The Indonesian general insurance industry is expected to obtain approval shortly to market investment-linked insurance products (PAYDI), when it would pose competition to the life insurance sector which currently is the only segment selling the plans.
The financial regulator OJK has held discussions and hearings involving insurance associations, including the Indonesian General Insurance Association (AAUI), on the subject of technical regulations for PAYDI.
Mr Dody Achmad Sudiyar Dalimunthe, AAUI executive director, says that PAYDI will be a separate product from general insurance business lines. According to him, unit-linked products in general insurance will be added to the benefits of other plans such as property, motor vehicle, health insurance products.
The draft of an OJK circular giving effect to general insurers selling PAYDI plans has been studied by the AAUI and its member companies. According to Mr Dody, the general insurance industry is ready to market the unit-linked products which is expected to give a lift to the non-life market.