Third-party intermediaries include insurance brokers and insurance agents. Insurance brokerage companies must obtain a business license from the Financial Services Authority (OJK). Insurance brokers must be registered with the OJK. Insurance agents must be certified and also registered with the OJK. In addition, the prevailing regulations provide that agency agreements must be reported.

No. It is not mandatory for insurers to offer customers the option to purchase insurance products directly from them without going through financial advisers or intermediaries.

Yes. There should be written agreements between the insurers and their appointed agents. Agreements must include at a minimum (1) in-agency agreements on ethical principles set by the association in accordance with the business lines; (2) obligations on the insurance agents to comply with the ethical code set by the association, together with applicable sanctions for every violation by the insurance agents; and (3) time periods for the submission of premiums and contributions to the insurers. Agreements should be in the Indonesian language.

There is no prohibition on paying sales-based commissions to appointed agents. However, there are limits under OJK Circular Letter No. 21/SEOJK.05/2015 (OJK Circular Letter 21) for (1) property insurance at a maximum 15% of the premium tariff or contribution, and (2) for motor vehicle insurance at a maximum 25% of the premium tariff or contribution.

Yes. Generally, insurance companies are liable for mis-selling by the relevant insurance agents.

No. There are no rules on the number of insurers that insurance brokers need to present to their customers. Banks, however, must offer at least three products if credit linked.

Insurance brokers may receive fees from both insurers and customers, but the commission paid by insurers are subject to the limitations described in question 4.

There is no restriction on this matter.

Under Article 16 of Regulation No. 69/POJK.05/2016 on Business Implementation for Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies (OJK Regulation 69), insurance companies must appoint insurance agents registered with the OJK. Insurance companies, therefore, cannot appoint offshore agents. On the other hand, insurance companies may
accept business from offshore brokers. Under Article 22 of OJK Regulation 69, insurance companies that accept business from offshore brokers must ensure that the brokers are licensed by offshore insurance regulators.

Yes. Based on Articles 45 (1) and Article 47 (1) of Regulation 23/POJK.05/2015 on Insurance Product and Marketing of Insurance Products (OJK Regulation 23), insurance companies may market insurance products using long-distance communication media such as mail, telephone (telemarketing), internet, television, radio or short message services. OJK Regulation 23 provides that marketing materials for insurance products offered through remote selling must contain information on the identity of the insurance company, the offered insurance products, and also the terms and conditions of the insurance policy.

For investment-linked products, a face-to-face meeting must be held as a follow-up to the remote sale.

Yes. Under OJK Regulation 23, insurance product marketing materials offered through remote selling (as defined in question 10) must contain information on the identity of the insurance company, offered insurance products, and the terms and conditions of the insurance policy.

Insurance companies can only share client information with insurance agents and brokers and vice versa if the customer has provided written consent to the use (defined broadly) and purpose of dealing with personal data.

Insurance companies must also ensure that third parties use data strictly for the purpose agreed by the third parties and the insurance companies.

Minister of Communication and Informatics (MOCI) Regulation No. 20 of 2016 on Personal Data Protection in Electronic Systems (Data Protection Regulation) regulates the following requirements for displaying, announcing, transmitting, disseminating and/or providing access:

a. The display, announcement, transmission, dissemination and/or accessibility of personal data are limited to the extent data is disclosed to and given consent by the data owners. Personal data used in these processes must be verified to ensure its accuracy.

b. Personal data used in these processes must be verified to ensure its accuracy.

c. Offshore data transfers may only be conducted after proper coordination with the MOCI (which involves reporting the plan and results of the transfer and seeking advocacy [though the later is unclear]). This process will need to be further clarified by the MOCI.

Access to personal data can be provided for law enforcement purposes based on a valid request from the law enforcement agency.