Financial Services Authority Regulation Number 28 of 2022 Regarding Amendments to Financial Services Authority Regulation Number 70/POJK.05/2016 Concerning the Conduct of Business by Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors

FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA
COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 28 OF 2022
CONCERNING
AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 70/POJK.05/2016 CONCERNING THE CONDUCT OF BUSINESS BY INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ASSESSORS BY THE GRACE OF THE MOST HIGH GOD, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that to support the development of the insurance brokerage industry through the use of information technology in the business processes of insurance brokerage companies, it is necessary to adjust regulations concerning the conduct of insurance brokerage services using information technology so that such services are conducted by applying sound business practices and consumer protection principles; b. that to encourage the improvement of the quality of the conduct of business by insurance brokerage companies, reinsurance brokerage companies, and insurance loss assessors, as well as to increase the effectiveness of supervision over the conduct of business by such companies, it is necessary to adjust the Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business by Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors;
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 Amendments to Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business by Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors;

Recalling:

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);
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);
3. Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business by Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors (State Gazette of the Republic of Indonesia Year 2016 Number 303, Supplement to the State Gazette of the Republic of Indonesia Number 5993);

DECIDING:
Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 70/POJK.05/2016 CONCERNING THE CONDUCT OF BUSINESS BY INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ASSESSORS.

Article I
Several provisions in the Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Conduct of Business by Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors (State Gazette of the Republic of Indonesia Year 2016 Number 303, Supplement to the State Gazette of the Republic of Indonesia Number 5993) are amended as follows:

1. The provision of item 19 in Article 1 is amended, and 3 (three) items are added, namely items 22, 23, and 24, so that Article 1 reads as follows:

Article 1
In this Financial Services Authority Regulation:

1. Insurance Brokerage Business is a business of consulting and/or intermediary services in closing insurance or sharia insurance and handling claim settlements, acting on behalf of and for the policyholder, insured, or participant as referred to in Law Number 40 of 2014 concerning Insurance.

2. Reinsurance Brokerage Business is a business of consulting and/or intermediary services in placing reinsurance or sharia reinsurance and handling claim settlements, acting on behalf of and for insurance companies, sharia insurance companies, guarantee companies, sharia guarantee companies, reinsurance companies, or sharia reinsurance companies that place reinsurance or sharia reinsurance as referred to in Law Number 40 of 2014 concerning Insurance.

3. Insurance Loss Assessment Business is a business of claim assessment and/or consulting services over insurance objects as referred to in Law Number 40 of 2014 concerning Insurance.

4. Insurance Brokerage Company is a company that conducts Insurance Brokerage Business.

5. Reinsurance Brokerage Company is a company that conducts Reinsurance Brokerage Business.

6. Insurance Loss Assessor Company is a company that conducts Insurance Loss Assessment Business.

7. Insurance Company is a general insurance company and life insurance company as referred to in Law Number 40 of 2014 concerning Insurance.

8. Sharia Insurance Company is a sharia general insurance company and sharia life insurance company as referred to in Law Number 40 of 2014 concerning Insurance.

9. Reinsurance Company is a company that conducts reinsurance business against risks faced by Insurance Companies, guarantee companies, or other reinsurance companies.

10. Sharia Reinsurance Company is a company that conducts risk management business based on sharia principles against risks faced by Sharia Insurance Companies, sharia guarantee companies, or other sharia reinsurance companies.

11. Insurance Broker is a person who works at an Insurance Brokerage Company and meets the requirements to give recommendations or represent policyholders, insured, or participants in closing insurance or sharia insurance and/or claim settlements as referred to in Law Number 40 of 2014 concerning Insurance.

12. Reinsurance Broker is a person who works at a Reinsurance Brokerage Company and meets the requirements to give recommendations or represent Insurance Companies, Sharia Insurance Companies, guarantee companies, sharia guarantee companies, Reinsurance Companies, or Sharia Reinsurance Companies in closing reinsurance or sharia reinsurance and/or claim settlements as referred to in Law Number 40 of 2014 concerning Insurance.

13. Expert Personnel is an individual who has specific qualifications and/or expertise and is appointed as expert personnel at the Insurance Brokerage Company, Reinsurance Brokerage Company, or Insurance Loss Assessor Company where they work.

14. Reinsurer is a Reinsurance Company, Sharia Reinsurance Company, general insurance company, or sharia general insurance company that accepts reinsurance including retrocession.

15. Ceding Company is:
    a. a general insurance company that transfers part of its risk to a Reinsurance Company or another general insurance company; b. a sharia general insurance company that transfers part of its risk to a Sharia Reinsurance Company, a sharia unit in a Reinsurance Company, another sharia general insurance company, or a sharia unit in a general insurance company;
    c. a sharia unit in a general insurance company that transfers part of its risk to a Sharia Reinsurance Company, a sharia unit in a Reinsurance Company, a sharia general insurance company, or a sharia unit in another general insurance company;
    d. a life insurance company that transfers part of its risk to a Reinsurance Company; e. a sharia life insurance company that transfers part of its risk to a Sharia Reinsurance Company or a sharia unit in a Reinsurance Company; f. a sharia unit in a life insurance company that transfers part of its risk to a Sharia Reinsurance Company or a sharia unit in a Reinsurance Company; g. a guarantee company that transfers part of its risk to a Reinsurance Company; or h. a sharia guarantee company or a sharia unit in a guarantee company that transfers part of its risk to a Sharia Reinsurance Company or a sharia unit in a Reinsurance Company.

16. Client is the party that assigns the task of loss assessment and/or consulting services over insurance objects to an Insurance Loss Assessor Company.

17. Insurance Object is human life and body, human health, legal liability, goods and services, and all other interests that can be lost, damaged, suffer loss, and/or decrease in value as referred to in Law Number 40 of 2014 concerning Insurance.

18. Insurance Policy is an insurance agreement deed or other documents equated with the insurance agreement deed, and other documents that are an inseparable part of the insurance agreement, which are made in writing and contain an agreement between an Insurance Company or Sharia Insurance Company, and the policyholder, insured, or participant.

19. Premium Account is the account of an Insurance Brokerage Company or Reinsurance Brokerage Company at a conventional commercial bank or sharia commercial bank used to hold:
    a. premiums or contributions received from policyholders, insured, participants, or Ceding Companies; or b. claims or benefits received from Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, or Sharia Reinsurance Companies.

