To strengthen the insurance sector and align it with the objectives outlined in Law No. 4 of 2023 (often referred to as the Omnibus Financial Law) and Government Regulation No. 14 of 2018 as amended by Government Regulation No. 3 of 2020 (which governs foreign ownership in insurance companies), the Financial Services Authority or OJK enacted OJK Regulation No. 23 of 2023 on Business and Institutional Licensing for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Companies (“Regulation 23/2023”) at the end of 2023.
Regulation 23/2023 comprises of 162 articles, distributed across 22 chapters. Effective since 22 December 2023, Regulation 23/2023 replaces OJK Regulation No. 67/POJK.05/2016 and its amendments, and amend certain articles in the following regulations:
- OJK Regulation No. 71/POJK.05/2016 on the Financial Soundness Levels of Insurance Companies and Reinsurance Companies.
- OJK Regulation No. 72/POJK.05/2016 on the Financial Soundness Levels of Insurance Companies and Reinsurance Companies operating under Sharia Principles.
- OJK Regulation No. 73/POJK.05/2016 on Good Corporate Governance of Insurance Companies.
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