CNN Indonesia
Monday, 24 Jul 2023 08:30 WIB
The Financial Services Authority (OJK) released new rules governing the separation of insurance and reinsurance sharia units. (BETWEEN PHOTOS/Yudhi Mahatma)
Jakarta, CNNIndonesia —
Financial Services Authority (OJK) released a new rule governing unit separation syariah insurance and reinsurance.
This regulation in the non-bank financial industry (IKNB) sector has been in effect since July 22, 2023 under the name POJK Number 11 of 2023 concerning Separation of Sharia Units for Insurance Companies and Reinsurance Companies.
This regulation was issued as a follow-up to the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (PPSK).
Previously, the rules regarding insurance and reinsurance sharia units referred to Law Number 40 of 2014 concerning Insurance. The hope is that this new POJK can create a sustainable ecosystem and not harm the interests of policyholders and participants.
There are 6 main provisions in this POJK, namely general provisions, sharia unit separation, incentives for sharia unit separation, other provisions, transitional provisions, and closing.
Meanwhile, the separation of sharia units is carried out if they meet all OJK requirements.
First, the value of tabarru’ funds and investment funds of sharia unit participants has reached at least 50 percent of the total value of insurance funds, tabarru’ funds, and investment funds of participants in their parent companies.
“Secondthe minimum equity of sharia units has reached at least Rp. 100 billion for sharia units of insurance companies and Rp. 200 billion for sharia units of reinsurance companies,” wrote the regulation, quoted Monday (24/7).
In addition, the separation of sharia units can be carried out at their own request or at the initiative of insurance or reinsurance companies. It could also be the implementation of OJK’s authority in the context of consolidation.
There are two forms of separation of Islamic units.
First, establishing a new sharia insurance or sharia reinsurance company followed by the transfer of the membership portfolio to the company resulting from the separation.
Second, transferring the entire membership portfolio in sharia units to sharia insurance or sharia reinsurance companies that have obtained business licenses.
“Insurance or reinsurance companies that have sharia units are required to segregate sharia units by the deadline of December 31, 2026. The hope is that after that there will be no more sharia units operating in the insurance and reinsurance industry,” said the OJK’s official statement.
(skt/dzu)
2023-07-24 01:30:06
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