OJK Preps Policies on Insurance Marketing via Insurtech

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) is preparing regulations on the marketing of insurance products through digital platforms or insurtech, said Riswinandi, the chief of the non-bank financial industry supervision department.

“We hope commitment from insurance companies that will sell and manage insurtech because digital sales via insurtech platforms are allowed to be carried out only by insurance brokers,” said Riswinandi in the webinar on the life insurance industry, Thursday, June 16, 2022.

Insurance companies are expected to sell products that are easy to be understood by consumers and provide certainty of refunds through easy claims as insurers make the payment of premiums.

Riswinandi assessed that the use of digital technology could still be optimized to spur the growth of the insurance industry efficiently. Moreover, there are still many people actively using digital technology yet lacking knowledge of insurance.

In 2019, based on a financial literacy and inclusion survey, only 31.26 percent of respondents had utilized digital financial services and only 9.9 percent used digital platforms to purchase insurance products online.

However, the OJK official argued that digital marketing procedures for insurance products that cut the involvement of marketing agents need to be restricted, for example for investment-related insurance products (PAYDI).

The government had issued Circular No. 5 of 2022 concerning PAYDI with the aim to encourage insurance companies to prioritize consumer protection in order to maintain public trust.

ANTARA

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