20. Operational Account is the account of an Insurance Brokerage Company or Reinsurance Brokerage Company at a conventional commercial bank or sharia commercial bank specifically used for operational activities.

21. Financial Services Authority, hereinafter abbreviated as OJK, is an independent institution that has the functions, duties, and authorities of regulation, supervision, examination, and investigation as referred to in Law Number 21 of 2011 concerning the Financial Services Authority.

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

23. Digital Insurance Brokerage Service is the conduct of Insurance Brokerage Business where intermediary services in closing insurance or sharia insurance are conducted through an Electronic System and internet network that can be used directly by policyholders, insured, and/or participants.

24. Information Technology is a technique to collect, prepare, store, process, announce, analyze, and/or distribute information in the field of financial services.

25. Between Article 2 and Article 3, 1 (one) article is inserted, namely Article 2A, so that it reads as follows:

Article 2A
Insurance Brokerage Companies may conduct Insurance Brokerage Business as referred to in Article 2 paragraph (1) in the form of Digital Insurance Brokerage Services.

3. The provision of letter b in paragraph (1) of Article 15 is amended and 1 (one) paragraph is added, namely paragraph (3), so that Article 15 reads as follows:

Article 15
(1) Expert Personnel at Insurance Brokerage Companies as referred to in Article 14 paragraph (1) must fulfill at least the following duties:
a. creating and implementing good Insurance Broker work processes, including claim settlement processes; b. analyzing and improving Insurance Broker work processes to remain in line with the development of the insurance industry and statutory regulations;
c. providing current information regarding the development of the insurance industry and regulations in the insurance field to Insurance Brokers;
d. providing guidance to Insurance Brokers in providing input or advice regarding insurance needs for prospective policyholders, insured, or participants; e. paying attention to and providing guidance for Insurance Brokers in negotiating or formulating insurance programs; f. reviewing the credibility of Insurance Companies or Sharia Insurance Companies from various aspects including financial aspects and ability/capacity to accept certain risks; and g. providing guidance to Insurance Brokers in claim process negotiations.

(2) In carrying out duties as referred to in paragraph (1), Expert Personnel at Insurance Brokerage Companies must refer to the code of ethics and code of conduct prepared by professional associations in Indonesia.

(3) Insurance Brokerage Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out duties as referred to in paragraph (1).

4. The provision of Article 16 is amended so that it reads as follows:

Article 16
(1) Expert Personnel at Insurance Brokerage Companies as referred to in Article 14 paragraph (1) must be responsible for:
a. guiding Insurance Brokers to act in accordance with applicable regulations; b. ensuring the accuracy and sufficiency of data to formulate the risk profile of the insured or participant;
c. maintaining the confidentiality of data of prospective policyholders, insured, or participants in accordance with applicable statutory regulations;
d. submitting accurate data and information to Insurance Companies or Sharia Insurance Companies to conduct risk selection; and e. knowing more information regarding Insurance Companies or Sharia Insurance Companies and their credibility in accordance with applicable regulations.

(2) Insurance Brokerage Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out responsibilities as referred to in paragraph (1).

5. The provision of letter b in paragraph (1) of Article 18 is amended and 1 (one) paragraph is added, namely paragraph (3), so that Article 18 reads as follows:

Article 18
(1) Expert Personnel at Reinsurance Brokerage Companies as referred to in Article 14 paragraph (1) must fulfill at least the following duties:
a. creating and implementing good Reinsurance Broker work processes, including claim settlement processes; b. analyzing and improving Reinsurance Broker work processes to remain in line with the development of the insurance industry and statutory regulations;
c. providing current information regarding the development of the insurance industry and regulations in the insurance field to Reinsurance Brokers;
d. providing guidance to Reinsurance Brokers in providing input or advice regarding reinsurance needs for prospective Ceding Companies; e. paying attention to and providing guidance for Reinsurance Brokers in negotiating or formulating reinsurance programs; f. reviewing the credibility of Reinsurers from various aspects including financial aspects and ability/capacity to accept certain risks; and g. providing guidance to Reinsurance Brokers in claim process negotiations.

(2) In carrying out duties as referred to in paragraph (1), Expert Personnel at Reinsurance Brokerage Companies must refer to the code of ethics and code of conduct prepared by professional associations in Indonesia.

(3) Reinsurance Brokerage Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out duties as referred to in paragraph (1).

6. The provision of Article 19 is amended so that it reads as follows:

Article 19
(1) Expert Personnel at Reinsurance Brokerage Companies as referred to in Article 14 paragraph (1) must be responsible for:
a. guiding Reinsurance Brokers to act in accordance with applicable regulations; b. ensuring the accuracy and sufficiency of data to formulate the risk profile of Ceding Companies;
c. maintaining the confidentiality of data of prospective Ceding Companies in accordance with applicable statutory regulations;
d. submitting accurate data and information to Reinsurers to conduct risk selection; and e. knowing more information regarding Reinsurers and their credibility in accordance with applicable regulations.

(2) Reinsurance Brokerage Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out responsibilities as referred to in paragraph (1).

7. Between Article 20 and Article 21, 1 (one) article is inserted, namely Article 20A, so that it reads as follows:

Article 20A
Insurance Brokerage Companies and Reinsurance Brokerage Companies are prohibited from employing Expert Personnel who have been subject to administrative sanctions in the form of cancellation of registration as an Insurance Broker and/or Reinsurance Broker in the last 3 (three) years.

8. The provision of Article 21 is added with 1 (one) paragraph, namely paragraph (3), so that Article 21 reads as follows:

Article 21
(1) Expert Personnel at Insurance Loss Assessor Companies as referred to in Article 14 paragraph (1) must fulfill at least the following duties:
a. coordinating the collection of data and information to assess insurance compensation; b. evaluating the draft report on insurance loss assessment; and
c. verifying the insurance loss assessment report.

(2) In carrying out duties as referred to in paragraph (1), Expert Personnel at Insurance Loss Assessor Companies must refer to the code of ethics and code of conduct prepared by professional associations in Indonesia.

(3) Insurance Loss Assessor Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out duties as referred to in paragraph (1).

