Govt. Regulates “Bancassurrance” Mechanism in Detail

The Financial Service Authority (Otoritas Jasa Keuangan– “OJK”) has issued Circular Letter No. 32/SEOJK.05/2016 (“Circular Letter”) on the Marketing of Insurance Products Through Cooperations with Banks (Bancassurance).In essence, the Circular Letter is an implementation of OJK Regulation No. 23/POJK.05/2015 on Insurance Products and the Marketing of Insurance Products (“23/2015 OJK Regulation”), which required further provisions to be set out as regards cooperations between banks and insurance companies relating to the sale of insurance products through banks (“Bancassurance”). [1] The Circular Letter covers: