In this article in (Re)in Asia, Guy Carpenter’s Justin Ward, Head of Capital Advisory, APAC, described how Indonesia’s financial regulator, Otoritas Jasa Keuangan (OJK), will oversee the implementation of 2 large increases to the required capital reserve holdings of every insurance company registered in the country over the next 44 months.
“This will be a significant global minimum capital requirement event,” Justin said.
Justin went on to describe how the capital requirements may be straightforward for the many domestic insurers owned by diversified conglomerates, but “it seems unlikely that there will be a strong appetite for foreign direct investment due to the current industry returns and regulatory setting.”
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