9. The provision of Article 22 is amended so that it reads as follows:

Article 22
(1) Expert Personnel at Insurance Loss Assessor Companies as referred to in Article 14 paragraph (1) must be responsible for:
a. ensuring the clarity, completeness, and accuracy of insurance loss assessment reports based on data and information already obtained; and b. ensuring that insurance loss assessment reports are prepared based on applicable professional guidelines.

(2) Insurance Loss Assessor Companies employing Expert Personnel as referred to in Article 14 paragraph (1) must ensure that Expert Personnel carry out responsibilities as referred to in paragraph (1).

10. The provision of paragraph (1) of Article 40 is deleted so that Article 40 reads as follows:

Article 40
(1) deleted.
(2) Reinsurance Brokerage Companies may offer consulting and/or intermediary services in placing reinsurance or sharia reinsurance and/or handling claim settlements digitally or electronically.

11. Between Chapter III and Chapter IV, 1 (one) chapter is inserted, namely Chapter IIIA, so that it reads as follows:

CHAPTER IIIA
CONDUCT OF DIGITAL INSURANCE BROKERAGE SERVICES

First Section
Scope of Digital Insurance Brokerage Services

12. Between Article 51 and Article 52, 8 (eight) articles are inserted, namely Article 51A, Article 51B, Article 51C, Article 51D, Article 51E, Article 51F, Article 51G, and Article 51H, so that they read as follows:

Article 51A
(1) Insurance Brokerage Companies conducting Digital Insurance Brokerage Services must deliver Insurance Policies to policyholders, insured, or participants digitally.

(2) In the event of a request from the policyholder, insured, or participant, in addition to fulfilling the obligation to deliver the Insurance Policy digitally as referred to in paragraph (1), Insurance Brokerage Companies may deliver the Insurance Policy to the policyholder, insured, or participant in printed form.

(3) In the event that an Insurance Brokerage Company conducts Digital Insurance Brokerage Services as referred to in paragraph (1), the Insurance Brokerage Company must provide consulting services in closing insurance or sharia insurance and/or claim handling services digitally.

(4) Insurance Brokerage Companies are prohibited from providing Digital Insurance Brokerage Services as referred to in paragraph (1) other than for insurance or sharia insurance products that meet the criteria:
a. have obtained product approval or registration from the OJK; b. use individual policies;
c. have a simple risk selection (underwriting) process; and
d. are included in the following types of insurance or sharia insurance products:

1. single-term life insurance;
2. personal accident insurance;
3. health insurance;
4. motor vehicle insurance;
5. cargo insurance for expeditions;
6. travel insurance;
7. credit insurance; and
8. miscellaneous insurance.

(5) In the event that an Insurance Brokerage Company will conduct Digital Insurance Brokerage Services for insurance or sharia insurance products that are not included in the types of insurance or sharia insurance products as referred to in paragraph (4) letter d, the Insurance Brokerage Company must obtain prior approval from the OJK before providing Digital Insurance Brokerage Services for such insurance or sharia insurance products.

(6) To obtain approval as referred to in paragraph (5), the Insurance Brokerage Company must submit an application completed with:
a. specifications of the insurance or sharia insurance product; b. proof of product approval or registration;
c. proof of readiness to conduct Digital Insurance Brokerage Services for the insurance or sharia insurance product to be offered; and
d. risk analysis and risk mitigation for the Digital Insurance Brokerage Services related to the product, for the insurance or sharia insurance product to be offered.

(7) Digital Insurance Brokerage Services for intermediary services conducted partially digitally are not categorized as Digital Insurance Brokerage Services.

Second Section
Approval for Conduct of Digital Insurance Brokerage Services

Article 51B
Insurance Brokerage Companies are prohibited from conducting Digital Insurance Brokerage Services before obtaining OJK approval to conduct Digital Insurance Brokerage Services.

Article 51C
(1) Applications for approval for the conduct of Digital Insurance Brokerage Services as referred to in Article 51B are submitted by:
a. Insurance Brokerage Companies that already have a business license from the OJK before conducting Digital Insurance Brokerage Services; or b. parties that do not yet have a business license for Insurance Brokerage Companies simultaneously with the application for the business license for Insurance Brokerage Companies as regulated in the OJK Regulation concerning business and institutional licensing for Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessor Companies.

(2) Applications for approval as referred to in paragraph (1) are submitted to the OJK using the application format for approval for the conduct of Digital Insurance Brokerage Services contained in the Appendix which is an inseparable part of this OJK Regulation, accompanied by documents at least:
a. organizational structure containing functions or work units responsible for the conduct of Digital Insurance Brokerage Services; b. proof that the company has met equity requirements in the form of:

1. company financial reports for the last 2 (two) quarters for Insurance Brokerage Companies as referred to in paragraph (1) letter a; or
2. audited company financial reports by public accountants for parties as referred to in paragraph (1) letter b;
   c. proof of having human resources with at least 3 (three) years of experience and expertise in the field of Information Technology;
   d. policies and procedures for Digital Insurance Brokerage Services to be conducted; e. proof of ownership, control, and management of the Electronic System; f. proof of ownership and/or cooperation agreements or data center and disaster recovery center leases; and g. proof of readiness to apply risk management, including results of risk analysis and risk control;

h. a list of cooperation agreements conducted in Digital Insurance Brokerage Services; and
i. a business plan for a period of up to 3 (three) years ahead, containing at least:

1. business strategy, including targets and steps for target realization;
2. development of Information Technology infrastructure; and
3. development of human resources and organization.

Article 51D
(1) Insurance Brokerage Companies that have obtained approval for the implementation of Digital Insurance Brokerage Services must submit an application for registration as an Electronic System operator to the competent authority within a maximum of 30 (thirty) calendar days from the date of issuance of the approval by the OJK. (2) The application for registration as an Electronic System operator as referred to in paragraph (1) is copied to the OJK simultaneously with the submission to the competent authority. (3) Insurance Brokerage Companies are prohibited from implementing Digital Insurance Brokerage Services before being registered as an Electronic System operator with the competent authority. (4) Insurance Brokerage Companies must submit a copy of the registration certificate as an Electronic System operator from the competent authority to the OJK within a maximum of 7 (seven) calendar days from the date of the registration certificate as an Electronic System operator. (5) Insurance Brokerage Companies must implement Digital Insurance Brokerage Services within a maximum of 30 (thirty) calendar days from being registered as an Electronic System operator with the competent authority. (6) In the event that an Insurance Brokerage Company:
a. does not meet the provisions in paragraph (5); or b. does not obtain a registration certificate as an Electronic System operator within a period of 60 (sixty) calendar days from the date of issuance of the approval by the OJK, the OJK cancels the Digital Insurance Brokerage Service approval that has been issued for the Insurance Brokerage Company.

