The deadline for Indonesian insurance companies to appoint a controller is fast approaching. The Financial Services Authority (OJK) issued regulation in December, giving insurers until June 28, 2017 to comply.
The order defines a controller as a party who can appoint the directors and commissioners of an insurance firm, whether directly or indirectly, as well as control the corporate decisions made by these directors and commissioners. The controller can be a shareholder, most likely the majority shareholder, and is responsible for business continuity for the insurance company. They must ensure the fulfilment of the insurer’s obligations to its customers and policyholders.
Any changes to the controller must be reported to the OJK, and the regulator also has the authority to appoint an additional controller to work alongside the company-appointed controller.
The controller candidates must pass the fit and proper test conducted by the OJK. The test’s criteria will differ depending on whether the controller candidate is a shareholder or not in the insurer.
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