Insurance Products and Insurance Product Marketing Channels

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FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 8 OF 2024
CONCERNING
INSURANCE PRODUCTS AND INSURANCE PRODUCT MARKETING CHANNELS 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 5A and Article 11 paragraph (4) 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 use of electronic or digital insurance policies and the governance of premium/contribution calculations more carefully to ensure that insurance companies or Sharia insurance companies can meet all obligations to policyholders, insureds, or participants; b. that the Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Insurance Product Marketing needs to be adjusted to the development of increasingly varied and dynamic insurance product and marketing innovations, so that it is necessary to simplify the insurance product approval process while still prioritizing prudential and market conduct aspects;
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 Insurance Products and Insurance Product Marketing Channels;
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) 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);
   RESOLVES:
   To establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING INSURANCE PRODUCTS AND INSURANCE PRODUCT MARKETING CHANNELS.

CHAPTER I
GENERAL PROVISIONS
Article 1
In this Financial Services Authority Regulation, the following terms are defined as:

1. Insurance Product is a risk coverage/management service program carried out by general insurance companies and/or life insurance companies, including those organized based on Sharia principles.

2. Insurance Product Linked to Investment, hereinafter referred to as PAYDI, is an Insurance Product that provides at least death risk coverage and provides benefits that refer to the investment results of a fund pool specifically formed for the Insurance Product, whether stated in unit form or not.

3. Joint Insurance Product is an Insurance Product designed to be marketed and underwritten/managed by 2 (two) or more insurance companies or Sharia insurance companies.

4. Micro Insurance Product is an Insurance Product designed to provide coverage for financial risks faced by the community, especially low-income communities.

5. Insurance Policy is an insurance agreement act or other document equated with the insurance agreement act, and other documents that are an inseparable part of the insurance agreement, and contain the agreement between the insurance company or Sharia insurance company and the policyholder, which is made in writing, either in print or electronic form.

6. Sharia Principle is the principle of Islamic law in insurance activities based on fatwas issued by an institution having authority in setting fatwas in the Sharia field.

7. Insurance Company is a general insurance company and a life insurance company.

8. Sharia Insurance Company is a Sharia general insurance company and a Sharia life insurance company.

9. Tabarru' Fund is a pool of funds originating from participants' contributions, the mechanism of which is used in accordance with the Sharia insurance agreement or Sharia reinsurance agreement.

10. Tanahud Fund is a pool of funds originating from Tanahud contributions, investment results of the Tanahud fund, qardh from the company's funds to the Tanahud fund, and/or Tanahud funds from the reinsurer, the use of which is in accordance with the Tanahud fund gift deed.

11. Policyholder is a party that binds itself based on an agreement with the Insurance Company, Sharia Insurance Company, reinsurance company, or Sharia reinsurance company to obtain coverage or management of risks for itself, the insured, or other participants.

12. Insured is a party facing risks as regulated in the insurance agreement or reinsurance agreement.

13. Participant is a party facing risks as regulated in the Sharia insurance agreement or Sharia reinsurance agreement.

14. Insurance Agent is an individual who works alone or works for a business entity, who acts for and on behalf of the Insurance Company or Sharia Insurance Company and meets the requirements to represent the Insurance Company or Sharia Insurance Company in marketing insurance products or Sharia insurance products.

15. Premium is a sum of money determined by the Insurance Company or reinsurance company and approved by the Policyholder to be paid based on the insurance agreement or reinsurance agreement, or a sum of money determined based on statutory provisions underlying mandatory insurance programs to obtain benefits.

16. 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 the Sharia insurance agreement or Sharia reinsurance agreement to obtain benefits from the Tabarru' Fund and/or Participant investment funds and to pay management costs, or a sum of money determined based on statutory provisions underlying mandatory insurance programs to obtain benefits.

17. Company Actuary is an individual who has obtained certification from the association governing the actuarial field, who is appointed and works full-time as an actuary at the Insurance Company or Sharia Insurance Company where they work.

18. Bancassurance is a cooperative activity between an Insurance Company or Sharia Insurance Company and a bank in order to market Insurance Products through the bank.

CHAPTER II
INSURANCE PRODUCTS
First Section
Types and Criteria of Insurance Products
Article 2
(1) Insurance Products marketed by Insurance Companies and Sharia Insurance Companies include:
a. programs that promise coverage for 1 (one) or more insurable risks arising from uncertain events by providing compensation to the Policyholder, Insured, or Participant for losses, damages, costs incurred, lost profits, or legal liability to third parties that may be suffered by the Policyholder, Insured, or Participant; b. programs that promise coverage for 1 (one) or more risks related to the death and/or survival of the Insured/Participant, or life insurance annuities;
c. programs that promise coverage for 1 (one) or more risks by providing compensation or payment to the Policyholder, Insured, or Participant, or other entitled parties related to the physical health condition of a person or the decline in the health condition of the insured person; and
d. programs that promise coverage for 1 (one) or more risks by providing compensation or payment to the Policyholder, Insured, or Participant, or other entitled parties in the event of an accident. (2) In addition to Insurance Products as referred to in paragraph (1), Insurance Companies and Sharia Insurance Companies may market:
a. programs that provide coverage/management for the risk of debtors' failure to fulfill financial obligations to creditors in accordance with credit agreements, or programs that provide management for the risk of debtors' failure to fulfill financial obligations to creditors in accordance with Sharia financing agreements; b. programs that provide guarantees over the principal's ability to enter into agreements in accordance with the main agreement between the principal and the obligee; and
c. PAYDI.

Article 3
Insurance Products must:
a. provide coverage for at least 1 (one) type of insurable risk; b. have Premiums/Contributions that are appropriate for the promised benefits, which are set at a level that is sufficient, not excessive, and not applied discriminatorily; and
c. have Insurance Policies that do not contain words, phrases, or sentences that can:

1. cause different interpretations regarding the covered risks, the obligations of the Insurance Company and Sharia Insurance Company, and the obligations of the Policyholder, Insured, or Participant; and/or
2. make it difficult for the Policyholder, Insured, or Participant to manage their rights.

Article 4
(1) Insurance Companies or Sharia Insurance Companies conducting PAYDI must at all times meet the following provisions:
a. have a Company Actuary; b. have investment management personnel;
c. have adequate information systems; and
d. have resources capable of supporting PAYDI management.
(2) PAYDI must meet the criteria:
a. have a proportion of death risk coverage and benefits linked to investment; b. have a specific coverage period; and
c. have a specific investment strategy.
(3) Insurance Companies or Sharia Insurance Companies conducting PAYDI must:
a. record and report assets and liabilities for each sub-fund separately from other assets and liabilities owned or managed by the Insurance Company or Sharia Insurance Company; b. have and apply policies and investment strategies for PAYDI;
c. allocate investments from each Policyholder, Insured, or Participant according to the sub-fund chosen by the Policyholder, Insured, or Participant; and
d. apply effective risk management against exchange rate risks on liabilities in foreign currencies.
(4) Insurance Companies or Sharia Insurance Companies conducting PAYDI must carry out PAYDI asset and liability management covering:
a. determining the sufficiency of Premiums/Contributions;

b. allocating portions of Premiums/Contributions for the formation of cash values;
c. having specific investment strategies for each sub-fund;
d. implementing investment strategies; e. adjusting investment placements in accordance with investment strategies; f. calculating net asset values; g. determining fee levies; h. managing all assets sourced from PAYDI, including storage, recording, and accounting; and
i. having a custodian service usage agreement.
(5) Further provisions regarding the requirements for Insurance Companies or Sharia Insurance Companies that can conduct PAYDI, PAYDI criteria, and PAYDI asset and liability management as referred to in paragraphs (1) to (4) shall be determined by the Financial Services Authority.

Article 5
(1) Joint Insurance Products are prohibited from being designed to be marketed and underwritten/managed through cooperation mechanisms other than between Insurance Companies or Sharia Insurance Companies conducting:
a. general insurance business with other general insurance businesses; b. Sharia general insurance business with other Sharia general insurance businesses;
c. life insurance business with other life insurance businesses;
d. Sharia life insurance business with other Sharia life insurance businesses; e. general insurance business with life insurance business; or f. Sharia general insurance business with Sharia life insurance business. (2) The risk sharing between parties as referred to in paragraph (1) in Joint Insurance Products must be in accordance with the scope of business of each Insurance Company and/or Sharia Insurance Company's business field. (3) Joint Insurance Products as referred to in paragraph (1) do not include co-insurance conducted by 2 (two) or more Insurance Companies or Sharia Insurance Companies with similar business fields in order to spread risks for 1 (one) coverage object on a case-by-case basis.

Article 6
(1) The implementation of Joint Insurance Products as referred to in Article 5 paragraph (1) must be based on a written agreement.
(2) The written agreement as referred to in paragraph (1) must at least contain:
a. membership structure, including the Insurance Company or Sharia Insurance Company that serves as the chair to coordinate the marketing activities of the Joint Insurance Product; b. rights and obligations of each company joined in the implementation of the Joint Insurance Product, including:

1. duties of the Insurance Company or Sharia Insurance Company that serves as the chair; and
2. obligations of all parties to maintain the confidentiality of Policyholder, Insured, or Participant data;
   c. specifications and design of the Joint Insurance Product that is the object of the agreement or marketing;
   d. risks underwritten/managed by each Insurance Company or Sharia Insurance Company joined in the implementation of the Joint Insurance Product in accordance with their respective business scopes, and Joint Insurance Products conducted by Insurance Companies or Sharia Insurance Companies with similar business fields as referred to in Article 5 paragraph (1) letters a to d, with the provision that the Insurance Company or Sharia Insurance Company serving as the chair must bear a larger portion of the risk; e. clauses regarding procedures or methods for:
3. insurance applications;
4. risk selection (underwriting) and determination of Premiums/Contributions;
5. receipt of Premiums/Contributions from Policyholders, Insureds, or Participants;
6. forwarding of Premiums/Contributions to all Insurance Companies or Sharia Insurance Companies joined in the implementation of the Joint Insurance Product;
7. claim settlement and payment; and
8. resolution of complaints from Policyholders, Insureds, or Participants;
   f. the duration of the cooperation agreement for the implementation of the Joint Insurance Product; g. procedures for resolving disputes between Insurance Companies or Sharia Insurance Companies joined in the implementation of the Joint Insurance Product; and h. conditions causing the termination of the agreement. (3) Claim settlement for Joint Insurance Products must be carried out based on mutual agreement of the Insurance Companies or Sharia Insurance Companies conducting the Joint Insurance Product in accordance with the written agreement as referred to in paragraph (2).

(4) In the event that 1 (one) or more Insurance Companies or Sharia Insurance Companies terminate the cooperation agreement for the implementation of the Joint Insurance Product or are prohibited from marketing the Joint Insurance Product, then:
a. all Insurance Companies or Sharia Insurance Companies joined in the implementation of the Joint Insurance Product remain obligated to be responsible for ongoing coverage/participation in accordance with the scope of risks guaranteed by each Insurance Company or Sharia Insurance Company in accordance with the written agreement as referred to in paragraph (2); b. risks underwritten/managed in the implementation of the Joint Insurance Product must be adjusted by the Insurance Companies or Sharia Insurance Companies that remain joined; and
c. the implementation of the Joint Insurance Product must be terminated if there are no Insurance Companies or Sharia Insurance Companies that can cover insurance risks that are similar to the business field of the risks covered by the Insurance Company or Sharia Insurance Company that terminates the cooperation or is subject to a prohibition on marketing the Joint Insurance Product.

Article 7
(1) Micro Insurance Products must have the following characteristics:
a. simple; b. easy;
c. economical; and
d. immediate.
(2) Further provisions regarding Micro Insurance Products as referred to in paragraph (1) shall be determined by the Financial Services Authority.

Article 8
(1) Insurance Products that can be marketed by general insurance companies and Sharia general insurance companies are Insurance Products as referred to in Article 2 paragraph (1) letters a, c, d, and Article 2 paragraph (2). (2) Insurance Products that can be marketed by life insurance companies and Sharia life insurance companies are Insurance Products as referred to in Article 2 paragraph (1) letters b, c, d, and Article 2 paragraph (2) letter c. (3) Micro Insurance Products that can be marketed by general insurance companies and Sharia general insurance companies are Insurance Products as referred to in paragraph (1), except for PAYDI and general insurance or Sharia general insurance business lines that are complex. (4) Micro Insurance Products that can be marketed by life insurance companies and Sharia life insurance companies are Insurance Products as referred to in paragraph (2), except for life insurance annuities and PAYDI. (5) Insurance Products that can be marketed by general insurance companies and Sharia general insurance companies as referred to in paragraph (1) and/or life insurance companies and Sharia life insurance companies as referred to in paragraph (2) may be expanded by following the expansion of the scope of insurance business.

Article 9
Insurance Companies and Sharia Insurance Companies marketing Group Insurance Products must ensure that the Insured/Participant has an insurable interest with the Policyholder and/or beneficiary regarding the object, benefit, or risk covered in the Group Insurance Product.

Article 10
The implementation of life insurance annuities or Sharia life insurance annuities for pension fund programs by life insurance companies and Sharia life insurance companies must be carried out in accordance with Financial Services Authority Regulations concerning the implementation of pension funds.

Article 11
(1) Insurance Companies and Sharia Insurance Companies must give a name to each Insurance Product marketed.
(2) The name of the Insurance Product marketed as referred to in paragraph (1) must meet the following provisions:
a. use the word insurance, insurance, synonymous words, or words characterizing the activities of the Insurance Company; b. use the words Sharia insurance, sharia insurance/takaful, synonymous words, or words characterizing the activities of the Sharia Insurance Company;
c. not cause interpretation that the product is not an Insurance Product; and
d. be in accordance with the name of the Insurance Product when reported to the Financial Services Authority.
(3) The name of Micro Insurance Products must use the phrase "micro insurance" or synonymous phrases.
(4) The Financial Services Authority has the authority to issue written instructions to Insurance Companies and Sharia Insurance Companies to change the name of Insurance Products if the name of the Insurance Product does not comply with the provisions as referred to in paragraphs (1) to (3).

(5) Insurance Companies and Sharia Insurance Companies must comply with the written instructions of the Financial Services Authority as referred to in paragraph (4).

Second Section
Insurance Policies
Article 12
Insurance Companies and Sharia Insurance Companies conducting Insurance Products must issue Insurance Policies that at least contain provisions regarding:
a. the start and end dates of coverage/participation; b. description of promised benefits and excluded risks, including amounts, timing, requirements, and conditions for benefit provision;
c. methods and timing of Premium/Contribution payments;
d. grace period for Premium/Contribution payments; e. use of equivalent exchange rates issued by Bank Indonesia at the time of payment for Insurance Policies in foreign currency if Premium/Contribution payments and/or benefits are linked to the rupiah currency; f. the time recognized as the time of receipt of Premium/Contribution payments; g. the Insurance Company's or Sharia Insurance Company's policy set if Premium/Contribution payments are made after the agreed grace period; h. the period during which the Insurance Company or Sharia Insurance Company cannot review the validity of the insurance contract on life or health Insurance Products with a coverage/participation period of more than 1 (one) year;
i. cash value tables, for Insurance Products that have guaranteed cash values in accordance with the Insurance Policy;
j. methods for calculating the amount of cash values for Insurance Products that have cash value benefits whose amounts are not guaranteed in accordance with the Insurance Policy; k. calculation of Insurance Policy dividends or similar, for Insurance Products marketed by life insurance companies or Sharia life insurance companies that promise Insurance Policy dividends or similar;
l. termination of coverage/participation, either by the Insurance Company or Sharia Insurance Company or by the Policyholder, Insured, or Participant, including conditions, causes, obligations of each party, and rights or benefits obtained by the Policyholder, Insured, or Participant;
m. conditions and procedures for filing claims, including relevant supporting evidence required in the claim filing; and n. procedures and timeframes for claim settlement and payment;

o. dispute resolution mechanisms, including both in-court and out-of-court resolution, and the selection of the dispute resolution venue; p. the language used as a reference in the event of a dispute or difference of opinion, for Insurance Policies printed in 2 (two) or more languages; q. the procedure for resolving complaints by Policyholders, Insureds, or Participants; r. the period for reviewing the policy for Insurance Products with a period of more than 1 (one) year; and s. the waiting period, if any.

Article 13
In addition to the provisions as referred to in Article 12, Islamic Insurance Companies that administer Insurance Products based on Sharia principles are required to issue Insurance Policies containing provisions regarding:
a. the type of contract (akad) used; b. the rights, obligations, and authority of each party based on the agreed contract;
c. the amount of Contributions allocated to Tabarru’ Funds, Tanahud Funds, ujrah, and/or Participants’ investment funds;
d. the amount, timing, and method of profit-sharing from investment returns in the event the Insurance Product uses the mudharabah or mudharabah musytarakah contract; e. the amount, timing, and method of ujrah deduction in the event the wakalah bil ujrah contract is used; f. the allocation of underwriting surplus usage for Tabarru’ Funds, Participants’ funds, and/or Islamic Insurance Company funds; g. the provision of qardh by the Islamic Insurance Company; and h. the use of Tabarru’ Funds, Tanahud Funds, and/or Participants’ investment funds in accordance with the type of contract used.

Article 14
Insurance Companies that administer and market Micro Insurance Products are required to issue Insurance Policies containing provisions as referred to in Article 12 letters a, b, c, d, f, g, h, l, m, n, p, q, and s.

Article 15
Islamic Insurance Companies that administer and market Micro Insurance Products based on Sharia principles are required to issue Insurance Policies containing provisions as referred to in Article 12 letters a, b, c, d, f, g, h, l, m, n, p, q, s, and Article 13 letters a, c, d, e, f, g, and h.

Article 16
In addition to the provisions as referred to in Article 12 and Article 13, Insurance Companies and Islamic Insurance Companies that administer and market PAYDI must follow the Insurance Policy provisions for PAYDI as referred to in the provisions regarding PAYDI.

Article 17
(1) In addition to the provisions as referred to in Article 12 and Article 13, Insurance Companies and Islamic Insurance Companies that administer Joint Insurance Products must include in the Insurance Policy for Joint Insurance Products the risk portions to be borne by each Insurance Company and Islamic Insurance Company joined in the marketing of the Joint Insurance Product. (2) The Insurance Policy for Joint Insurance Products is issued by the Insurance Company or Islamic Insurance Company that serves as the chairman in the marketing of the Joint Insurance Product. (3) The Insurance Policy for Joint Insurance Products must be signed by:
a. all Insurance Companies and Islamic Insurance Companies joined in the marketing of the Joint Insurance Product; or b. the Insurance Company or Islamic Insurance Company that serves as the chairman in the marketing of the Joint Insurance Product. (4) In the event that the Insurance Policy for Joint Insurance Products is signed only by the Insurance Company or Islamic Insurance Company that serves as the chairman in the marketing of the Joint Insurance Product, the written agreement as referred to in Article 6 paragraph (1) and the Insurance Policy for Joint Insurance Products as referred to in paragraph (1) must contain provisions:
a. approval from the Insurance Companies and Islamic Insurance Companies joined in the administration of the Joint Insurance Product to the chairman to sign the Insurance Policy; and b. the Insurance Companies and Islamic Insurance Companies joined in the administration of the Joint Insurance Product are bound according to their respective risk portions.

Article 18
In policy provisions governing dispute resolution over insurance agreements conducted through the courts, Insurance Companies and Islamic Insurance Companies are prohibited from including provisions that restrict the choice of court only to the court at the domicile of the Insurance Company or Islamic Insurance Company.

Article 19
(1) Insurance Policies must be written clearly so that they can be easily read and understood by Policyholders, Insureds, or Participants.
(2) In the event that the Insurance Policy contains formulations that can be interpreted as:
a. exclusions or restrictions on covered risk causes based on the relevant Insurance Policy; and/or b. reduction, restriction, or exemption of the obligations of the Insurance Company or Islamic Insurance Company, the relevant formulation must be written or printed in bold or italic so that the existence of exclusions or restrictions on risk causes or the existence of reduction, restriction, or exemption of the obligations of the Insurance Company or Islamic Insurance Company can be easily identified.