Third Section
Electronic System
Implementation of Digital Insurance Brokerage Services

Article 51E
(1) In the implementation of Digital Insurance Brokerage Services, Insurance Brokerage Companies must use an Electronic System that is owned, controlled, and managed by the Insurance Brokerage Company. (2) The Electronic System used in Digital Insurance Brokerage Services must be registered in accordance with applicable legislation. (3) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must develop the Electronic System in accordance with the company's business plan to ensure the reliability of the Electronic System. (4) The Electronic System used in Digital Insurance Brokerage Services must contain at least:
a. the name of the Insurance Brokerage Company; b. requirements and terms of use for Digital Insurance Brokerage Services;
c. a summary of information and services from insurance or Sharia insurance products conducted through Digital Insurance Brokerage Services, which have been approved by the Insurance Company or Sharia Insurance Company;
d. information regarding the Insurance Company or Sharia Insurance Company providing the insurance or Sharia insurance products offered in Digital Insurance Brokerage Services; e. customer service media information; and f. information that the Insurance Brokerage Company is supervised by the OJK. (5) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must provide communication media for policyholders, insured parties, or participants to ensure the continuity of Digital Insurance Brokerage Services.

Fourth Section
Risk Management
Implementation of Digital Insurance Brokerage Services

Article 51F
(1) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must meet the information technology risk management provisions for non-banking financial service institutions whose majority of business activities use Information Technology as regulated in the Financial Services Authority Regulation regarding the application of information technology risk management for non-banking financial service institutions. (2) In the implementation of risk management for the implementation of Digital Insurance Brokerage Services, Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must form a unit or function tasked with handling the implementation of Digital Insurance Brokerage Services. (3) The unit or function handling the implementation of Digital Insurance Brokerage Services as referred to in paragraph (2) has tasks including:
a. assisting the board of directors and board of commissioners in the planning, implementation, and monitoring of Information Technology implementation in Digital Insurance Brokerage Services; b. supporting the development and/or procurement of Information Technology in Digital Insurance Brokerage Services;
c. being responsible for the implementation of cooperation with third parties in the implementation of Digital Insurance Brokerage Services;
d. being responsible for the transaction data of Digital Insurance Brokerage Services; e. being responsible for obstacles and problems arising from the implementation of Digital Insurance Brokerage Services; and f. carrying out other tasks related to the implementation of Digital Insurance Brokerage Services.

Article 51G
(1) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must have human resources with at least 3 (three) years of experience and expertise in the field of Information Technology. (2) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must ensure that the human resources as referred to in paragraph (1) are:
a. officials at least 1 (one) level below the directorate who oversee the Information Technology function; or b. persons in charge in the unit or function tasked with handling the implementation of Digital Insurance Brokerage Services as referred to in Article 51F paragraph (2). (3) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services must conduct competency enhancement programs in the field of Information Technology for the human resources as referred to in paragraph (1) at least 1 (one) time in 1 (one) year.

Article 51H
Insurance Brokerage Companies intending to provide Digital Insurance Brokerage Services must first:
a. obtain approval/statement from the Insurance Company or Sharia Insurance Company that the Insurance Company or Sharia Insurance Company is responsible for the insurance or Sharia insurance products intermediated by the Insurance Brokerage Company digitally, provided that the policyholder has:

1. provided data and insurance information as requested in the Electronic System; and

2. paid premiums to the Insurance Company, Sharia Insurance Company, Insurance Brokerage Company, or parties cooperating with the Insurance Company, Sharia Insurance Company, or Insurance Brokerage Company; and
   b. ensure that the Insurance Company or Sharia Insurance Company has completed the company statement letter that the insurance or Sharia insurance product can be marketed digitally when obtaining product approval from the OJK.

3. The provisions of paragraph (4) of Article 52 are amended so that Article 52 reads as follows:
   Article 52
   (1) Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors may cooperate with other parties in the context of business acquisition or carrying out part of their functions in implementing their business. (2) Cooperation as referred to in paragraph (1) must meet the provisions:
   a. do not hinder the operational and non-operational activities of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors; and b. be stipulated in a written agreement. (3) The written agreement as referred to in paragraph (2) letter b must contain at least:
   a. the duration of the agreement; b. the duties and responsibilities of each party in the implementation of tasks; and
   c. the obligation of technology and knowledge transfer in the event that the cooperation agreement is conducted with foreign parties.
   (4) Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors conducting cooperation as referred to in paragraph (1) must ensure that the other party meets the provisions:
   a. for individuals:

4. do not have conflicts of interest with policyholders, insured parties, participants, Ceding Companies, and/or insurers; and

5. have the capability and experience supporting the implementation of tasks; or
   b. for legal entities:

6. have a business license from the competent authority if required to obtain a business license based on applicable legislation;

7. do not have conflicts of interest with policyholders, insured parties, participants, Ceding Companies, and/or insurers; and

8. have the capability and experience supporting the implementation of tasks.

9. Between Article 54 and Article 55, 1 (one) article is inserted, namely Article 54A, so that it reads as follows:
   Article 54A
   (1) Insurance Brokerage Companies implementing Digital Insurance Brokerage Services may cooperate with other parties for the implementation of part of the functions as referred to in Article 52 paragraph (1), in the form of:
   a. cooperation with payment service providers, for the payment of premiums or contributions to Insurance Brokerage Companies and/or Insurance Companies or Sharia Insurance Companies; b. cooperation with Information Technology providers; and/or
   c. cooperation with other parties in improving the operational quality and services of Insurance Brokerage Companies.
   (2) In the implementation of cooperation as referred to in paragraph (1) letter b, Insurance Brokerage Companies are prohibited from:
   a. outsourcing the management of Digital Insurance Brokerage Services to other parties; b. transferring the management of data of prospective policyholders, insured parties, or participants; and
   c. transferring the management of Information Technology infrastructure to other parties.

