prior to the circular's effective date.
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