The Financial Services Authority (OJK) has set a five-point strategic plan for 2018 for the supervision of the non-bank financial industry, which is highly relevant to the insurance industry.
Mr Riswinandi, Executive Director of the Non-Banking Financial Industry unit (IKNB) at OJK, outlined the strategic directions at a recent conference, according to a report by Metro TV.
He said that the first strategic direction is to employ more information technology in supervision and to increase joint supervision between the bank supervisory unit and the IKNB supervisor. The moves would involve the use of an integrated surveillance application system, analysis of qualitative and quantitative data including the real time and accurate analysis of risk and calculation of financial ratios, as well as an online reporting system integrated with a surveillance application system that can provide early warning and periodic reporting to supervisors including financial health data.
The second strategic direction is to develop the Shariah economy and finance by increasing the availability and diversity of Shariah financial/insurance products, increase human resources capacity in takaful, and expand public access to Shariah insurance products.
The third strategic direction is to expand access to finance by increasing the range of insurance products that are able to reach and meet the needs of the community. Among programmes already available are microinsurance, rice farming insurance, fishermen insurance, and cattle business insurance.
"And recently OJK has given policy approval to shrimp farming insurance," Mr Riswinandi said.
The fourth strategic direction is to strengthen the supervision of financial conglomerates that is coordinated internally by an integrated supervisor assisted by bank supervisors, capital market supervisors and non-bank supervisors.
The fifth strategic direction is the development of FinTech, which in the opinion of OJK has increased and facilitated access to financial services.
"We see the potential of the Internet-connected community as very wide and it is hoped that the insurance industry will develop distribution channels through digital financial services," Mr Riswinandi said.
OJK will also in 2018 review the need for regulation and changes in the direction of supervision following the development of FinTech. "What we are thinking of is not only from the aspect of marketing distribution, but also from the aspects of acceptance, underwriting as well as claims," he said.