No. The sale of insurance through online platforms is still subject to the Indonesian Financial Services Authority ("OJK") Regulation No. 23 of 2015 on Marketing of Insurance Products which still assumes that the sale of insurance will be performed on an offline basis. This regulation permits sale of insurance products through any means deemed appropriate by the insurer, except that any closing of the sale of investment-linked products to be accompanied with customers' wet signatures.
Currently the sale of insurance through mobile applications as well as online sale is subject to OJK Regulation No. 23 of 2015 on Marketing of Insurance Products (see question 1). The sale must observe the requirements set out in the regulation, e.g., the insurer must ensure that customers are fully aware of the terms and benefits of the offered insurance products.
Currently the sale of insurance through mobile applications as well as online sales are subject to OJK Regulation No. 23 of 2015 on Marketing of Insurance Products. The regulation provides several key regulatory requirements: (i) the insurer must ensure that customers are fully aware of the terms and benefits of the offered insurance products, (ii) the products sold through any distribution channels must be registered with, or approved by, the OJK, (iii) any closing of the sale of investment-linked products must be accompanied with customers' wet signatures, and (iv) the insurer will be liable fully for any mis-selling conducted by its distribution partners, brokers, or agents. Consequently these issues are not easily satisfied using an online distribution model, without extensive follow-up.
There is no specific insurance regulation governing e-KYC at the moment. In practice, insurers would have to ensure that their e-KYC process meets all KYC requirements prescribed under OJK Regulation No. 12 of 2017 on Anti Money Laundering and Anti Terrorism Financing Programs in the Financial Services Sector including ensuring that the first level of customer due diligence will capture the information regarding customers (e.g., full identity, a confirmation of whether a customer acts on behalf another person or on behalf of himself/herself, registered address, nationality, source of funds, income profile, etc).
OJK Regulation No. 23 of 2015 on Marketing of Insurance Products recognizes the existence of e-policy, however (a) the e-signature must meet all requirements under the laws on electronic transactions, and (b) the e-policy concept is not feasible for investment-linked products at the moment given OJK Regulation No. 23 of 2015 on Marketing of Insurance Products still requires any closing of the sale of investment-linked products to be accompanied with customers' wet signatures.
No. Advertising of insurance products through online platforms is subject to the same regulation (OJK Regulation No. 23 of 2015 on Marketing of Insurance Products) and OJK Regulation No. 69 of 2016 on Business Implementation of Insurance Companies, as advertising through other means. As an example, OJK Regulation No. 69 of 2016 on Business Implementation of Insurance Companies requires the insurer to ensure that its advertising and marketing materials are not misleading, there is no mis-selling etc. Otherwise general regulations and codes of conduct on appropriate marketing and advertising apply.
No. The customer service requirements for online sales are subject to the same regulation (i.e., OJK Regulation No. 69 of 2016 on Business Implementation of Insurance Companies), as customer service activities through other distribution channels. As an example, the regulation requires the insurer to (a) have a customer complaint mechanism on its website, (b) deliver the hard copy of the agreed/signed policy documents to the policyholder within 10 business days after the (first) premium is paid, and (c) provide a cooling off period to customers to cancel policies within 14 days after the customers' receipt of the policy documents.
There are no such obligations as yet. Any amendments to policies will be done through the means specified in the relevant policies. If a policy provides that any amendment to the policy can be done online this could be done, however (a) the insurers must ensure that the e-signature must meet all requirements under the laws on electronic transactions (currently not that easy), and (b) the insurer needs to be comfortable if the amendments, if done online, are reliable to address any potential disputes in the future (e.g., providing an assurance that the individual who signs the amendment electronically is the correct policy owner).
Not at the moment given there is no specific regulation on online sales, so insurers can perform online sales based on their current business license.
Not at the moment given there is no specific regulation on online sales. Insurance intermediaries can perform online sales based on their current business license.
No. There is no difference on the commission rates paid between online sales and other means.
It is still unclear from an Indonesian perspective given there is no specific regulation on online sales. However, if the online sales activity is benchmarked against the current regulation, i.e., OJK Regulation No. 23 of 2015 on Marketing of Insurance Products, the insurers would be deemed as offering or selling insurance products online (as one of their distribution channels) given the regulation assumes that insurance intermediaries act on behalf of the insurers as regards distribution activities from an insurers perspective (noting that insurance intermediaries can also act on behalf of customers). The same regulation also provides that the insurers will be liable fully for any mis-selling conducted by their distribution partners, brokers, or agents.