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Detikfinance - 24 Dec 2013

OJK Socializes Insurance Premium Rates from Motor Vehicles to Disasters

Insurance OJK

The Financial Services Authority (OJK) held socialization for insurance rates before entering the 2014.

Taking place in the head office of Association of General Insurance Indonesia (AAUI) Jakarta, OJK gave explanation about the determination of premium rates and commissions on insurance for motor vehicles, burning, earthquake and flood insurance.

This occasion was attended by the industrial insurers and OJK leaders. OJK commissioner overseeing non-banking financial industry, Firdaus Djaelani explained during his introduction speech that the new rates would start in January 1st, 2014. This makes the industrial insurers in Indonesia discipline and punctual on deciding the number of premium rates depending on the potential risk.

“The regulation problems must be changed with the deregulation, and let the market mechanism works. The rates could not be discriminative. I feel that mostly market worker are not discipline. Actually, the industrial insurers realize the need of the rule that can manage the rates,” Firdaus said in head office of AAUI, Permata Kuningan, South Jakarta, Tuesday (24/12/2013).

The standard for the new rates are set by OJK will be the base for insurance industry. “OJK does not mean to give profit to insurance companies by giving the insurance rates. Instead, OJK wants to give protection for the consumers,” He said.

The determination of the premium rates that are set by OJK, is the result of listening to a lot of aspirations so that after this determination insurance industry in Indonesia can grow healthily and strongly. In addition, it can also protect insurance consumers.

“The rates that we are going to socialize, have been consulted with the KPPU and they support the new rates, because the current insurance rates are very dangerous,” He explained.