Article 20
(1) Insurance Companies or Islamic Insurance Companies that market Insurance Products are required to:
a. issue Insurance Policies; and b. deliver the Insurance Policies to Policyholders, Insureds, or Participants.
(2) The Insurance Policies as referred to in paragraph (1) are issued and delivered in printed or electronic form to Policyholders, Insureds, or Participants.
(3) In the event that Insurance Policies are issued and delivered in electronic form as referred to in paragraph (2), Insurance Companies or Islamic Insurance Companies are required to provide access to Policyholders, Insureds, or Participants to obtain and/or print copies of the Insurance Policies as referred to in paragraph (2). (4) In the event that Insurance Policies are issued and delivered in electronic form as referred to in paragraph (2), Insurance Companies or Islamic Insurance Companies are prohibited from requiring claim submission document requirements in the form of printed Insurance Policies. (5) In the event that Policyholders, Insureds, or Participants request Insurance Policies in printed form, Insurance Companies or Islamic Insurance Companies are required to deliver the Insurance Policies in printed form and are permitted to charge shipping costs for the Insurance Policies to Policyholders, Insureds, or Participants.

Article 21
(1) In the marketing of Group Insurance Products, Insurance Companies or Islamic Insurance Companies are required to issue:
a. a master Insurance Policy attached with a list of names of Insureds/Participants and the coverage period for each Insured/Participant; and b. proof of participation in printed or electronic form for each Insured/Participant. (2) Insurance Policies for Group Insurance Products must state the interest relationship between Insureds/Participants and/or the insured object with the Policyholder and/or the beneficiary of the object, benefit, or risk insured. (3) In the event that proof of participation is issued in electronic form as referred to in paragraph (1) letter b, Insurance Companies or Islamic Insurance Companies are required to provide access to Insureds/Participants to obtain and/or print copies of the proof of participation as referred to in paragraph (1) letter b. (4) In the event that proof of participation is issued in electronic form as referred to in paragraph (1) letter b, Insurance Companies or Islamic Insurance Companies are prohibited from requiring claim submission document requirements in the form of printed proof of participation.

Article 22
(1) Insurance Companies or Islamic Insurance Companies may use standard insurance policies made by the insurance industry association.
(2) Each standard insurance policy as referred to in paragraph (1) must be reported by the chairman of the insurance industry association to the Financial Services Authority to obtain an approval letter. (3) Standard insurance policies as referred to in paragraph (2) must meet the provisions regarding Insurance Policies as regulated in this Financial Services Authority Regulation.

Article 23
(1) In every insurance closing, Insurance Companies or Islamic Insurance Companies are required to ensure that the issuance of Insurance Policies complies with the specimen of Insurance Policies that are part of the Insurance Products that have:
a. received approval from the Financial Services Authority; or b. been reported to the Financial Services Authority.
(2) The obligation as referred to in paragraph (1) is exempted for Insurance Products that are not required to obtain approval or are not required to be reported to the Financial Services Authority in accordance with the provisions in this Financial Services Authority Regulation.

Article 24
(1) In the event that the Financial Services Authority assesses that the provisions of Insurance Policies or standard insurance policies contain matters that can cause harm to:
a. Policyholders; b. Insureds/Participants; and/or
c. Insurance Companies or Islamic Insurance Companies,
the Financial Services Authority has the authority to issue written instructions to Insurance Companies, Islamic Insurance Companies, and/or insurance industry associations to change the relevant Insurance Policy or standard insurance policy provisions. (2) Insurance Companies, Islamic Insurance Companies, and/or insurance industry associations are required to comply with the written instructions of the Financial Services Authority as referred to in paragraph (1).

Part Three
Premiums or Contributions

Article 25
(1) Insurance Companies and Islamic Insurance Companies in managing Premiums/Contributions from Policyholders must be able to calculate the risks and benefits that will be obtained by Policyholders and ensure that there is no failure by Insurance Companies and Islamic Insurance Companies in fulfilling obligations to Policyholders, Insureds, or Participants. (2) In calculating the risks and benefits that will be obtained by Policyholders and ensuring that there is no failure by Insurance Companies and Islamic Insurance Companies in fulfilling obligations to Policyholders, Insureds, or Participants as referred to in paragraph (1), Insurance Companies and Islamic Insurance Companies are required to conduct:
a. Premium/Contribution calculations based on reasonable assumptions and generally accepted insurance practices; and b. Premium/Contribution determinations based on the risks of the insured object and the benefits obtained by Policyholders, Insureds, or Participants.

Article 26
(1) Premium/Contribution calculations as referred to in Article 25 paragraph (2) letter a, marketed by general insurance companies and general Islamic insurance companies, must be conducted by considering at least:
a. Pure Premium/Contributions calculated based on risk profile and loss data of the relevant insurance type for the last minimum 5 (five) years; and b. acquisition costs, administrative costs, other general costs, and profit margins. (2) In the event that risk profile and loss data of the relevant insurance type as referred to in paragraph (1) letter a are not available, the following are used:
a. risk profile and loss data of the relevant insurance type for less than 5 (five) years; and/or b. accurate information from trusted sources to predict the frequency and magnitude of risks on the insured object. (3) General insurance companies and general Islamic insurance companies are required to review Premium/Contribution tariff calculations after having sufficient risk profile and loss data. (4) Premium/Contribution calculations for PAYDI, Health Insurance Products, and/or Personal Accident Insurance Products, marketed by general insurance companies and general Islamic insurance companies, must be conducted by considering at least:
a. Pure Premium/Contributions calculated based on risk profile data, interest rates/discount rates, mortality tables, and/or morbidity tables; b. estimated investment returns from Premiums/Contributions; and
c. acquisition costs, administrative costs, other general costs, and profit margins.
(5) Premium/Contribution calculations for Insurance Products marketed by life insurance companies and life Islamic insurance companies must be conducted by considering at least:
a. Pure Premium/Contributions calculated based on risk profile data, interest rates/discount rates, mortality tables, and/or morbidity tables; b. estimated investment returns from Premiums/Contributions; and
c. acquisition costs, administrative costs, other general costs, and profit margins.

Article 27
(1) In determining Premiums/Contributions as referred to in Article 25 paragraph (2) letter b, Insurance Companies and Islamic Insurance Companies are required to conduct risk assessment and selection in every insurance or Islamic insurance closing in accordance with the principle of prudence. (2) The results of risk assessment and selection as referred to in paragraph (1) must be used by Insurance Companies and Islamic Insurance Companies in determining Premiums/Contributions charged to Policyholders, Insureds, or Participants.

Part Four
Termination of Coverage/Participation

Article 28
(1) Termination of coverage/participation, whether at the will of the Insurance Company or Islamic Insurance Company or the Policyholder, Insured, or Participant, must be conducted with written and/or electronic notification. (2) In the event of termination of coverage/participation in Insurance Products, Insurance Companies or Islamic Insurance Companies are required to inform and ensure that Policyholders, Insureds, or Participants understand the consequences regarding costs arising and risks borne by Policyholders, Insureds, or Participants. (3) The obligation to inform and ensure that Policyholders, Insureds, or Participants understand the consequences of termination of coverage/participation as referred to in paragraph (2) must be documented by Insurance Companies or Islamic Insurance Companies. (4) At the time of termination of coverage/participation in Insurance Products as referred to in paragraph (1), the return of Premiums/Contributions is determined based on agreement between Insurance Companies or Islamic Insurance Companies and Policyholders, Insureds, or Participants, which is stated in the Insurance Policy as referred to in Article 12 letter l.

Part Five
Administrative Sanctions

Article 29
(1) Violations of the provisions as referred to in Article 4 paragraph (1), (2), (3), (4), Article 5 paragraph (1), (2), Article 6 paragraph (3), (4), Article 9, Article 10, Article 11 paragraph (5), Article 12, Article 13, Article 14, Article 15, Article 16, Article 17 paragraph (1), Article 18, Article 20 paragraph (1), (3), (4), (5), Article 21, Article 23 paragraph (1), Article 24 paragraph (2), Article 25 paragraph (2), Article 26 paragraph (1), (3), (4), (5), Article 27 paragraph (1), and/or Article 28 paragraph (2), (3) are subject to administrative sanctions in the form of:
a. written warnings; b. downgrade of health status; and/or
c. prohibition on marketing Insurance Products or Sharia-based Insurance Products for specific business lines.
(2) Violations of the provisions as referred to in Article 23 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp100,000,000.00 (one hundred million rupiah). (3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically. (4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Part Six
Re-evaluation of Key Parties

Article 30
In addition to imposing administrative sanctions as referred to in Article 29 paragraph (1), the Financial Services Authority has the authority to conduct re-evaluation of key parties of Insurance Companies or Islamic Insurance Companies.

CHAPTER III
Mechanism for the Administration of Insurance Products

Part One
General Provisions

Article 31
(1) Insurance Companies and Islamic Insurance Companies in the administration of Insurance Products are required to:
a. apply effective risk management; and b. consider the alignment of the administration of Insurance Products with the strategy and business plan of the Insurance Company or Islamic Insurance Company. (2) In addition to fulfilling the obligations as referred to in paragraph (1), the administration of Insurance Products is conducted in accordance with Financial Services Authority Regulations regarding:
a. consumer and public protection in the financial services sector; and b. financial sector technology innovation, if the administration of Insurance Products is a digital financial innovation. (3) In applying the provisions as referred to in paragraph (1), Insurance Companies and Islamic Insurance Companies must:
a. include the Insurance Product development plan in the business plan of the Insurance Company and Islamic Insurance Company; b. conduct self-identification and self-assessment of the Insurance Product development plan regarding the category of Insurance Products in accordance with the provisions regulated in this Financial Services Authority Regulation; and
c. obtain determination by the Insurance Product Development Committee on the results of the self-identification and self-assessment as referred to in letter b.
(4) The inclusion of the Insurance Product development plan in the business plan of Insurance Companies and Islamic Insurance Companies as referred to in paragraph (3) letter a must contain:
a. a general description of each Insurance Product to be developed; b. Insurance Products that receive approval from the Financial Services Authority before being marketed; and
c. Insurance Products that are reported to the Financial Services Authority.
(5) The provisions as referred to in paragraph (3) letter a are exempted in the development of Insurance Products for the implementation of Government programs and/or incidental in nature for a specific period. (6) In the event that an Insurance Company or Islamic Insurance Company does not have a Company Actuary, the Financial Services Authority has the authority to issue written instructions to the Insurance Company or Islamic Insurance Company to stop the marketing of Insurance Products. (7) Insurance Companies or Islamic Insurance Companies are required to comply with the written instructions of the Financial Services Authority as referred to in paragraph (6).

