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New OJK ruling likely to hurt bancassurance business

Bareksa05 Juni 2014
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New OJK ruling likely to hurt bancassurance business
Shareholders of Europe's biggest insurer Allianz SE arrive for the company's annual meeting in Munich (REUTERS/Michael Dalder)

At the moment, Allianz partners with Bank Muamalat and ANZ Indonesia to market its products.

The Jakarta Post - Sharia insurer Allianz Life Syariah, part of insurance giant Allianz Indonesia, has warned that a new non-bank financial regulation to be issued by the Financial Services Authority (OJK) later this year may hurt the life insurer’s bancassurance business.

Allianz sharia business manager Abdul Chalik said in Jakarta on Wednesday that sales using the bancassurance channel — through which insurance products are offered by banks — would be affected by the new regulation, which will require banks to reveal the amount of commission they receive from insurers.

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