The Financial Services Authority (OJK) has said that there were still 27 insurance and reinsurance companies in Indonesia that did not have actuaries as of 9 October 2023, even though there were less than three months for these companies to submit their requests for a fit and proper test to the OJK for an appointed actuary by the end of this year.
The 27 companies consisted of two life insurers, 21 general insurers, one reinsurer, one family takaful operator and two Shariah-compliant general insurance companies, said the chief executive of the OJK Insurance, Guarantee and Pension Fund Supervision division, Mr Ogi Prastomiyono, in an official statement.
Under the insurance law and regulations, (re)insurers are required to employ actuaries in sufficient numbers, according to the type and line of business they operate. The required number is at least one appointed actuary, reported MediaAsuransi.
In addition, under PSAK 74, which is the Indonesian equivalent of IFRS 17 regarding Insurance Contracts, to be implemented with effect from 1 January 2025, actuaries will play a key role.
Mr Ade Bungsu, the general chair of The Society of Actuaries of Indonesia (PAI), the number of full-time actuaries who are fellows (FSAI) as of August 2023 was 460 while the number of those who were Associates of the society (ASAI) was 308.
He deems the supply of actuaries in the country as sufficient and that the current situation with the profession is that the distribution of actuaries is uneven across insurance companies due to differences in the companies’ ability to absorb and employ actuaries. He told MediaAsuransi that in general, companies that offer higher remuneration to actuaries will find it easier to employ actuaries.
