OJK tightens rules on unit-linked insurance

The Financial Services Authority (OJK) has issued a more stringent regulation on unit-linked insurance, following a string of protests from policyholders over the past few months. A recent circular replaced a 2006 regulation on unit links, according to a report by the Jakarta Post.

The new regulation lays out new provisions regarding the marketing, asset management, transparency and minimum capital requirements for selling such products, which is a combination of regular insurance with an investment portfolio that fluctuates with the market. “The new rule will improve consumer protection, governance and risk management in insurance companies so that selling unit-linked products will no longer cause problems in the future,” said OJK commissioner Riswinandi in a statement.