PT AIA Financial (AIA) has launched AIA Bahagia Bersama as its first unit link insurance to fulfil the requirements set by the Financial Services Authority (OJK), Indonesia's insurance regulatory authority.
On March 14, 2022, OJK authorised a new regulation known as OJK Circular Letter No. 5/2022 on investment-linked insurance products (SEOJK PAYDI) or unit links.
Effective from 2023, SEOJK PAYDI regulates three main aspects of a unit link product: marketing, product transparency and unit link asset management. With the improvement, the public is expected to better understand and reap the benefits of unit link products.
“We welcome SEOJK PAYDI No. 5/2022 for the protection of every party involved, from corporations, sales forces and especially to our customers. It is manifested through the launch of AIA Bahagia Bersama as our first unit link insurance product that has been authorized as up-to-standard according to the new regulation,” said AIA President Director Sainthan Satyamoorthy.
“AIA’s leadership in product development is supported by in-depth understanding of our customers’ needs in ensuring that our product quality is considered satisfactory according to requirements set by regulators,” he added.
Previously, AIA had also implemented several SEOJK regulations such as zero illustration in May 2022 to display possible investment fluctuations in unit link products and product insurance costs of basic and additional insurance products in a transparent manner, according to Mr Sainthan.
“We have recorded the unit link product agreement for AIA and appreciate the steps it has taken as a life insurance company that adopted SEOJK’s requirements for its unit link products early,” said OJK Institutional and Non-Bank Financial Industry (IKNB) Director Asep Iskandar.
“OJK hopes that it will be followed by other life insurance companies as the protection of customers must be the main priority in business operations. Surely, this will lead to the creation of a more conducive industry climate,” Mr Asep said, reported Jakarta Post.