10. Between Chapter IV and Chapter V, 1 (one) chapter is inserted, namely Chapter IVA, so that it reads as follows:
    CHAPTER IVA
    INSURANCE BROKERAGE BUSINESS AND REINSURANCE BROKERAGE BUSINESS CONDUCTED SIMULTANEOUSLY

11. Between Article 55 and Article 56, 2 (two) articles are inserted, namely Article 55A and Article 55B, so that they read as follows:
    Article 55A
    (1) Insurance Brokerage Companies may conduct Insurance Brokerage Business simultaneously (co-broking) with other Insurance Brokerage Companies.
    (2) Reinsurance Brokerage Companies may conduct Reinsurance Brokerage Business simultaneously (co-broking) with other Reinsurance Brokerage Companies.
    (3) Insurance Brokerage Companies may conduct Insurance Brokerage Business simultaneously (co-broking) with other Insurance Brokerage Companies as referred to in paragraph (1) regarding the underwriting of insurance or Sharia insurance in the name of policyholders, insured parties, or participants for one Insurance Object by way of:
    a. agreed upon from the beginning to be conducted simultaneously; and b. agreed upon after a new object/case arises on a case-by-case basis to be conducted simultaneously.
    (4) Reinsurance Brokerage Companies may conduct Reinsurance Brokerage Business simultaneously (co-broking) with other Reinsurance Brokerage Companies as referred to in paragraph (2) regarding the underwriting of reinsurance or Sharia reinsurance in the name of Ceding Companies for one Insurance Object by way of:
    a. agreed upon from the beginning to be conducted simultaneously; and b. agreed upon after a new object/case arises on a case-by-case basis to be conducted simultaneously.

Article 55B
(1) Insurance Brokerage Business conducted simultaneously (co-broking) as referred to in Article 55A paragraph (1) and Reinsurance Brokerage Business conducted simultaneously (co-broking) as referred to in Article 55A paragraph (2) must be stipulated in a written agreement and/or other documents. (2) The written agreement and/or other documents as referred to in paragraph (1) must contain at least:
a. the composition of members consisting of a chairman and members; b. procedures and the duration for the receipt and forwarding of premiums and/or contributions between the chairman and members;
c. claim service procedures;
d. the rights and obligations of the parties; e. the duration of the agreement; and f. the dispute resolution mechanism.

17. The provisions of paragraph (1) of Article 56 are amended and Article 56 paragraph (2) is deleted so that Article 56 reads as follows:
    Article 56
    (1) Insurance Brokerage Companies must at all times have equity of at least:
    a. IDR 2,000,000,000.00 (two billion rupiah) for Insurance Brokerage Companies that do not implement Digital Insurance Brokerage Services; or b. IDR 5,000,000,000.00 (five billion rupiah) for Insurance Brokerage Companies that implement Digital Insurance Brokerage Services. (2) Deleted.

18. The provisions of Article 59 are amended so that they read as follows:
    Article 59
    (1) Insurance Brokerage Companies and Reinsurance Brokerage Companies must prepare and submit:
    a. quarterly reports; b. annual reports; and
    c. annual financial reports audited by public accountants,
    to the OJK.
    (2) Insurance Loss Assessors must prepare and submit to the OJK:
    a. annual reports; and b. annual financial reports audited by public accountants.
    (3) Quarterly reports as referred to in paragraph (1) letter a, which are reports ending on March 31, June 30, September 30, and December 31, must be submitted no later than 1 (one) month from the end of the respective quarter. (4) Annual reports as referred to in paragraph (1) letter b and paragraph (2) letter a, and annual financial reports audited by public accountants as referred to in paragraph (1) letter c and paragraph (2) letter b, which are reports ending on December 31, must be submitted no later than April 30 of the following year.

19. The provisions of paragraph (1), paragraph (3), paragraph (4), paragraph (5), and paragraph (6) of Article 60 are amended and the provisions of Article 60 paragraph (2) are deleted so that Article 60 reads as follows:
    Article 60
    (1) Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors must submit reports as referred to in Article 59 paragraph (1) and paragraph (2) in the form of electronic documents. (2) Deleted. (3) If the deadline for submitting reports as referred to in Article 59 paragraph (3) and paragraph (4) falls on a holiday, the deadline for submitting reports is on the next working day. (4) In the event that Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors obtain business licenses for less than 6 (six) months until the end of the calendar year, the obligation to submit reports as referred to in paragraph (1) shall apply in the following calendar year. (5) The OJK may at any time request reports or information other than reports as referred to in paragraph (1). (6) Provisions regarding the form, structure, and procedures for submitting reports as referred to in paragraph (1) are established by the OJK.

20. The provisions of Article 61 are amended so that they read as follows:
    Article 61
    (1) Annual financial reports audited by public accountants as referred to in Article 59 paragraph (1) letter c and paragraph (2) letter b must be prepared based on accounting standards applicable in Indonesia. (2) The use of public accountants and public accounting firms follows the provisions regulated in the Financial Services Authority Regulation regarding the use of public accountants and public accounting firms in financial service activities.

21. The provisions of paragraph (1) of Article 63 are amended and 1 (one) paragraph is added, namely paragraph (4), so that Article 63 reads as follows:
    Article 63
    (1) Violations of the provisions in Article 2, Article 5 paragraph (1), paragraph (2), Article 6 paragraph (1), paragraph (2), Article 7 paragraph (1), Article 8, Article 9, Article 10, Article 12, Article 13, Article 14 paragraph (1), Article 15 paragraph (3), Article 16 paragraph (2), Article 18 paragraph (3), Article 19 paragraph (2), Article 20A, Article 21 paragraph (3), Article 22 paragraph (2), Article 24 paragraph (1), paragraph (2), Article 25 paragraph (1), paragraph (4), Article 26, Article 28 paragraph (3), paragraph (4), Article 29, Article 30, Article 32, Article 33, Article 34, Article 35 paragraph (1), paragraph (2), Article 36 paragraph (1), paragraph (2), Article 37 paragraph (1), paragraph (2), Article 38 paragraph (1), paragraph (5), Article 39, Article 41, Article 42, Article 43, Article 44, Article 45, Article 46 paragraph (1), Article 47 paragraph (1), Article 48, Article 49 paragraph (1), Article 50, Article 51A paragraph (1), paragraph (4), paragraph (5), Article 51B, Article 51D paragraph (1), paragraph (3), paragraph (4), paragraph (5), Article 51E, Article 51F paragraph (1), paragraph (2), Article 51G, Article 51H, Article 52 paragraph (2), paragraph (4), Article 53, Article 54 paragraph (3), Article 54A paragraph (2), Article 55 paragraph (1), paragraph (2), Article 55B paragraph (2), Article 56 paragraph (1), Article 57, Article 58, Article 59, Article 60 paragraph (1), Article 61 paragraph (1), and/or Article 62 are subject to administrative sanctions in the form of:
    a. written warnings; b. restrictions on business activities, for part or all of the business activities; and
    c. revocation of business licenses.
    (2) Administrative sanctions as referred to in paragraph (1) are carried out progressively.
    (3) In addition to administrative sanctions as referred to in paragraph (1), the OJK may impose additional sanctions in the form of prohibitions on becoming shareholders, controllers, directors, board of commissioners, or equivalents thereof, or holding executive positions below the directorate, or equivalents thereof, in Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, Sharia Reinsurance Companies, Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors. (4) Insurance Brokerage Companies, Reinsurance Brokerage Companies, or Insurance Loss Assessors that are subject to administrative sanctions in the form of suspension of business activities but continue to conduct insurance brokerage, reinsurance brokerage, or insurance loss assessment activities, either for part or all of their business activities, are subject to administrative sanctions in the form of revocation of business licenses.

