The Indonesian House of Representatives recently passed a new Insurance Law (2014 Insurance Law), which will replace the 1992 Insurance Law once it is signed by President Widodo. The 2014 Insurance Law provides an updated legal framework for the Indonesian insurance industry, with further regulations and guidelines for implementation expected to be issued by Indonesia’s Financial Services Authority (OJK) within two and a half years from the date the law is formally enacted.
The 2014 Insurance Law will undoubtedly enhance the framework of the current insurance market landscape, which has undergone significant growth and development since the current Insurance Law was enacted in 1992. This Asia e-Alert discusses several key implications of the new legislation.