Indonesia Financial Sector Assessment Program : Insurance Core Principles
This assessment of insurance regulation in Indonesia was carried out as part of the 2016-17 Financial Sector Assessment Program (FSAP). The Indonesian insurance sector is still vulnerable to a number of material risks. A number of insurers have fai...
| Main Authors: | , |
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/610191519140446565/Indonesia-Financial-sector-assessment-program-detailed-assessment-of-observance-insurance-core-principles http://hdl.handle.net/10986/29386 |
| Summary: | This assessment of insurance regulation
in Indonesia was carried out as part of the 2016-17
Financial Sector Assessment Program (FSAP). The Indonesian
insurance sector is still vulnerable to a number of material
risks. A number of insurers have failed in the last 10
years. After its establishment, OJK has taken prompt action
in order to reduce the loss to policyholders by taking
strong actions against four insurers with material deficits.
OJK has monitored the capital adequacy of insurers through
its risk based supervision scheme. During the recent market
turmoil in 2015, the solvency requirement was relaxed for
nine months while introducing the temporary suspension of
mark to market valuation rules. The Indonesian insurance
industry is exposed to significant catastrophic risk with
domestic concentrations through mandatory reinsurance
programs. The low interest rate environment in advanced
economies is also affecting the life insurance sector, as
insurers have some underwriting denominated in USD. |
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