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Banks barred from selling unit-linked products of disputed insurers: OJK
The Financial Services Authority (OJK) says it has barred banks from selling unit-linked insurance from companies engaged in unresolved disputes with customers, as the agency decides on more stringent measures to regulate the industry.
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Oversight: The Financial Services Authority (pictured above) says it has barred banks from selling unit-linked insurance from companies engaged in unresolved disputes with customers. (Kontan/Baihaki)
T
he Financial Services Authority (OJK) says it has barred banks from selling unit-linked insurance from companies engaged in unresolved disputes with customers, as the agency decides on more stringent measures to regulate the industry.
OJK spokesman Anto Prabowo said on Thursday that the agency had called executives from three insurance companies to quickly resolve disputes with policyholders.
The OJK did not name the three, but a group called the Insurance Victims Community has been in disputes with AIA, AXA Mandiri and Prudential Indonesia since last year.
“The OJK is also revising the regulation on [unit-linked products], and we will take firm action against financial services companies violating the provisions,” Anto said in a statement uploaded to the OJK’s Instagram account.
Meanwhile, Rudy Kamdani, compliance director at PT Axa Mandiri Financial Services, said there had been no changes to its distribution channels for unit-linked products.
“AXA Mandiri has not received any official instruction from the OJK that prohibits the company or partnered banks from selling [unit-linked plans],” Rudy said in a statement on Thursday.
Rista Qatrini Manurung, director of law, compliance and risk at PT AIA Financial, concurred, saying the news was misleading and untrue. All of AIA’s unit-linked marketing and business was still running, including selling through banks.