22. The provisions of Article 65 are amended so that they read as follows:
    Article 65
    In the event that Insurance Brokerage Companies and Reinsurance Brokerage Companies commit violations of the provisions in Article 42 of this Financial Services Authority Regulation as many as 3 (three) times within the last 3 (three) years, the OJK imposes administrative sanctions in the form of revocation of business licenses.

23. The provisions of Article 66 are amended so that they read as follows:
    Article 66
    (1) Violations of the provisions in Article 15 paragraph (1), paragraph (2), Article 16 paragraph (1), Article 18 paragraph (1), paragraph (2), Article 19 paragraph (1), Article 21 paragraph (1), paragraph (2), Article 22 paragraph (1), and/or Article 24 paragraph (4), paragraph (5) are subject to administrative sanctions in the form of written warnings. (2) Administrative sanctions in the form of written warnings as referred to in paragraph (1) may be imposed for a maximum of 3 (three) times consecutively with a validity period of at most 3 (three) months each. (3) In the event that by the end of the validity period of the written warnings as referred to in paragraph (2), the Expert Personnel still do not meet the provisions as referred to in paragraph (1), the OJK orders the Insurance Brokerage Company or Reinsurance Brokerage Company to dismiss the Expert Personnel. (4) In the event that by the end of the validity period of the written warnings as referred to in paragraph (2), Insurance Brokers and Reinsurance Brokers still do not meet the provisions as referred to in paragraph (1), the OJK cancels the registration statements for Insurance Brokers and Reinsurance Brokers.

24. The provisions of Article 67 are amended so that they read as follows:
    Article 67
    (1) If reports are submitted after the deadline for report submission up to 30 (thirty) days from the report submission deadline as referred to in Article 59 paragraph (3) and paragraph (4), Insurance Brokerage Companies, Reinsurance Brokerage Companies, or Insurance Loss Assessors are declared late in submitting reports. (2) Insurance Brokerage Companies, Reinsurance Brokerage Companies, or Insurance Loss Assessors that are late in submitting reports as referred to in paragraph (1) are subject to additional administrative sanctions in the form of fines of IDR 200,000.00 (two hundred thousand rupiah) per day per report. (3) If reports have not been submitted after the deadline for late submission of reports as referred to in paragraph (1), Insurance Brokerage Companies, Reinsurance Brokerage Companies, or Insurance Loss Assessors are declared not to have submitted reports. (4) Insurance Brokerage Companies, Reinsurance Brokerage Companies, or Insurance Loss Assessors that do not submit reports as referred to in paragraph (3) are subject to additional administrative sanctions in the form of fines of IDR 20,000,000.00 (twenty million rupiah) per report.

Article II

1. Insurance Brokerage Companies that have implemented Digital Insurance Brokerage Services before this Financial Services Authority Regulation is promulgated must obtain OJK approval to implement Digital Insurance Brokerage Services as referred to in Article 51B no later than 6 (six) months from the date this Financial Services Authority Regulation is promulgated.
2. For Insurance Brokerage Companies that have implemented Digital Insurance Brokerage Services before this Financial Services Authority Regulation is promulgated as referred to in item 1 and have equity below the provisions as referred to in Article 56 paragraph (1) letter b, they must have equity with the following stages:
   a. at least IDR 2,000,000,000.00 (two billion rupiah) applicable at the time this Financial Services Authority Regulation is promulgated; b. at least IDR 3,000,000,000.00 (three billion rupiah) no later than December 31, 2023;
   c. at least IDR 4,000,000,000.00 (four billion rupiah) no later than December 31, 2024; and
   d. at least IDR 5,000,000,000.00 (five billion rupiah) no later than December 31, 2025.
3. In the event that Insurance Brokerage Companies cannot meet the provisions as referred to in item 1, Insurance Brokerage Companies must cease Digital Insurance Brokerage Services activities.
4. At the time this Financial Services Authority Regulation takes effect, Financial Services Authority Regulation Number 55/POJK.05/2017 regarding Periodic Reports of Insurance Companies (State Gazette of the Republic of Indonesia Year 2017 Number 174, Addition to the State Gazette of the Republic of Indonesia Number 6107) is declared to remain in effect as long as it does not conflict with the provisions in this Financial Services Authority Regulation.
5. This Financial Services Authority Regulation takes effect on the date of promulgation.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja

To ensure everyone knows, order the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Determined in Jakarta on December 26, 2022
CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
MAHENDRA SIREGAR

Promulgated in Jakarta on December 28, 2022
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2022 NUMBER 36/OJK

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 28 OF 2022
CONCERNING
AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 70/POJK.05/2016 CONCERNING THE BUSINESS OPERATIONS OF INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ASSESSORS

I. GENERAL

Law Number 21 of 2011 concerning the Financial Services Authority mandates the implementation of supervision and regulation functions over all activities within the financial services sector by the OJK. Based on this Law, the OJK was established with the objective that all financial services activities are conducted in an orderly, fair, transparent, and accountable manner, capable of realizing a financial system that grows sustainably and stably, and capable of protecting the interests of insurance consumers and the public.

