The Financial Services Authority (OJK) has eased rules related to the marketing of investment related insurance products by allowing the online sales of such products.
Mr Riswinandi, the executive head of Non-Bank Financial Institutions Supervision (IKNB) of OJK, said that the regulator had issued a circular that said that in the marketing of PAYDI (investment related) and unit linked products, face to face interaction can be conducted through digital modes such as video conferencing, video calls or a combination of these media.
At the same time, the OJK says that the wet signature in the statement of the prospective policyholder can be replaced with an electronic signature.
The signature is to indicate that the policyholder has obtained an explanation and understands the benefits, costs and risks of insurance products offered by the company.
First Condition - OJK says that digital marketing must meet several requirements. First, insurance companies must have adequate information systems and infrastructure that meet the principles of confidentiality, integrity, availability, and authenticity, and data are reliable, secured, consistent and accurate. Insurers must also maintain audit trails.
Second Condition - insurers must obtain a statement from the information technology vendor used by the company and the director in charge of the risk management function that states that the information system and infrastructure used are adequate.
Third Condition - insurance companies must have operating standards and procedures that support the implementation of digital or electronic marketing. This is to accompanied by a statement of approval from prospective policyholders and documentation in the form of video and audio recordings.
Insurers also need to have an infrastructure that allows electronic signature authentication.
In April, the Indonesian Life Insurance Association (AAJI) requested the OJK to allow life insurers to market investment related products where face-to-face meetings between marketers and prospective customers can be replaced by the use of communication technology. The AAJI also requested that the OJK remove the requirement for a wet signature and replace it with a signature in digital or electronic form.
No comments:
Post a Comment