Page 18 - AEC Digital Edition

limited circumstances where Indonesian insurance
providers are either unable or unwilling to provide the
coverage. A new state-owned Indonesian reinsurance
company however was set up by Presidential Regulation in
October 2015, PT Reasuransi Indonesia Utama (Indonesia
Re). The purpose of Indonesia Re is to provide reinsurance
capacity to the local Indonesia insurance market.
In Singapore, unlicensed foreign insurers, who are
not carrying on insurance business in Singapore under
a foreign insurer scheme, such as the Lloyd’s Scheme
and the Lloyd’s Asia Scheme, may not carry on insurance
business in Singapore. Further, Singapore does not permit
non-admitted insurers to advertise or promote their
insurance products.
As the insurance industry shifts to adapt to the
digitalisation of the ASEAN markets, particularly with
regard to cross-border supply, data privacy regulations
and cyber-security laws of each member country may
expose the insurance industry to new compliance
risks. Equally, it could also present opportunities to the
insurance industry as businesses in the region look to
mitigate their own cyber-security risks by purchasing
cyber-related insurance products.
Data privacy issues from cross-border supply
Indonesia, Malaysia, the Philippines and Singapore have
data protection laws, but the rest of the AMC do not have
comprehensive legislations that regulate the processing
and protection of personal data. Instead, member states
without comprehensive data protection legislation have
sectorial regulations with respect to information on
certain industries, eg, usually the telecommunication
and financial sectors.
Thailand’s Civil and Commercial Code allows an
individual to seek compensation if it can be proven that
Free movement of persons within the AEC should eventually encourage Back to Contents
the movement of talent and knowledge across the insurance industry.
16 AEC – IMPACT ON INSURANCE • DECEMBER 2015
the damage was caused by a wrongful act regarding their
personal data. There are also broad provisions in the
2007 Constitution that recognise an individual’s right to
privacy. The fact that the application and enforcement
of existing data privacy legislation is different among
the AMC means that insurers carrying out cross-border
supplies will need to navigate through a complex web of
data privacy protection provisions.
Consumption abroad
Whilst the end goal of the AEC is to remove boundaries
amongst the AMC, local regulations restrict cross-border
marketing of businesses, thereby creating a barrier that
hinders the free flow of commerce.
In Indonesia, unlicensed foreign insurers are not
currently allowed to advertise their business. An
Indonesian resident or citizen outside Indonesia may
purchase insurance overseas for a temporary or long-
term period, but only for the period they are outside
of Indonesia. The consumption of insurance services
abroad is therefore subject to the residency status of the
individual.
In Malaysia, foreign insurers may provide insurance
services through local brokers, if they are approached
outside Malaysia by an approved Malaysian insurance
broker to issue life policies for clients in Malaysia. The
soliciting and advertising of insurance policies in Malaysia
by unlicensed foreign insurers is not permitted, but the
consumption of insurance services abroad is allowed,
provided the insurance policy is concluded outside of
Malaysia.
Cross-border consumption of life insurance by
Singapore residents is allowed, if such sales do not render
the offshore life insurer’s business activity to be carrying
on a business in Singapore.