In line with the OJK's objectives and in accordance with the mandate in Law Number 40 of 2014 concerning Insurance, the OJK has established Regulation Number 70/POJK.05/2016 concerning the Business Operations of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors. The establishment of this OJK Regulation is intended, among other things, to ensure that Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors can provide optimal contributions to the growth of the insurance industry and the national economy, as well as the protection of insurance consumer interests.

The practice of conducting business by Insurance Brokerage Companies continues to develop in accordance with changes in the business environment and societal needs. This is reflected, among other things, in the acceleration of the use of digital technology in services provided by Insurance Brokerage Companies, as well as the increasing need for cooperation between Insurance Brokerage Companies and other parties to improve the quality of insurance brokerage services. On one hand, such practices have a positive impact on the insurance industry and consumers. On the other hand, they also pose risks, requiring regulation and supervision while still providing space for innovation. Furthermore, to enhance the effectiveness of OJK supervision, adjustments to certain provisions are necessary, including the frequency of periodic report submissions and the imposition of sanctions on Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors.

In view of the above, it is necessary to refine Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Business Operations of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors.

II. ARTICLE-BY-ARTICLE EXPLANATION

Article I
Number 1
Article 1
Sufficiently clear.

Number 2
Article 2A
Sufficiently clear.

Number 3
Article 15
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
To ensure the implementation of Expert Personnel duties, Insurance Brokerage Companies must, among other things, determine the scope of Expert Personnel duties, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel duties, and conduct monitoring and evaluation of the implementation of Expert Personnel duties.

Number 4
Article 16
Paragraph (1)
Sufficiently clear.

Paragraph (2)
To ensure the implementation of Expert Personnel responsibilities, Insurance Brokerage Companies must, among other things, determine the scope of Expert Personnel responsibilities, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel responsibilities, and conduct monitoring and evaluation of the implementation of Expert Personnel responsibilities.

Number 5
Article 18
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
To ensure the implementation of Expert Personnel duties, Reinsurance Brokerage Companies must, among other things, determine the scope of Expert Personnel duties, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel duties, and conduct monitoring and evaluation of the implementation of Expert Personnel duties.

Number 6
Article 19
Paragraph (1)
Sufficiently clear.

Paragraph (2)
To ensure the implementation of Expert Personnel responsibilities, Reinsurance Brokerage Companies must, among other things, determine the scope of Expert Personnel responsibilities, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel responsibilities, and conduct monitoring and evaluation of the implementation of Expert Personnel responsibilities.

Number 7
Article 20A
Sufficiently clear.

Number 8
Article 21
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
To ensure the implementation of Expert Personnel duties, Insurance Loss Assessors must, among other things, determine the scope of Expert Personnel duties, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel duties, and conduct monitoring and evaluation of the implementation of Expert Personnel duties.

Number 9
Article 22
Paragraph (1)
Sufficiently clear.

Paragraph (2)
To ensure the implementation of Expert Personnel responsibilities, Insurance Loss Assessors must, among other things, determine the scope of duties and responsibilities of Expert Personnel, establish standard working procedures for Expert Personnel, determine the format and frequency of reports on the implementation of Expert Personnel responsibilities, and conduct monitoring and evaluation of the implementation of Expert Personnel responsibilities.

Number 10
Article 40
Sufficiently clear.

Number 11
Sufficiently clear.

Number 12
Article 51A
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Letter a
Sufficiently clear.

Letter b
Individual policies are not group policies, and policyholders are individuals or legal entities.

Letter c
Examples of simple risk selection (underwriting) processes include those that do not require direct surveys or face-to-face inspections of the risk object or health examinations. Examples of insurance or Sharia insurance products that do not require direct surveys include new motor vehicle insurance that does not require physical vehicle inspections, while insurance that does not require health examinations includes life insurance with guaranteed acceptance underwriting criteria.

Letter d
Number 1
The term "single-year life insurance" refers to life insurance with a coverage period of one year or less.

Number 2
Sufficiently clear.

Number 3
Sufficiently clear.

Number 4
Sufficiently clear.

Number 5
Sufficiently clear.

Number 6
Sufficiently clear.

Number 7
Sufficiently clear.

Number 8
Examples of miscellaneous insurance include insurance for movable property such as furniture, smartphones, tablets, laptops, computers, and televisions, as well as pet insurance.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Letter a
The term "specification of insurance or Sharia insurance products" refers to explanations regarding the insurance or Sharia insurance products to be offered on Digital Insurance Brokerage Services, including insurance benefits, covered risks, premium or contribution amounts, underwriting regulations, and claim procedures.

Letter b
Sufficiently clear.

Letter c
The term "proof of readiness to use Digital Insurance Brokerage Services" refers to documents that can provide information regarding the readiness of Insurance Brokerage Companies to provide Digital Insurance Brokerage Services for the insurance or Sharia insurance products to be offered, including:
a. availability of documents and forms used in insurance offers and closures, such as product and service information summaries, insurance application forms, and claim forms; b. Digital Insurance Brokerage Service procedures for the insurance or Sharia insurance products to be offered;
c. information regarding the Electronic Systems to be used for providing Digital Insurance Brokerage Services for the products to be offered; and
d. cooperation with other parties in the provision of Digital Insurance Brokerage Services, if any.

Letter d
Sufficiently clear.

Paragraph (7)
The term "insurance brokerage services for intermediary services conducted partially digitally" refers to intermediary services where one or more stages of offering, selecting insurance or Sharia insurance products, and/or risk selection (underwriting) are conducted non-digitally.

Article 51B
Sufficiently clear.

Article 51C
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Letter a
Sufficiently clear.

Letter b
Sufficiently clear.

Letter c
The term "expertise in Information Technology" includes expertise and experience in the development and management of databases, networks, electronic system security, and programming. Examples of proof of having expertise include certifications.

Letter d
Sufficiently clear.

Letter e
The term "proof of ownership, control, and management of electronic systems" includes proof of ownership of websites or applications.

Letter f
Sufficiently clear.

Letter g
Sufficiently clear.

Letter h
Sufficiently clear.

Letter i
Sufficiently clear.

Article 51D
Sufficiently clear.

