Indonesia: Financial Sector Assessment Program-Detailed Assessment of Observance

Indonesia: Financial Sector Assessment Program-Detailed Assessment of Observance—Insurance Core Principles

March 12, 2018

Preview Citation

Format: Chicago

Indonesia: Financial Sector Assessment Program-Detailed Assessment of Observance—Insurance Core Principles, (USA: International Monetary Fund, 2018) accessed November 21, 2024

Summary

This paper reviews observance of Insurance Core Principles in Indonesia. Insurance regulation and supervision have been remarkably improved since the establishment of the Financial Services Authority (OJK) and the enactment of the new Insurance Law. However, the assessment has identified a significant number of shortfalls in observance with the Insurance Core Principles. Some deficiencies are owing to the lack of effective group regulation and supervision of insurance groups. Although OJK has implemented regulations related with risk management and group capital, intragroup transactions are not well taken into account. It is recommended that OJK should improve the effectiveness of supervision. Thematic reviews of reserving practices will encourage more conservative reserving.

Subject: Capital adequacy requirements, Financial institutions, Financial regulation and supervision, Financial services, Insurance, Insurance companies

Keywords: Bankruptcy petition, Board of directors, Capital adequacy requirements, Cash flow, CR, Discount rate, Financial system, Global, Insurance, Insurance companies, ISCR, Legal power, OJK revise, Reinsurance company, Risk management

Publication Details

Pages:

63
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2018/074
Stock No:

1IDNEA2018003
ISBN:

9781484346297
ISSN:

1934-7685

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