We set out below several key insurance regulatory updates:
The Financial Services Authority ("OJK") issues a regulation on fit and proper test reassessment
On 22 July 2019, the OJK issued OJK Circular Letter No. 15/SEOJK.05/2019 on Fit and Proper Test Reassessments for Primary Parties of Financial Services Institutions ("OJK Circular Letter No. 15"). OJK Circular Letter 15 became effective on 22 July 2019.
OJK Circular Letter No. 15 is the implementing regulation of OJK Regulation No. 34/POJK.03/2018 on Fit and Proper Test Reassessments for Primary Parties of Financial Services Institutions ("OJK Regulation 34/2018").
OJK Circular Letter No. 15 provides several real life examples of actions that would trigger the reassessment of the integrity, reputation, competency and financial capability of a primary party.
Some of the examples set out under OJK Circular Letter No. 15 are as follows:
- A controller of an insurance company ordering the insurance company's actuary to use an unreasonable actuarial assumption in calculating the insurance company's actuarial calculation
- A finance director of an insurance company reporting a fictitious transaction in the insurance company's books
Insurance companies and their controllers should review current practices and operations in the light of OJK Circular Letter No. 15.