AAUI proposing five new proposed designs beleid

JAKARTA. General Insurance Association of Indonesia (AAUI) ultimately determine the attitude of the draft regulations related to the finance minister (RPMK) about the marketing of insurance products. AAUI beleid proposed design is more flexible especially about the application of an actuary, the name of insurance products, experts, provision of marketing two insurance companies, and bancassurance.

"Essentially we do not reject but suggested that better," said Julian Noor, Executive Director AAUI, Thursday (26 / 1).

AAUI proposal, first about the naming of products. In the design of new beleid, naming an insurance product must be distinguished from other insurance products. AAUI specifically requested that the public insurance, there are two levels of standard products and product modifications to the basic alias. The product does not need mandatory standards named but the modification does not matter if you have a different name. "Because if a standard product in exactly the same model everywhere," said Julian.

The second matter of actuaries. Beleid new steering committee requires that the product contains an actuary. The use of actuaries in general insurance is nothing new. Well AAUI asked that the general insurance actuary consultants are allowed to recruit without having to hire an actuary as a permanent employee. Because without having recruiting, companies do not need to spend operational expenses.

However AAUI also provide another alternative. If the regulator still requires, the tolerances required insurance companies have actuaries extended. In the draft beleid, tolerance given 3 years to have adjunct actuary, and 5 years of age should already have a fellow actuaries. AAUI ask for 5 years to 8 years adjunct fellow actuaries and actuaries.

All three experts about the use of obligations in each line of general insurance business. This rule is burdensome, if the insurance company has 13 lines of business. So AAUI proposed that experts be allowed to handle per group not per line of business. For instance, experts can handle marine cargo and surety ship. "In order to do because there is no expert companies can not operate," he continued.

Fourth on the provision of joint product marketing. In the draft beleid, each product marketed jointly between the insurance must be submitted to the Minister of Finance. AAUI asked that a special mechanism of co-insurance is not included that should be reported to the finance minister. Examples of co-insurance, a property guaranteed by the two insurance companies. But for the consortium is not a problem.

Last about bancassurance products. AAUI proposal relating to product collateral and assets not included bancassurance category. Examples relating to this, the insured credit guarantees. "We support this input so that the rules but the rules will also make good," added Cornelius Simanjuntak AAUI Chairman.

Responding to proposals AAUI, Head of Insurance Bureau of Bapepam-LK, Isa Rachmatawarta can not yet responded. For a while it accommodate all proposals from the insurance industry. "We are now examine all the input from AAUI," said Isa Rachmatarwata.

In addition, this new design to enhance your beleid Minister of Finance Decree (KMK) No. 422/KMK.06/2003 on Implementation of Business Insurance and Reinsurance Company and KMK No. 426/KMK.06/2003 of Institutional Business Development and Licensing of Insurance Company and Reinsurance. The purpose of new beleid later to tighten spending, development and marketing of new insurance products.