Article 51E
Paragraph (1)
Owned, controlled, and managed includes the ability to develop, modify, and delete Electronic Systems.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
The term "development of Electronic Systems" includes maintenance of Electronic Systems.

Paragraph (4)
Sufficiently clear.

Paragraph (5)
Examples of communication media used include email, call centers, or other communication media.

Article 51F
Sufficiently clear.

Article 51G
Paragraph (1)
The term "expertise in Information Technology" includes expertise in the development and management of databases, networks, electronic system security, and programming.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Article 51H
Letter a
Number 1
Sufficiently clear.

Number 2
The term "parties that cooperate with Insurance Companies, Sharia Insurance Companies, or Insurance Brokerage Companies" includes payment gateway service providers.

Letter b
Sufficiently clear.

Number 13
Article 52
Paragraph (1)
The term "cooperation with other parties" includes:
a. cooperation between Insurance Brokerage Companies and banks, financing companies, online marketers (including e-commerce, e-ticket sales, e-transportation as business carriers), and/or direct marketers; or b. cooperation between Insurance Loss Assessors and foreign insurance loss assessors.

Paragraph (2)
Sufficiently clear.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
Letter a
Number 1
The term "insurer" refers to Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, or Sharia Reinsurance Companies.

Number 2
Sufficiently clear.

Letter b
Sufficiently clear.

Number 14
Article 54A
Paragraph (1)
Letter a
Sufficiently clear.

Letter b
The term "cooperation with Information Technology providers" includes Insurance Brokerage Companies cooperating with other parties to provide information technology in the form of websites and/or mobile applications owned by Insurance Brokerage Companies.

Letter c
Sufficiently clear.

Paragraph (2)
Letter a
The term "management of Digital Insurance Brokerage Services to other parties" includes Insurance Brokerage Companies outsourcing the operation of its website in activities offering insurance or Sharia insurance products, selecting insurance or Sharia insurance products, and risk selection (underwriting) to other parties.

Letter b
The term "outsourcing the management of prospective policyholder, insured, or participant data" includes Insurance Brokerage Companies outsourcing the management of policyholder personal data using Insurance Brokerage Company services to other parties, so that the policyholder's personal data is managed by other parties.

Letter c
Sufficiently clear.

Number 15
Sufficiently clear.

Number 16
Article 55A
Sufficiently clear.

Article 55B
Paragraph (1)
Examples of other documents include broker appointment letters and offering slips.

Paragraph (2)
Letter a
The Chairman is commonly known as the lead broker.
Members are commonly known as sub-brokers.

Letter b
Sufficiently clear.

Letter c
Sufficiently clear.

Letter d
Sufficiently clear.

Letter e
Sufficiently clear.

Letter f
Sufficiently clear.

Number 17
Article 56
Paragraph (1)
The term "at any time" means from the time the Insurance Brokerage Company submits a request for OJK approval to conduct Digital Insurance Brokerage Services and throughout the period the Insurance Brokerage Company conducts Digital Insurance Brokerage Services.

Paragraph (2)
Deleted.

Number 18
Article 59
Sufficiently clear.

Number 19
Article 60
Paragraph (1)
Sufficiently clear.

Paragraph (2)
Deleted.

Paragraph (3)
Sufficiently clear.

Paragraph (4)
The term "less than 6 (six) months until the end of the calendar year" means from July 1 to December 31.

Paragraph (5)
Sufficiently clear.

Paragraph (6)
Sufficiently clear.

Number 20
Article 61
Sufficiently clear.

Number 21
Article 63
Sufficiently clear.

Number 22
Article 65
Sufficiently clear.

Number 23
Article 66
Sufficiently clear.

Number 24
Article 67
Sufficiently clear.

Article II
Sufficiently clear.

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 27/OJK

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 28 OF 2022
CONCERNING
AMENDMENTS TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 70/POJK.05/2016 CONCERNING THE BUSINESS OPERATIONS OF INSURANCE BROKERAGE COMPANIES, REINSURANCE BROKERAGE COMPANIES, AND INSURANCE LOSS ASSESSORS

EXAMPLE FORMAT FOR APPLICATION FOR APPROVAL OF DIGITAL INSURANCE BROKERAGE SERVICES

[COMPANY LETTERHEAD]

To:
The Executive Head of Insurance Supervision, Pension Funds, Financing Institutions, and Other Financial Service Institutions u.p. Director of Supporting Services for Non-Bank Financial Institutions Wisma Mulia 2 Building Jalan Jenderal Gatot Subroto Kav. 40, Jakarta 12710

Pursuant to Financial Services Authority Regulation Number ... Year ... concerning Amendments to Financial Services Authority Regulation Number 70/POJK.05/2016 concerning the Business Operations of Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Insurance Loss Assessors, we hereby submit an application for approval to conduct Digital Insurance Brokerage Services *):

Name : PT/ Cooperative *) .....
Address : .....
City .....
Province .....
Phone/Fax No. : .....
Email : .....

To complete the aforementioned application, we hereby submit the following documents:
a. Organizational structure completed with descriptions of duties, authorities, responsibilities, and procedures related to the conduct of Digital Insurance Brokerage Services; b. proof that the company has met equity requirements, namely:

1. company financial reports for the last 2 (two) quarters prior to the approval request for Insurance Brokerage Companies; or
2. company financial reports audited by public accountants for other parties;
   c. proof of having human resources with at least 3 (three) years of experience and expertise in Information Technology;
   d. policies and procedures for Digital Insurance Brokerage Services to be conducted; e. proof of control over Electronic Systems; f. proof of ownership and/or cooperation agreements or leases for data centers and disaster recovery centers; g. proof of readiness to apply risk management, including risk analysis and risk control results; h. list of cooperation agreements conducted in Digital Insurance Brokerage Services;
   i. business plan for a period of up to 3 (three) years ahead, which must contain at least:
3. business strategy, including targets and steps for target realization;
4. Information Technology infrastructure development; and
   j. human resource and organizational development.

We may inform you that for the purposes of conducting this business, you may contact Mr./Ms. ..., via email ... or phone number ...

This is our application, and we thank you for your attention, Sir/Madam*).

Board of Directors
PT/ Cooperative *) ....................
………………………………
*) strike out what is not necessary

CHAIRMAN OF THE BOARD OF COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
OF THE REPUBLIC OF INDONESIA, ttd
MAHENDRA SIREGAR