Part Two
Approval of Insurance Products

Article 32
(1) Insurance Companies or Islamic Insurance Companies are required to first obtain approval from the Financial Services Authority in the administration of Insurance Products as referred to in Article 31 paragraph (4) letter b, in the form of new Insurance Products and Insurance Products with specific criteria. (2) New Insurance Products as referred to in paragraph (1) are Insurance Products that:
a. have never been marketed by the relevant Insurance Company or Islamic Insurance Company; or b. are developments of Insurance Products that have been marketed and result in material changes from the design of the Insurance Products that have been marketed by the Insurance Company and Islamic Insurance Company, the scope of changes including:

1. covered risks, including exclusions or restrictions on covered risk causes; and/or
2. methods for calculating cash values.
   (3) Insurance Products meeting specific criteria as referred to in paragraph (1) are:
   a. Insurance Products with savings elements or cash values; b. Credit Insurance Products or Sharia Financing Insurance Products; and
   c. Insurance Products in the suretyship or Sharia suretyship business lines.

Article 33
(1) The Financial Services Authority may issue written instructions to Insurance Companies or Islamic Insurance Companies that are under intensive supervision or special supervision to obtain approval from the Financial Services Authority first in every administration of Insurance Products. (2) Insurance Companies or Islamic Insurance Companies are required to comply with the written instructions as referred to in paragraph (1).

Article 34
(1) To obtain approval from the Financial Services Authority as referred to in Article 32 paragraph (1), the approval application must be submitted by the board of directors or equivalent from the Insurance Company or Islamic Insurance Company. (2) In the event that the administration of Insurance Products is Joint Insurance Products, to obtain approval from the Financial Services Authority as referred to in Article 32 paragraph (1), the approval application must be submitted by the board of directors or equivalent from the Insurance Company or Islamic Insurance Company that serves as the chairman in the administration of the Joint Insurance Product.

Article 35
(1) Insurance Companies and Islamic Insurance Companies submitting applications for Insurance Product approval as referred to in Article 32 paragraph (1) must:
a. meet the minimum solvency requirements and investment adequacy as referred to in Financial Services Authority Regulations regarding the financial health of insurance and reinsurance companies and Financial Services Authority Regulations regarding the financial health of insurance and Sharia-based reinsurance companies; and b. not be subject to administrative sanctions in the form of business activity restrictions, for part or all of the business activities.

(2) The provisions referred to in paragraph (1) are exempted if the application for approval of the new Insurance Product is part of an action plan that has been approved by the Financial Services Authority as referred to in the Financial Services Authority Regulation regarding the determination of status and supervisory follow-up.

(3) To grant approval or rejection for the application for approval of a new Insurance Product as referred to in Article 32 paragraph (1), the Financial Services Authority is authorized to request documents and/or information related to the implementation of the aforementioned new Insurance Product.

(4) Insurance Companies and Sharia Insurance Companies must submit the documents and/or information referred to in paragraph (3) within the time period determined by the Financial Services Authority.

(5) In addition to the provisions referred to in paragraph (1), for Insurance Companies and Sharia Insurance Companies that market Credit Insurance Products, Sharia Financing Insurance Products, suretyship, and/or Sharia suretyship, they must fulfill other requirements/criteria as referred to in the Financial Services Authority Regulation regarding insurance products linked to credit or Sharia financing and suretyship products or Sharia suretyship products.

(6) In addition to the provisions referred to in paragraph (1), for Insurance Companies and Sharia Insurance Companies that market PAYDI, they must fulfill other requirements/criteria regarding PAYDI determined by the Financial Services Authority.

Article 36
In every application for approval of a new Insurance Product as referred to in Article 32 paragraph (1), an Insurance Company or Sharia Insurance Company must attach documents:
a. the results of self-identification and self-assessment that have received determination from the Insurance Product Development Committee as referred to in Article 31 paragraph (3) letter c; b. the application form for approval of the Insurance Product;
c. projections of Premium/Contribution income and expenses related to the marketing of the Insurance Product for a period of 3 (three) years;
d. description of the Insurance Product; e. specimen of the Insurance Policy; f. opinion from the Sharia supervisory board, for Sharia insurance products; and g. matrix comparing the Insurance Product before and after changes, if the reported new Insurance Product is a development of an Insurance Product already marketed and results in material changes.

Article 37
(1) In addition to the document completeness as referred to in Article 36, an Insurance Company or Sharia Insurance Company must attach a written agreement document as referred to in Article 6 paragraph (1) and paragraph (2) if the Joint Insurance Product is a new Insurance Product that has never been marketed by the Insurance Company or Sharia Insurance Company as referred to in Article 32 paragraph (2) letter a.

(2) In addition to the document completeness as referred to in Article 36, an Insurance Company or Sharia Insurance Company must attach a letter of approval for the previous Joint Insurance Product if the Joint Insurance Product is a new Insurance Product that is a development of an Insurance Product that has been marketed as referred to in Article 32 paragraph (2) letter b.

Article 38
In addition to the document completeness as referred to in Article 36, Insurance Companies and Sharia Insurance Companies that implement and market PAYDI must attach other documents as referred to in the provisions regarding PAYDI.

Article 39
The Financial Services Authority issues a letter of approval for new Insurance Products and Insurance Products meeting certain criteria as referred to in Article 32 paragraph (1) within a maximum of 10 (ten) working days after the documents are received in complete form.

Article 40
(1) In the event that the application for the implementation of an Insurance Product as referred to in Article 32 has not met the provisions of legislation or has not met the document completeness as referred to in Article 36 through Article 38, the Financial Services Authority conveys notification regarding the requirements to be met and/or documents to be completed to the Insurance Company or Sharia Insurance Company through:
a. letter; b. electronic mail;
c. meeting with the company party at the Financial Services Authority office;
d. electronic system; and/or e. other methods that can be traced and stored with evidence.

(2) If within a period of 20 (twenty) working days from the date of notification from the Financial Services Authority as referred to in paragraph (1), the Insurance Company or Sharia Insurance Company does not meet the requirements and/or complete the documents, the Insurance Company or Sharia Insurance Company is deemed to have canceled the implementation of the Insurance Product.

(3) If the Insurance Company or Sharia Insurance Company still intends to market a new Insurance Product after the time period as referred to in paragraph (2) has passed, the Insurance Company or Sharia Insurance Company must resubmit the application for approval of the implementation of the aforementioned Insurance Product to the Financial Services Authority.

Article 41
Further provisions regarding the procedures, forms, and formats for applications for approval of the implementation of Insurance Products as referred to in Article 36, Article 37, Article 38, and Article 40 are determined by the Financial Services Authority.

Third Section
Insurance Product Reporting

Article 42
(1) Insurance Companies and Sharia Insurance Companies may implement and market Insurance Products prior to obtaining approval from the Financial Services Authority, for:
a. Insurance Products that have never been marketed by the Insurance Company or Sharia Insurance Company as referred to in Article 32 paragraph (2) letter a and such Insurance Product does not meet certain criteria as referred to in Article 32 paragraph (3); b. Insurance Products that are developments of Insurance Products that have been marketed by the Insurance Company or Sharia Insurance Company and result in material changes as referred to in Article 32 paragraph (2) letter b, but do not meet certain criteria as referred to in Article 32 paragraph (3); and
c. Insurance Products that are developments of Insurance Products that have been marketed by the Insurance Company or Sharia Insurance Company, which meet certain criteria as referred to in Article 32 paragraph (3), but do not result in material changes as referred to in Article 32 paragraph (2) letter b.

(2) Insurance Companies and Sharia Insurance Companies are required to submit reports on the implementation of Insurance Products as referred to in paragraph (1) to the Financial Services Authority within a maximum of 5 (five) working days after the Insurance Product is marketed by the Insurance Company or Sharia Insurance Company.

Article 43
Reports on the implementation of Insurance Products as referred to in Article 42 paragraph (2) must attach documents:
a. the results of self-assessment that have received determination from the Insurance Product Development Committee as referred to in Article 31 paragraph (3) letter c; b. a statement letter from the Company Actuary and the director of the Insurance Company or Sharia Insurance Company;
c. specimen of the Insurance Policy;
d. matrix comparing the Insurance Product before and after changes, specifically for Insurance Products reported as developments of Insurance Products already marketed; e. opinion from the Sharia supervisory board, for Sharia insurance products; and f. written agreement as referred to in Article 6 paragraph (1) and paragraph (2) for Joint Insurance Products.

Article 44
(1) In the event that the Financial Services Authority assesses that the Insurance Product in the report as referred to in Article 42 paragraph (2) is a new Insurance Product and an Insurance Product with certain criteria as referred to in Article 32 paragraph (1), the Financial Services Authority is authorized to issue written instructions to the Insurance Company or Sharia Insurance Company to stop marketing the aforementioned Insurance Product.

(2) The Insurance Company or Sharia Insurance Company is required to comply with the written instructions of the Financial Services Authority as referred to in paragraph (1).

Article 45
Further provisions regarding the procedures, forms, and formats for reporting Insurance Products as referred to in Article 43 are determined by the Financial Services Authority.

Fourth Section
Administrative Sanctions

Article 46
(1) Violations of the provisions as referred to in Article 31 paragraph (1), paragraph (7), Article 32 paragraph (1), Article 33 paragraph (2), Article 35 paragraph (5), paragraph (6), Article 42 paragraph (2), Article 43, and/or Article 44 paragraph (2), are subject to administrative sanctions in the form of:
a. written warning; b. reduction of health level; and/or
c. prohibition to market Insurance Products or Insurance Products with Sharia Principles for specific business lines.

(2) Violations of the provisions as referred to in Article 32 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah).

(3) Violations of the provisions as referred to in Article 42 paragraph (2) are subject to additional administrative sanctions in the form of an administrative fine of IDR 500,000.00 (five hundred thousand rupiah) per day of delay and a maximum of IDR 100,000,000.00 (one hundred million rupiah).

(4) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically.

(5) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Fifth Section
Re-evaluation of Key Parties

Article 47
In addition to imposing administrative sanctions as referred to in Article 46 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the key parties of the Insurance Company or Sharia Insurance Company.

CHAPTER IV
INSURANCE PRODUCT MARKETING CHANNELS

First Section
General

Article 48
(1) Insurance Companies and Sharia Insurance Companies may only market Insurance Products through marketing channels:
a. directly; b. insurance agents;
c. Bancassurance;
d. entities other than banks; and/or e. special marketing personnel for Micro Insurance Products.

(2) Further provisions regarding the marketing channels as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 49
Insurance Companies and Sharia Insurance Companies that will market Insurance Products through marketing channels as referred to in Article 48 paragraph (1) letters b through d must have a written agreement with the party conducting the marketing.

