Update on Insurance Companies' Periodic Reports
As you may be aware, the Financial Services Authority of the Republic of Indonesia (OJK) issued Circular Letter No. 55/POJK.55/2017 on Periodic Reports of Insurance Companies, Reinsurance Companies, Insurance Brokerage Companies, Reinsurance Brokerage Companies and Loss Adjuster Companies (CL 55/2017) on 31 July 2017. The regulation became effective on the same date.
CL 55/2017 applies to all reports that must be submitted by insurance companies, reinsurance companies, insurance brokerage companies, reinsurance brokerage companies, sharia units within insurance/reinsurance companies and loss adjuster companies.
We published our client alert in relation to the issuance of CL 55/2017 in August 2017. Please see our client alert here. CL 55/2017 regulates that the periodic reports consist of:
- monthly reports
- quarterly reports
- semester reports
- annual reports
- other reports (eg, business plan, company plan, reinsurance program plan and financial integrated management plan (if any) as required).
To implement CL 55/2017, OJK issued the following circular letters:
- No. 2/SEOJK.05/2018 on Form and Structure of Periodic Reports for Sharia Insurance Companies, Sharia Reinsurance Companies, and Sharia Units (Letter No. 2) dated 24 January 2018. Letter No. 2 revokes circular letter No. 4/SEOJK.05/2013 on Monthly Reports for Insurance Companies and Reinsurance Companies which run their business based on Sharia Principles and Sharia Units within Insurance Companies and Reinsurance Companies.
- No. 3/SEOJK.05/2018 on Form and Structures of Periodic Reports for Insurance Brokerage Companies, Reinsurance Brokerage Companies and Loss Adjuster Companies (Letter No. 3) dated 24 January 2018. Letter No. 3 revokes circular letter No. 18/SEOJK.05/2014 on Good Corporate Governance for Insurance Brokerage Companies, Reinsurance Brokerage Companies, and Loss Adjuster Companies.
(Letter No. 2 and Letter No. 3 are referred to as the Circular Letters).
The Circular Letters became effective on 24 January 2018.
The key difference between the Circular Letters and the previous guidelines is that the OJK now provides comprehensive forms for monthly reports, quarterly reports, semester reports and annual reports. The previous guidelines provided forms for monthly reports only. So it is now easier for insurance companies to refer to one regulation to check various reporting forms rather than checking various regulations to check specific reporting forms.
What the Circular Letters say
Letter No. 2
Letter No. 2 specifies the forms of financial monthly reports, quarterly reports, and annual reports to be used by the following companies:
- Sharia general insurance companies and sharia units within general insurance companies use the I A form
- Sharia reinsurance companies and sharia units within reinsurance companies use the I B form
- Sharia life insurance companies and sharia units within life insurance companies use the I C form
The management annual reports for sharia insurance companies, sharia reinsurance companies and sharia units use the I D form.
The following are the details for each of the other reports for sharia insurance companies, sharia reinsurance companies, and sharia units:
- The corporate plan report uses the II A form
- The business plan report uses the II B form
- The reinsurance program/automatic retrocession (retrosesi otomatis) report uses the II C form
- The consumer complaint report and its settlement report uses the II D form
- The self assessment report for the implementation of the integration governance for financial conglomerates uses the II E form
- the annual report for the implementation of the integration governance for financial conglomerates uses the II F form
- The integrated risk profile report uses the II G form
- The integrated capital adequacy uses the II H form
- The update of activity data report and its realization use the II I form
- The abridged version of the quarterly and/or the annual financial report use the II J form
Letter No. 3
Letter No. 3 also specifies the forms of the financial semester report and the annual report to be used by the following companies:
- Insurance brokerage companies use the I A form
- Reinsurance brokerage companies use the I B form
- Loss adjuster companies use the I C form
Meanwhile, the management annual report for insurance brokerage companies, reinsurance brokerage companies, and loss adjuster companies use the forms stated in the appendix II of Letter No. 3.
Submission Procedures to OJK
The periodic reports required by the Circular Letters must be submitted online through the OJK's (online) data communication line system by sharia insurance companies, sharia reinsurance companies, sharia units within insurance/reinsurance companies, insurance brokerage companies, reinsurance brokerage companies, and loss adjuster companies (Companies or Company). If the system is unavailable, the Companies must submit the periodic reports through an email to the OJK.
The OJK will inform the Companies of its email address in writing at least 14 working days before the deadline for the submission of the periodic reports. The Companies must also provide their email addresses in writing to the OJK.
If the Companies cannot access the OJK's data communication line system or send the reports to the OJK's email address, the Companies may submit (offline) the periodic reports signed by the board of directors of the Companies to the OJK's address. The Companies can submit the reports directly to the OJK or use a courier company.
The OJK's address (new office) is:
Otoritas Jasa Keuangan
Gedung Wisma Mulia 2, 15th floor
Jalan Jenderal Gatot Subroto No. 42, Jakarta 12710
attention to: Director of Sharia Non-Bank Financial Industry (Industri Keuangan Non-Bank Syariah)
Reports will be deemed as submitted if:
- for online submissions:
- a Company has received a receipt issued by the OJK data communication line system; or
- a Company has received an email receipt stating that the periodic reports have been sent to the OJK's email address (if the OJK data communication line system cannot be accessed, and the Company uses this approach); or
- for offline submissions:
- a Company has received a receipt from the OJK, if the Company delivers directly the periodic reports to the OJK; or
- a Company has received a delivery receipt from a courier company, if the Company uses a courier to deliver its periodic reports to the OJK.