The Financial Services Authority (OJK) and the Deposit Insurance Corporation (LPS) are in the process of drafting a preliminary design for an insurance policy guarantee scheme specifically tailored to the Indonesian insurance industry, reported CNBC Indonesia.
This initiative is part of the preparations for the Policy Guarantee Programme (PPP) that LPS plans to implement.
Chairman of the Board of Commissioners at OJK Mahendra Siregar, indicated that the scheme will be formalised in a Government Regulation (PP).
The PPP is expected to commence operations in 2028.
As a key initiative and foundational step, Mr Mahendra announced that the Financial Services Authority (OJK) launched a national policy database last June. This initiative aims to ensure accurate, data-driven underwriting of insurance policies.