Article 50
(1) The marketing channels as referred to in Article 48 paragraph (1) may use long-distance communication media.

(2) Marketing of Insurance Products through long-distance communication media as referred to in paragraph (1) must provide information regarding the identity of the Insurance Company and Sharia Insurance Company, the Insurance Product offered, and the terms and conditions of the Insurance Policy.

(3) Marketing channels using long-distance communication media as referred to in paragraph (1), for PAYDI, must be followed by a direct face-to-face meeting or digital face-to-face meeting via video conference media.

(4) Digital face-to-face meetings via video conference media as referred to in paragraph (3) must be conducted with the following provisions:
a. stating full identity; b. showing identity documents as marketing personnel for insurance products;
c. ensuring the correspondence of the face and information of the prospective Policyholder, Insured, or Participant with the latest information from the prospective Policyholder, Insured, or Participant concerned; and
d. documentation in the form of video and/or audio recordings that must be verified, stored, and maintained in accordance with the policies of the Insurance Company or Sharia Insurance Company so that the documentation can be used as evidence in the event of a dispute.

Article 51
Insurance Companies and Sharia Insurance Companies that market Insurance Products through insurance agents as referred to in Article 48 paragraph (1) letter b must ensure that such Insurance Agents meet the provisions of legislation regarding insurance agents.

Article 52
(1) Marketing of Insurance Products through Bancassurance as referred to in Article 48 paragraph (1) letter c may be conducted with business models:
a. reference; b. distribution; and/or
c. product integration.

(2) Companies marketing Insurance Products through Bancassurance as referred to in paragraph (1) letters b and c must first obtain a Bancassurance approval letter from the Financial Services Authority.

Article 53
(1) Insurance Companies or Sharia Insurance Companies that market Insurance Products through entities other than banks as referred to in Article 48 paragraph (1) letter d with certain criteria must first obtain an approval letter from the Financial Services Authority.

(2) Certain criteria as referred to in paragraph (1) are determined by the Financial Services Authority.

(3) Further provisions regarding the marketing of Insurance Products through entities other than banks as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 54
(1) Insurance Companies and Sharia Insurance Companies that market Micro Insurance Products through marketing personnel as referred to in Article 48 paragraph (1) letter c must organize or hold training for the aforementioned marketing personnel.

(2) Training as referred to in paragraph (1) must at least cover:
a. training regarding Micro Insurance Products to be marketed; and b. training regarding basic insurance knowledge.

(3) Further provisions regarding the marketing of Micro Insurance Products through marketing personnel as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 55
In the event that the marketing of Insurance Products is conducted through marketing channels as referred to in Article 48 paragraph (1) letters b through e, Insurance Companies and Sharia Insurance Companies must:
a. ensure that the party conducting the marketing conveys accurate, clear, honest, and non-misleading information regarding the Insurance Product to prospective Policyholders, Insured, or Participants before the prospective Policyholder, Insured, or Participant decides to close insurance with the Insurance Company or Sharia Insurance Company; and b. be responsible for all actions of the party conducting the marketing related to the Insurance Products marketed.

Second Section
Administrative Sanctions

Article 56
(1) Violations of the provisions as referred to in Article 49, Article 50 paragraph (2), paragraph (3), paragraph (4), Article 51, Article 52 paragraph (2), Article 53 paragraph (1), Article 54 paragraph (1), and/or Article 55 are subject to administrative sanctions in the form of:
a. written warning; b. reduction of health level; and/or
c. prohibition to market Insurance Products or Insurance Products with Sharia Principles for specific business lines.

(2) Violations of the provisions as referred to in Article 52 paragraph (2) and Article 53 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of IDR 100,000,000.00 (one hundred million rupiah).

(3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically.

(4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Third Section
Re-evaluation of Key Parties

Article 57
In addition to imposing administrative sanctions as referred to in Article 56 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the key parties of the Insurance Company or Sharia Insurance Company.

CHAPTER V
DIGITAL IMPLEMENTATION OF INSURANCE PRODUCTS

First Section
Digital Implementation of Insurance Products

Article 58
(1) Insurance Companies or Sharia Insurance Companies may implement and market Insurance Products digitally, either independently or in cooperation with other parties who are partners of the Insurance Company or Sharia Insurance Company based on a cooperation agreement.

(2) Insurance Companies or Sharia Insurance Companies that implement and market Insurance Products digitally as referred to in paragraph (1) must fulfill the following provisions:
a. having a registration certificate of electronic system operators issued by the competent authority in accordance with legislation in the field of information and electronic transactions; b. having and applying policies, standards, and procedures for information technology risk management; and
c. fulfilling all requirements mandated by the Financial Services Authority and competent institutions in the context of electronic system implementation.

Article 59
(1) Insurance Companies or Sharia Insurance Companies that implement and market Insurance Products digitally through cooperation with other parties who are partners of the Insurance Company or Sharia Insurance Company must first obtain approval from the Financial Services Authority.

(2) The electronic system used for the digital implementation of Insurance Products as referred to in Article 58 paragraph (1) must contain information regarding the identity of the Insurance Company or Sharia Insurance Company, the Insurance Product offered, the terms and conditions of the Insurance Policy, and provide a summary of product and service information.

(3) In the event that marketing as referred to in Article 58 paragraph (1) uses the electronic system of another party, the electronic system of that other party must be connected to the electronic system of the Insurance Company or Sharia Insurance Company.

(4) Further provisions regarding the procedures for approval of cooperation between Insurance Companies or Sharia Insurance Companies with other parties who are partners of the Insurance Company or Sharia Insurance Company as referred to in paragraph (1) are determined by the Financial Services Authority.

Article 60
(1) Insurance Companies or Sharia Insurance Companies conducting digital implementation of Insurance Products must ensure that the marketed Insurance Products meet the following criteria:
a. using individual policies; and b. having a simple risk selection process.

(2) Insurance Companies or Sharia Insurance Companies conducting digital implementation of Insurance Products must conduct internal self-assessment regarding the suitability of the type and characteristics of the marketed Insurance Products with the criteria as referred to in paragraph (1).

Second Section
Administrative Sanctions

Article 61
(1) Violations of the provisions as referred to in Article 58 paragraph (2), Article 59 paragraph (1), paragraph (2), and/or Article 60 are subject to administrative sanctions in the form of:
a. written warning; b. reduction of health level; and/or
c. prohibition to market Insurance Products or Insurance Products with Sharia Principles for specific business lines.

(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been corrected, the Financial Services Authority issues a written warning sanction that ends automatically.

(3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Third Section
Re-evaluation of Key Parties

Article 62
In addition to imposing administrative sanctions as referred to in Article 61 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the key parties of the Insurance Company or Sharia Insurance Company.

CHAPTER VI
FULFILLMENT OF SHARIA PRINCIPLES

First Section
Fulfillment of Sharia Principles

Article 63
(1) Sharia Insurance Companies and the Sharia units of Insurance Companies must apply Sharia Principles in every implementation of Insurance Products.

(2) The fulfillment of the application of Sharia Principles as referred to in paragraph (1) must be supported by:
a. fatwa or statements of Sharia suitability from institutions having authority in determining fatwas in the Sharia field as a basis in the implementation of Insurance Products; and

b. opinion from the Sharia supervisory board regarding the use of specific contracts for business activities based on Sharia Principles.

(3) The opinion from the Sharia supervisory board of the Sharia Insurance Company or the Sharia unit of the Insurance Company as referred to in paragraph (2) letter b must at least:
a. Insurance Products must be based on fatwas from institutions having authority in determining fatwas in the Sharia field; b. the suitability of Insurance Products with fatwas or statements of Sharia suitability from institutions having authority in determining fatwas in the Sharia field must at least cover:

1. Insurance Policies;
2. the contracts used have been in accordance with the characteristics of the implementation of Insurance Products;
3. the objects and objectives of risk management;
4. policies and procedures for wealth management;
5. the suitability of the determination of Contributions with the contracts used; and/or
6. the termination of participation and the determination of costs in the termination of participation.

(4) Further provisions regarding the format of opinions from the Sharia supervisory board as referred to in paragraph (3) are determined by the Financial Services Authority.

Article 64
In the event that Insurance Products already owned by Sharia Insurance Companies or the Sharia units of Insurance Companies conflict with newly issued fatwas or statements of Sharia suitability from institutions having authority in determining fatwas in the Sharia field as referred to in Article 63 paragraph (2) letter a, Sharia Insurance Companies or the Sharia units of Insurance Companies must adjust the Insurance Products with such fatwas or statements of Sharia suitability within a maximum period of 12 (twelve) months from the determination of such fatwas or statements of Sharia suitability.

Second Section
Administrative Sanctions

Article 65
(1) Violations of the provisions as referred to in Article 63 paragraph (1) and/or Article 64 are subject to administrative sanctions in the form of:
a. written warning; b. reduction of health level; and/or

c. prohibition on marketing Insurance Products
or Insurance Products with Sharia Principles for specific business lines.
(2) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (3) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Third Section
Re-evaluation of Key Parties
Article 66
In addition to imposing administrative sanctions as referred to in Article 65 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation of the key parties of the Insurance Company or Sharia Insurance Company.

CHAPTER VII
INSURANCE PRODUCT MANAGEMENT

First Section
General
Article 67
Insurance Companies and Sharia Insurance Companies are required to have and apply guidelines for the development and monitoring of Insurance Products which at least contain:
a. governance of the implementation of Insurance Products; b. risk management;
c. internal control in the development and evaluation of Insurance Products; and
d. the responsibilities of each work unit or function in the management of Insurance Companies and Sharia Insurance Companies in the development and monitoring of Insurance Products.

Second Section
Development of Insurance Products
Article 68
(1) Insurance Companies and Sharia Insurance Companies are required to have a development and marketing plan for Insurance Products established by the board of directors or equivalent. (2) The Insurance Product development plan as referred to in paragraph (1) is part of the business plan of Insurance Companies and Sharia Insurance Companies.

(3) Provisions regarding the form, structure, and procedures for compiling the Insurance Product development plan as referred to in paragraph (1) are established by the Financial Services Authority.

