[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-109428-en":3,"doc-seo-109428-105":31,"detail-sidebar-cat-0-en-105":93},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":28,"seo_description":14,"update_tm":29,"read_time":30},109428,4398048950312,"Violet","https://ap-avatar.wpscdn.com/avatar/400002538284de19e3c?_k=1778320343897328908",8,"Research & Report","Financial Sector Assessment Program - Insurance Regulation and Supervision - Technical Note","Technical Note supports the Financial Sector Assessment Program (FSAP) findings and recommendations for Indonesia’s insurance sector. It explains the Financial Services Authority (OJK) regulatory and supervisory progress since the 2017 FSAP, including the Financial Sector Omnibus Law (FSOL) and enhancements to institutional powers, insurance regulation, and supervisory framework. The note details supervisory objectives, solvency framework, risk management, governance, supervision practices, and approaches to changes of control and resolution.","April 2024  \nPublic Disc losure Authorized  \nPub lic Disc losure Authorized  \nTHE WORLD BANK GROUP  \nINDONESIA  \nFINANCIAL SECTOR ASSESSMENT PROGRAM  \nTECHNICAL NOTE  \nINSURANCE REGULATION AND SUPERVISION  \nPrepared By  \nFinance, Competitiveness, and Innovation Global Practice, WBG  \nThis Technical Note was prepared by Danita Pattemore (Senior Financial Sector Specialist) in the context of a joint IMF-World Bank Financial Sector Assessment Program (FSAP) mission in Indonesia during December 2023 led by Ranjit Singh, IMF and Ilias Skamnelos, World Bank, and overseen by the Monetary and Capital Markets Department. IMF, and the Finance, Competitiveness, and Innovation Global Practice, World Bank Group. The note contains the technical analysis and detailed information underpinning the FSAP assessment’s findings and recommendations. Further information on the FSAP program can be found [at ](at www.worldbank.org/fsap)[www.worldbank.org/fsap](at www.worldbank.org/fsap).  \nCONTENTS  \nGLOSSARY .................................................................................................................................................................................. 3  \nExecutive Summary ................................................................................................................................................................. 4  \nTable of Recommendations................................................................................................................................................. 6  \nINTRODUCTION AND BACKGROUND........................................................................................................................... 10  \nA. Scope and Approach ................................................................................................................................................. 10  \nB. Market Structure, Insurance Products and Industry Performance ...........................................................11  \nC. Key Risks and Vulnerabilities .................................................................................................................................. 17  \nD. Institutional arrangements for financial sector regulation and supervision ........................................20  \nREGULATION AND SUPERVISORY OVERSIGHT .........................................................................................................22  \nA. Supervisory Objectives, Powers, Independence and Resources ...............................................................22  \nB. Solvency Framework...................................................................................................................................................27  \nC. Risk Management and Governance .....................................................................................................................32  \nD. Supervision ....................................................................................................................................................................37  \nE. Changes of Control and Resolution .....................................................................................................................43  \n GLOSSARY  \n\n| ALM | Asset Liability Management |\n| --- | --- |\n| BI | Bank Indonesia |\n| FSAP | Financial Sector Assessment Program |\n| FSOL | Financial Sector Omnibus Law |\n| GAAP | Generally Accepted Accounting Principles |\n| IAIS | International Association of Insurance Supervisors |\n| ICP | Insurance Core Principles |\n| IDR | Indonesian Rupiah |\n| IFRS | International Financial Reporting Standards |\n| IT | Information Technology |\n| LPS | Deposit Insurance Corporation |\n| MoU | Memorandum of Understanding |\n| MCR | Minimum Capital Requirement |\n| OJK | Financial Services Authority |\n| ORSA | Own Risk Solvency Assessment |\n| PAI | Society of Actuaries of Indonesia |\n| POJK | OJK Regulation |\n| RBC | Risk-Based Capital |\n| RFK | Financial Rehabili","cbCaif3F5sm8t3da","https://ap.wps.com/l/cbCaif3F5sm8t3da","pdf",702316,5,1,45,"English","en",105,"# Glossary\n# Executive Summary\n# Table of Recommendations\n# Introduction and Background\n## Scope and Approach\n## Market Structure, Insurance Products and Industry Performance\n## Key Risks and Vulnerabilities\n## Institutional arrangements for financial sector regulation and supervision\n# Regulation and Supervisory Oversight\n## Supervisory Objectives, Powers, Independence and Resources\n## Solvency Framework\n## Risk Management and Governance\n## Supervision\n## Changes of Control and Resolution","[{\"question\":\"What is the purpose of this Technical Note in the FSAP process?\",\"answer\":\"It provides the technical analysis and detailed information underpinning the FSAP assessment’s findings and recommendations for Indonesia’s insurance sector.\"},{\"question\":\"How has the OJK’s regulatory and supervisory framework changed since the 2017 FSAP?\",\"answer\":\"The OJK has updated its frameworks, with the FSOL enhancing the institutional set-up, powers, insurance regulations, and supervisory framework, including requirements for a policyholder protection scheme to be developed and operationalized within five years.\"},{\"question\":\"What supervision tools and approaches does the note describe for insurance oversight?\",\"answer\":\"It highlights increased supervision capabilities, the use of SupTech for efficiency, risk methodology structured for granular analysis, ongoing off-site monitoring, and a robust five-point supervision cycle that includes frequent risk assessments.\"}]","Financial Sector Assessment Program - 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