Attended the socialisation of Rancangan Peraturan Otoritas Jasa Keuangan (RPOJK) at OJK yesterday. RPOJK literally means draft of OJK rule.
Some pointers can be highlighted:
• Priority cession for domestic reinsurance company — this shall applicable for both treaty and facultative business
• Minimum percentage and/or amount is clearly defined, whichever higher for each line of business
• There will be a joint capacity from all (four) local reinsurance companies > conventional capacity.
• Local reinsurance companies have to become a locomotive for sustainable grwoth of ceding companies.
• PT Reasuransi Indonesia Utama (Persero) – shall be known as Indonesia Re, has been established.
• Indonesia Re shall have IDR 10T of capital. First initiation shall be IDR 900 Bio to be deposit by today. Early 2015 shall have another IDR 600 Bio. In total, as start-up Indonesia Re shall have IDR 1,5T capital.
• Indonesia Re, try to avoid big capital syndrom. Huge capital in the start-up, so would have less prudent underwriting.
• For takaful and/or retakaful, it is still not clear. OJK shall go further discussion over the matters related to (re)takaful in Indonesia.