Article 69
(1) In every development of Insurance Products as referred to in Article 32 paragraph (2) and Article 42 paragraph (1) letters a and b, Insurance Companies and Sharia Insurance Companies are required to first conduct an analysis or testing of the Insurance Products. (2) The analysis or testing of Insurance Products as referred to in paragraph (1) aims to determine the potential risk of loss to Insurance Companies and Sharia Insurance Companies, as well as Policyholders, Insureds, or Participants. (3) The analysis or testing of Insurance Products as referred to in paragraph (1) at least covers the aspects:
a. the alignment of the development of Insurance Products with the business plan of Insurance Companies or Sharia Insurance Companies; b. the potential impact on the performance and financial health of Insurance Companies or Sharia Insurance Companies;
c. the operational readiness of Insurance Companies or Sharia Insurance Companies, at least covering;

1. adequacy of risk selection procedures;

2. alignment of the determination of Premiums/Contributions with generally accepted practices and statutory regulations;

3. adequacy of reinsurance support;

4. adequacy of estimates or assumptions used by Insurance Companies or Sharia Insurance Companies regarding the size of the risk portfolio for Insurance Products to be marketed to meet the law of large numbers in insurance;

5. readiness of supporting information system infrastructure;

6. readiness of human resource competence and capacity; and

7. risk management related to the marketing and management of Insurance Products; and
   d. protection of prospective Policyholders, Insureds, or Participants, at least covering:

8. the alignment of the design of Insurance Products with the needs and characteristics of the target market;

9. the readiness to implement training for marketing personnel or other parties who will market Insurance Products and consumer education; and

10. the alignment of information to be conveyed in marketing and Insurance Policy provisions with statutory regulations in the field of insurance and consumer protection.
    (4) The results of the analysis or testing of Insurance Products as referred to in paragraph (3) must be submitted to the Insurance Product Development Committee as a basis for providing recommendations for the development of Insurance Products.

Third Section
Insurance Product Development Committee
Article 70
(1) Insurance Companies and Sharia Insurance Companies are required to have an Insurance Product Development Committee.
(2) The Insurance Product Development Committee as referred to in paragraph (1) at least consists of:
a. a director who oversees the Insurance Product development function as the main responsible party; b. an official responsible for the operational function;
c. an official responsible for the risk management function;
d. an official responsible for the marketing function; and e. the Company Actuary.

Article 71
(1) The Insurance Product Development Committee is responsible for conducting reviews and providing recommendations on:
a. the development of Insurance Products based on the results of analysis or testing as referred to in Article 69; b. the classification of Insurance Products as Insurance Products that:

1. receive approval from the Financial Services Authority as referred to in Article 32 paragraph (1); or
2. are reported to the Financial Services Authority as referred to in Article 42 paragraph (2); and
   c. the marketing of Insurance Products, consisting of:
3. continuing the marketing of Insurance Products;
4. modifying Insurance Products; and/or
5. ceasing the marketing of Insurance Products.
   (2) The provision of recommendations for changes to Insurance Products as referred to in paragraph (1) letter c is based on the results of the evaluation of the performance of each Insurance Product conducted by the Company Actuary and/or other members of the Insurance Product Development Committee.

Fourth Section
Monitoring of Insurance Product Performance
Article 72
(1) Insurance Companies and Sharia Insurance Companies are required to monitor the performance of each Insurance Product by grouping each business line, Insurance Product, and marketing channel for Insurance Products. (2) Monitoring of the performance of each Insurance Product as referred to in paragraph (1) is conducted by evaluating at least:
a. the alignment of the risk and cost assumptions used in determining the Premium/Contribution rates for Insurance Products with the realized risk and cost levels; and b. the impact on the profitability of the Insurance Products in question. (3) Monitoring of the performance of each Insurance Product as referred to in paragraph (2) is conducted periodically at least once (1) in one (1) year by the Company Actuary in accordance with the standards of practice and code of ethics issued by the Indonesian Actuarial Association. (4) Monitoring of the performance of each Insurance Product as referred to in paragraph (1) may involve all functions within Insurance Companies and Sharia Insurance Companies.

Fifth Section
Cessation of Insurance Products
Article 73
(1) The cessation of Insurance Products is conducted based on:
a. the initiative of the respective Insurance Company and Sharia Insurance Company; or b. an order from the Financial Services Authority.
(2) The order from the Financial Services Authority as referred to in paragraph (1) letter b is given by considering:
a. the results of the Financial Services Authority's evaluation, where the implementation of Insurance Products is assessed or has the potential to:

1. cause material and/or significant losses to the financial condition of Insurance Companies or Sharia Insurance Companies;
2. significantly increase the legal or reputational risk of Insurance Companies or Sharia Insurance Companies due to complaints or lawsuits from customers; and/or
3. have a negative impact on financial system stability;

b. Insurance Companies and Sharia Insurance Companies do not apply adequate risk management for the Insurance Products implemented; and/or
c. other conditions.
(3) The cessation of Insurance Products based on the order of the Financial Services Authority as referred to in paragraph (1) letter b may be temporary or permanent based on the assessment of the Financial Services Authority.

Article 74
Insurance Companies and Sharia Insurance Companies ordered by the Financial Services Authority to cease Insurance Products as referred to in Article 73 paragraph (1) letter b are required to:
a. cease the offering, marketing, and/or closing of new coverage/participation for Insurance Products; b. convey information to Policyholders, Insureds, or Participants regarding the cessation of Insurance Products;
c. submit an action plan to the Financial Services Authority regarding the cessation of Insurance Products at the latest 1 (one) month since the Insurance Company or Sharia Insurance Company was ordered to cease Insurance Products; and
d. implement the action plan.

Article 75
The cessation of Insurance Products as referred to in Article 73 and Article 74 is prohibited from reducing the rights of Policyholders, Insureds, or Participants.

Article 76
(1) Insurance Companies and Sharia Insurance Companies are required to report the cessation of Insurance Products as referred to in Article 73 paragraph (1) to the Financial Services Authority at the latest 10 (ten) working days since the cessation of Insurance Products. (2) The reporting of the cessation of Insurance Products as referred to in paragraph (1) must be submitted by the director of the Insurance Company and Sharia Insurance Company or equivalent, accompanied by:
a. an explanation regarding the reasons for ceasing the marketing of Insurance Products; and b. data on active Insurance Policies.

Article 77
Further provisions regarding the procedures, forms, and formats for reporting the cessation of Insurance Products as referred to in Article 76 are established by the Financial Services Authority.

Sixth Section
Administrative Sanctions
Article 78
(1) Violations of the provisions as referred to in Article 67, Article 68 paragraph (1), Article 69 paragraph (1), paragraph (4), Article 70 paragraph (1), Article 72 paragraph (1), Article 74, Article 75, and/or Article 76 paragraph (1) are subject to administrative sanctions in the form of:
a. written warning; b. downgrade of health rating; and/or
c. prohibition on marketing Insurance Products or Insurance Products with Sharia Principles for specific business lines.
(2) Violations of the provisions as referred to in Article 76 paragraph (1) are subject to additional administrative sanctions in the form of an administrative fine of Rp500,000.00 (five hundred thousand rupiah) per day of delay and at most Rp100,000,000.00 (one hundred million rupiah). (3) In the event of a violation of the provisions as referred to in paragraph (1) but the violation has been rectified, the Financial Services Authority provides a written warning sanction that ends automatically. (4) In the event that the violation of the provisions as referred to in paragraph (1) has been fulfilled, the Financial Services Authority revokes the written warning sanction.

Seventh Section
Re-evaluation for Key Parties
Article 79
In addition to imposing administrative sanctions as referred to in Article 78 paragraph (1), the Financial Services Authority is authorized to conduct a re-evaluation for the key parties of Insurance Companies or Sharia Insurance Companies.

CHAPTER VIII
OTHER PROVISIONS
Article 80
The Financial Services Authority, based on certain considerations, may provide approvals or policies that differ from this Financial Services Authority Regulation.

CHAPTER IX
TRANSITIONAL PROVISIONS
Article 81
(1) Approval letters or records for Insurance Products that have been issued by the Financial Services Authority before this Financial Services Authority Regulation comes into force are declared to remain valid. (2) The process of reporting Insurance Products that has not been completed at the time this Financial Services Authority Regulation comes into force is subject to this Financial Services Authority Regulation. (3) Administrative sanctions that have been imposed on Insurance Companies and Sharia Insurance Companies based on Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products are declared to remain valid insofar as they do not conflict with this Financial Services Authority Regulation. (4) Insurance Companies and Sharia Insurance Companies that have not been able to overcome the causes of the imposition of administrative sanctions as referred to in paragraph (3) are subject to further administrative sanctions in accordance with this Financial Services Authority Regulation.

CHAPTER X
CLOSING PROVISIONS
Article 82
The implementation provisions 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) are declared to remain valid insofar as they do not conflict with this Financial Services Authority Regulation.

Article 83
At the time this Financial Services Authority Regulation comes into force:
a. 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 b. Article 50 of Financial Services Authority Regulation Number 73/POJK.05/2016 concerning Good Corporate Governance for Insurance Companies (State Gazette of the Republic of Indonesia Year 2016 Number 306, Supplement to the State Gazette of the Republic of Indonesia Number 5996), are revoked and declared invalid.

Article 84
This Financial Services Authority Regulation comes into force 6 (six) months from the date of its promulgation.

This copy is in accordance with the original
Director of Legal Development
Legal Department
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 Gazette of the Republic of Indonesia.

