OJK Explains Recent Surge in Name Changes Among Insurance Brokers

Regulatory Compliance Drives Renaming

The Financial Services Authority (OJK) has shed light on the recent trend of insurance and reinsurance brokerage firms changing their names. Ogi Prastomiyono, the Head of the OJK's Insurance, Guarantee, and Pension Fund Supervisory Executive, stated that the primary reason behind this trend is the new regulatory requirement. The firms are now mandated to include specific terms in their names as per POJK 24/2023.

Key Regulatory Provisions

The regulation, specifically Article 11 paragraph (1) letters a and b of POJK 24/2023, requires insurance and reinsurance brokerage companies to have names that include 'pialang asuransi' or 'pialang reasuransi'. This move aims to enhance transparency and clearly identify the nature of their business activities. The OJK's initiative is part of a broader effort to strengthen the financial services sector's regulatory framework.

Implications for the Industry

The name changes are expected to bring greater clarity to the industry, helping both consumers and investors better understand the business scope of these firms. While the adjustment may involve some initial costs and administrative efforts for the companies, it is seen as a positive step towards greater transparency and regulatory compliance.