Established in Jakarta on 25 April 2024
CHAIRMAN OF THE COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA,
MAHENDRA SIREGAR

Promulgated in Jakarta on 29 April 2024
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA,
YASONNA H. LAOLY

STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2024 NUMBER 10/OJK signed

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 8 OF 2024
CONCERNING
INSURANCE PRODUCTS AND MARKETING CHANNELS FOR INSURANCE PRODUCTS

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 areas in the field of insurance include the expansion of the scope of business, the use of electronic or digital Insurance Policies, and more careful governance of Premium/Contribution calculations, which are expected to support and create a healthy insurance industry ecosystem with strong competitiveness. The expansion of the scope of business of the insurance industry in Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector includes the provision of benefits related to credit/financing activities between creditors and debtors as well as the provision of suretyship products. This strengthening of the scope of business has been followed up by the issuance of Financial Services Authority Regulation Number 20 of 2023 concerning Insurance Products Related to Sharia Credit or Financing and Suretyship Products or Sharia Suretyship Products. Therefore, the regulation of the scope of business of the insurance industry in this Financial Services Authority Regulation needs to be harmonized with Financial Services Authority Regulation Number 20 of 2023, which among other things provides a legal umbrella for Sharia insurance actors to implement insurance products related to Sharia financing and Sharia suretyship products. With the development of technology in the financial services sector, the issuance of electronic or digital Insurance Policies has become a need and convenience for industry players. The use of electronic or digital Insurance Policies can increase the effectiveness and efficiency of operational and business activities as well as the quality of service to Policyholders, Insureds, or Participants. Through this Financial Services Authority Regulation, provisions regarding the use of electronic or digital Insurance Policies are regulated more clearly, thereby providing legal certainty for both insurance industry players and Policyholders, Insureds, or Participants. In order to fulfill Article 11 paragraph (4) of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector, it is necessary to improve regulations regarding the application of more careful governance of Premium/Contribution calculations by Insurance Companies and Sharia Insurance Companies. These provisions are improved in order to balance the fulfillment of the functions and duties of the Financial Services Authority as a prudential supervisor of the insurance industry and a protector of consumers in the financial services sector. With these regulations, it is expected that Insurance Companies and Sharia Insurance Companies can ensure that the Premiums/Contributions received can be managed well so as to meet all obligations to Policyholders, Insureds, or Participants. In addition,
improvements to the provisions are also made in response to the development of diverse and dynamic Insurance Products and marketing of Insurance Products in the insurance market, so that it is necessary to simplify the approval and/or reporting process for insurance products while still prioritizing prudential aspects and market conduct, including by strengthening the role of the Insurance Product Development Committee and the obligation of companies to conduct analysis or testing of Insurance Products before marketing Insurance Products, as well as the obligation of companies to conduct evaluation monitoring on the performance of each Insurance Product that has been marketed. This Financial Services Authority Regulation is an improvement of Financial Services Authority Regulation Number 23/POJK.05/2015 concerning Insurance Products and Marketing of Insurance Products. The improvements made include among other things the types and criteria of Insurance Products, strengthening of PAYDI provisions, Insurance Policy clauses, mechanisms for calculating and determining Premiums/Contributions, mechanisms for approval and reporting of Insurance Products, implementation of Insurance Products digitally, fulfillment of Sharia Principles, analysis, monitoring of Insurance Product performance, Insurance Product Development Committee, and cessation of Insurance Products.

II. ARTICLE BY ARTICLE
Article 1
Clearly sufficient.

Article 2
Paragraph (1)
Letter a
Clearly sufficient.
Letter b
Examples of programs that promise protection against 1 (one) type or more risks related to the death and life of the Insured/Participant are dual-purpose insurance and dual-purpose Sharia insurance. Letter c Clearly sufficient. Letter d Clearly sufficient. Paragraph (2) Clearly sufficient.

Article 3
Letter a
Clearly sufficient.
Letter b
What is meant by "sufficient level" is:

1. not too low so that it is proportional to the benefits agreed upon in the relevant Insurance Policy;
2. the application of Premium/Contribution levels sustainably will not endanger the solvency level of Insurance Companies and Sharia Insurance Companies; and
3. the application of Premium/Contribution levels sustainably can maintain a healthy competitive climate and does not cause a war of Premium/Contribution rates.
   The Premium/Contribution level is assessed as excessive if it is so high that it is very disproportionate to the benefits agreed upon in the relevant Insurance Policy and disproportionate to the risks covered in the relevant Insurance Policy. The application of Premium/Contribution levels is assessed as discriminatory if Insureds/Participants with the same scope of coverage and with the same type and level of risk are charged different Premium/Contribution levels. Letter c Number 1 Clearly sufficient. Number 2 Words, phrases, or sentences that can complicate matters include among other things "the company may request additional relevant documents" for Micro Insurance Products.

Article 4
Clearly sufficient.

Article 5
Paragraph (1)
Examples of Joint Insurance Products:
Product of consortium of state-owned asset insurance, consortium of ship dismantling insurance, or Personal Accident Plus (PA Plus) Product where the personal accident coverage is implemented by a general insurance company and the natural death coverage is implemented by a life insurance company. Paragraph (2) Clearly sufficient. Paragraph (3) What is meant by "joint coverage" is Insurance Products that are actually designed to be marketed by 1 (one) Insurance Company or Sharia Insurance Company, but on a case-by-case basis, the coverage of such Insurance Products is carried out by more than 1 (one) Insurance Company or Sharia Insurance Company due to capacity issues. Examples of joint coverage:
Coverage of property insurance with the object of coverage being a factory insured by more than 1 (one) general insurance company.

Article 6
Paragraph (1)
Clearly sufficient.
Paragraph (2)
Letter a
Clearly sufficient.
Letter b
Clearly sufficient.
Letter c
Clearly sufficient.
Letter d
Joint Insurance Products with insurance benefit types related to credit that cover risks of personal accident, termination of employment, and death, then the general insurance company or general Sharia insurance company can only cover the risks of personal accident insurance and termination of employment insurance. Meanwhile, the life insurance company or life Sharia insurance company can only cover life insurance and death risks in accordance with the scope of business of each Insurance Company or Sharia Insurance Company. Example of a larger portion, namely in the implementation of Joint Insurance Products with 3 (three) members of Insurance Companies or Sharia Insurance Companies as follows:

1. general insurance company A covers 30% (thirty percent) of the risk portion;

2. general insurance company B covers 25% (twenty-five percent) of the risk portion; and

3. life insurance company C covers 45% (forty-five percent) of the risk portion.
   In the implementation of such Joint Insurance Products, life insurance company C is appointed and responsible as the chairman because it covers the largest portion of coverage.
   Letter e
   Clearly sufficient.
   Letter f
   Clearly sufficient.
   Letter g
   Clearly sufficient.
   Letter h
   Clearly sufficient.
   Paragraph (3)
   Example of a joint agreement is that claim settlement is pursued through mutual deliberation. In the event that an agreement cannot be reached through mutual deliberation, the agreement is taken based on the majority vote by considering the risk portion covered by each Insurance Company or Sharia Insurance Company. Paragraph (4) Letter a Clearly sufficient. Letter b Clearly sufficient. Letter c Example in the implementation of Joint Insurance Products with 3 (three) members of Insurance Companies or Sharia Insurance Companies as follows:

4. General Insurance Company A covers personal accident risk;

5. General Insurance Company B covers health risk; and

6. Life Insurance Company C covers life insurance risk (natural death).
   In the implementation of such Joint Insurance Products, if Life Insurance Company C terminates the cooperation, the implementation of the Joint Insurance Product cannot continue because General Insurance Company A and General Insurance Company B cannot cover life insurance risk (natural death).

Article 7
Paragraph (1)
Letter a
The term "simple" refers to Micro Insurance Products providing basic protection benefits for risks commonly faced by low-income communities. Furthermore, the Insurance Policy for Micro Insurance Products must use simple language so that it is easily understood by all members of society.

Letter b
The term "accessible" means that Micro Insurance Products are easily obtained in the general community, especially low-income communities, such as at post offices, pawnshop outlets, minimarkets, supermarkets, and financial institutions other than Insurance Companies and Sharia Insurance Companies.

Letter c
The term "economical" means that Micro Insurance Products have premiums/contributions that are affordable for low-income communities with optimal insurance benefits. Therefore, the marketing costs and operational costs of Micro Insurance Products must be very efficient.

Letter d
The term "immediate" means that the claim payment process for Micro Insurance Products is carried out immediately after the risk occurs, much faster than the claim payment process for other Insurance Products. This is because low-income communities usually do not have sufficient savings and very much need funds to face the financial impact of the disaster that occurs.

Paragraph (2)
Is sufficiently clear.

Article 8
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Complex general insurance or Sharia general insurance business lines include, among others, hull insurance business lines, engineering insurance business lines, aviation insurance business lines, and oil and gas insurance business lines.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 9
Interested relationships include, among others, financial relationships, relationships related to legal liability, family relationships, and/or membership relationships.

Article 10
Provisions related to annuities in the Financial Services Authority Regulation regarding the implementation of pension funds, for example, Insurance Companies must not provide Annuity Insurance Products for pension programs that offer policy surrenders for less than a benefit period of 10 (ten) years.

Article 11
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Examples of words synonymous with insurance include "assurance", "insurance", and "protection".

Letter b
Is sufficiently clear.

Letter c
Naming that causes interpretation that the product is not an Insurance Product includes, among others, savings and investment.

Letter d
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 12
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
The grace period is known by the term grace period.

Letter e
The equivalent exchange rate used must produce a value equal to the amount of foreign currency that should be received by the payment recipient.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
The period during which the Insurance Company or Sharia Insurance Company cannot review the validity of the insurance contract is known by the term incontestable period.

Letter i
Is sufficiently clear.

Letter j
The calculation method for the cash value amount that has a large cash value benefit, the amount of which is not guaranteed in the Insurance Policy, refers to the sum of assets of all sub-funds owned by the Policyholder, both those stated in units and those not in units, based on agreements between the Insurance Company or Sharia Insurance Company and the custodian bank.

Letter k
Is sufficiently clear.

Letter l
Is sufficiently clear.

Letter m
Is sufficiently clear.

Letter n
Is sufficiently clear.

Letter o
The term "out-of-court dispute resolution mechanism" refers to the Alternative Dispute Resolution Institution for the Financial Services Sector (LAPS SJK).

Letter p
Is sufficiently clear.

Letter q
Is sufficiently clear.

Letter r
The period for reviewing the policy is known by the term free look period.

Letter s
The waiting period is known by the term waiting period.

Article 13
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Contributions allocated into the Participant's investment fund only apply to:

1. PAYDI with Sharia Principles whose investment allocation choices depend on the Participant; or
2. Endowment Insurance Products with Sharia Principles.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Letter f
Is sufficiently clear.

Letter g
Is sufficiently clear.

Letter h
Is sufficiently clear.

Article 14
Is sufficiently clear.

Article 15
Is sufficiently clear.

Article 16
Is sufficiently clear.

Article 17
Is sufficiently clear.

Article 18
Is sufficiently clear.

Article 19
Is sufficiently clear.

Article 20
Paragraph (1)
Insurance Policies include the Insurance Policy Summary.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Paragraph (5)
Is sufficiently clear.

Article 21
Paragraph (1)
Letter a
The list of Insureds/Participants includes additional Insureds/Participants during the period the master Insurance Policy is valid.

Letter b
Is sufficiently clear.

Paragraph (2)
Interested relationships include, among others, financial relationships, relationships related to legal liability, family relationships, and/or membership relationships. These provisions serve as one of the applications of the insurable interest principle, which aims to ensure that Insurance Companies and Sharia Insurance Companies are more selective and targeted in marketing Group Insurance Products, so that violations of the application of insurable interest do not occur in the implementation of Group Insurance Products.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Article 22
Is sufficiently clear.

Article 23
Is sufficiently clear.

Article 24
Is sufficiently clear.

Article 25
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
The term "reasonable assumptions" refers to assumptions used by Insurance Companies and Sharia Insurance Companies in identifying and grouping risk levels and deciding on terms and conditions for prospective Policyholders, Insureds, or Participants in a reasonable manner.

Letter b
Is sufficiently clear.

Article 26
Paragraph (1)
Letter a
The calculation of Pure Premium/Contribution is based on risk profile and loss data of the relevant insurance type for at least the last 5 (five) years, using data from internal general insurance companies and Sharia general insurance companies or external from third parties.

Letter b
The term "other general costs" refers to costs commonly charged in business acquisition. Examples include marketing costs.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Accurate information from trusted sources includes, among others, information from reinsurance assessments.

Paragraph (3)
The term "after having sufficient risk profile and loss data" means after the general insurance company and Sharia general insurance company have marketed the relevant Insurance Product and have 5 (five) years of risk profile and loss data.

Paragraph (4)
Letter a
Risk profiles, mortality tables, or morbidity tables, including tariffs for Reinsurance Premium/Contribution.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Paragraph (5)
Letter a
Risk profiles, mortality tables, or morbidity tables, including tariffs for Reinsurance Premium/Contribution.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Article 27
Paragraph (1)
Risk assessment and selection are based on, among others, assessments of the risk level of the insured object.

Paragraph (2)
Is sufficiently clear.

Article 28
Is sufficiently clear.

Article 29
Is sufficiently clear.

Article 30
Is sufficiently clear.

Article 31
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Letter a
The Insurance Product development plan includes the development and marketing plan for the Insurance Product.

Letter b
The term "self-assessment" refers to Insurance Companies and Sharia Insurance Companies conducting mapping or assessments regarding the category of Insurance Product implementation, which includes, among others:

1. selection and determination of characteristics of Insurance Product implementation and types of Insurance Products;
2. pairing changes or adjustments to Insurance Product design in cases where marketed Insurance Products have undergone changes; and
3. recommendations based on the results of the assessment.

These provisions are linked to the obligation of Insurance Companies and Sharia Insurance Companies to submit reports on every implementation of Insurance Products. Such reporting includes:

1. reporting conducted to obtain approval for the implementation of Insurance Products;
2. reporting on the implementation of Insurance Products but not for the purpose of obtaining approval;
3. reporting in the event of changes or adjustments to marketed Insurance Products; and/or
4. reporting in the event of the implementation of Insurance Products digitally.

The results of these self-assessments will serve as one of the considerations for the Financial Services Authority to assess the application of risk management by Insurance Companies and Sharia Insurance Companies in the implementation of Insurance Products.

Letter c
Is sufficiently clear.

Paragraph (4)
Letter a
Examples of the general description of each Insurance Product to be developed are:

1. the business line of the Insurance Product to be marketed/developed;
2. the type of Insurance Product (including Insurance Products marketed to individuals or Group Insurance Products);
3. marketing channels and business models in the marketing of Insurance Products;
4. the purpose of developing the Insurance Product;
5. the readiness of supporting information system infrastructure; and
6. the readiness of competence and human resource capacity.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Paragraph (5)
Examples of the implementation of Insurance Products for the implementation of government programs include, among others, the Indonesian labor insurance program and state-owned property insurance. Implementation of Insurance Products that is incidental means that the marketing of Insurance Products only occurs or is done on specific occasions or times (occasionally), not marketed permanently or routinely. Examples include: Insurance Products that cover pandemic/epidemic risks, and Insurance Products for event implementation (event insurance) in the organization of matches between countries or music concert performances.

Paragraph (6)
Is sufficiently clear.

Paragraph (7)
Is sufficiently clear.

Article 32
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Letter a
Insurance Products that have savings elements or cash value include, among others, dual-purpose Insurance Products, PAYDI, and Annuity Insurance Products.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Article 33
Is sufficiently clear.

Article 34
Is sufficiently clear.

Article 35
Is sufficiently clear.

Article 36
Is sufficiently clear.

Article 37
Is sufficiently clear.

Article 38
Is sufficiently clear.

Article 39
Is sufficiently clear.

Article 40
Paragraph (1)
Provisions of legislation include, among others, minimum equity requirements for Insurance Companies marketing Credit Insurance Products in accordance with the Financial Services Authority Regulation regarding credit insurance products.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Article 41
Is sufficiently clear.

Article 42
Is sufficiently clear.

Article 43
Is sufficiently clear.

Article 44
Is sufficiently clear.

Article 45
Is sufficiently clear.

Article 46
Is sufficiently clear.

Article 47
Is sufficiently clear.

Article 48
Paragraph (1)
Letter a
Direct marketing is carried out directly, among others, through electronic media and/or online platforms owned by the Insurance Company or Sharia Insurance Company.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Examples of business entities other than banks include financing companies, microfinance institutions, PT. Pos Indonesia, and minimarkets/supermarkets. Business entities other than banks that are not included in this regulation include insurance companies. Insurance Companies or Sharia Insurance Companies, in addition to marketing Insurance Products through marketing channels, can also obtain business from insurance brokerage companies.

Letter e
Marketing personnel specifically for Micro Insurance Products include, among others, bank agents of implementing banks.

Paragraph (2)
Is sufficiently clear.

Article 49
Is sufficiently clear.

Article 50
Paragraph (1)
Long-distance communication media include, among others, letters, telephone (telemarketing), internet, television, radio, and short message services (SMS).

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Letter a
Is sufficiently clear.

Letter b
The term "Insurance Product marketing personnel" refers to employees of Insurance Companies or Sharia Insurance Companies, agents, and bank employees.

Letter c
Is sufficiently clear.

Letter d
Documentation is carried out for the entire process of explaining Insurance Products.

Article 51
Is sufficiently clear.

Article 52
Is sufficiently clear.

Article 53
Is sufficiently clear.

Article 54
Is sufficiently clear.

Article 55
Is sufficiently clear.

Article 56
Is sufficiently clear.

Article 57
Is sufficiently clear.

Article 58
Paragraph (1)
The term "implementing Insurance Products digitally" refers to activities related to Insurance Products by Insurance Companies or Sharia Insurance Companies that use electronic system facilities from the product selection process, risk selection, Premium/Contribution payment, and issuance of Insurance Policies, which are carried out digitally without requiring face-to-face processes. The term "other parties" refers to banks (bancassurance) and business entities other than banks that implement Insurance Products digitally.

Paragraph (2)
Is sufficiently clear.

Article 59
Paragraph (1)
The term "marketing Insurance Products digitally" means that the process from offering Insurance Products to closing is carried out digitally through applications or websites.

Paragraph (2)
Product and service information summary is known as RIPLAY.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Article 60
Paragraph (1)
Letter a
The term "individual policy" refers to policies that are not Group Insurance Products and not corporate products.

Letter b
Types of risk selection processes that can be used include, among others, guaranteed acceptance, non-guaranteed acceptance, and simplified underwriting for non-micro Insurance Products, and Guaranteed Issuance Offer (GIO) or Simplified Issue Offer (SIO) for Micro Insurance Products.

Paragraph (2)
Is sufficiently clear.

Article 61
Is sufficiently clear.

Article 62
Is sufficiently clear.

Article 63
Is sufficiently clear.

Article 64
The term "new fatwa or statement of Sharia compliance" refers to fatwas or statements of Sharia compliance issued after the Insurance Product has been marketed.

Article 65
Is sufficiently clear.

Article 66
Is sufficiently clear.

Article 67
Is sufficiently clear.

Article 68
Is sufficiently clear.

Article 69
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Is sufficiently clear.

Paragraph (3)
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Number 1
Insurance Product design includes the specification of the business model and the marketing method of the Insurance Product.

Number 2
Is sufficiently clear.

Number 3
Information to be conveyed in marketing covers all information contained in the media used in marketing. Examples include brochures, product information summaries, advertisements, information in applications, and others.

Paragraph (4)
Is sufficiently clear.

Article 70
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Is sufficiently clear.

Letter b
Operational functions can include, among others, functions overseeing underwriting, policy ownership services (customer service), claims, Insurance Product marketing, and/or investment management.

Letter c
Is sufficiently clear.

Letter d
Is sufficiently clear.

Letter e
Is sufficiently clear.

Article 71
Is sufficiently clear.

Article 72
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Assumptions of risk levels and costs include, among others, mortality assumptions, morbidity assumptions, persistency assumptions, policy surrender assumptions, lapse assumptions, acquisition costs, and operational costs.

Letter b
Impact on profitability includes, among others, impact on value of new business and inforce business.

Paragraph (3)
Is sufficiently clear.

Paragraph (4)
Is sufficiently clear.

Article 73
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Number 1
Conditions that have the potential to cause material and/or significant losses to the financial condition of Insurance Companies and Sharia Insurance Companies include, among others, the implementation of Insurance Products resulting in high loss ratios.

Number 2
Is sufficiently clear.

Number 3
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Examples of other conditions include considerations of the potential emergence of obstacles in the supervision process by the Financial Services Authority.

Paragraph (3)
Is sufficiently clear.

Article 74
Letter a
Is sufficiently clear.

Letter b
Is sufficiently clear.

Letter c
Is sufficiently clear.

Letter d
Action plans include, among others:

1. settlement of obligations to Policyholders; and
2. refinement and improvement of Insurance Products.

Article 75
Is sufficiently clear.

Article 76
Paragraph (1)
Is sufficiently clear.

Paragraph (2)
Letter a
Explanation regarding the reasons for discontinuing the marketing of Insurance Products applies to discontinuation initiated by the relevant Insurance Company and Sharia Insurance Company.

Letter b
Is sufficiently clear.

Article 77
Is sufficiently clear.

Article 78
Is sufficiently clear.

Article 79
Is sufficiently clear.

Article 80
Certain considerations include, among others, in order to provide support for government programs, extraordinary events, or the implementation of protection for Policyholders, Insureds, or Participants, while still paying attention to the principle of prudence.

Article 81
Is sufficiently clear.

Article 82
Is sufficiently clear.

Article 83
Is sufficiently clear.

Article 84
Is sufficiently clear.

SUPPLEMENT TO THE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 78/OJK