Bali, Indonesia, has become a prominent destination for foreign direct investment firms looking to expand into the financial services sector.
Launching a conventional life insurance company as a foreign direct investment firm in Bali presents an exciting opportunity within the Indonesian market.
This business activity, classified under KBLI code 65111, involves providing life insurance services and financial risk mitigation solutions.
The scope encompasses offering policies that provide payouts to policyholders, insured individuals, or beneficiaries in the event of death or survival of the insured, as well as other predetermined or fund-managed payments as stipulated in the contractual agreement.
By launching your business in Bali, you can tap into a growing market that values robust financial planning and security.
Overview
Conventional Life Insurance (Asuransi Jiwa Konvensional) under KBLI Code 65111 includes businesses that provide life insurance services organized conventionally.
These services involve managing risk mitigation that ensures payouts to policyholders, the insured, or other rightful beneficiaries upon the insured’s death or survival.
Additionally, these services can include predetermined or performance-based payments set forth in the policy agreement.
Legal Basis
The operations of conventional financing companies are regulated under Indonesian financial services law, primarily overseen by the OJK.
These regulations ensure that all financial activities are conducted in a controlled and secure manner, adhering to the standards set by the government to protect both the businesses and their clients.
Type of License
The business requires a Commercial Business License (Izin Usaha).
Applications for business licenses are processed and issued by the Financial Services Authority (Otoritas Jasa Keuangan – OJK), adhering to the specified regulatory conditions.
Coverage of Service
The service coverage includes the provision of life insurance that guarantees compensation to the insured or their beneficiaries in cases of death or survival, under terms agreed upon in the insurance contract.
Business Scale, Land Area, and Risk Level
The conventional life insurance business falls under the category of large-scale enterprises.
Regulations do not specify a required land area for operations, providing flexibility in choosing the location for the business premises.
However, this type of business is classified as high-risk due to the financial and actuarial liabilities involved.
Companies must manage these risks effectively to maintain solvency and protect policyholders.
Authorities Granting Licenses
The primary authority responsible for issuing licenses for life insurance businesses is the Financial Services Authority (OJK).
This regulatory body ensures compliance with all financial regulations and standards.
Requirements and Obligations for Business Licensing
To operate a conventional life insurance business in Indonesia, companies must first obtain a Business Identification Number (NIB) through the Online Single Submission (OSS) system. Following this, the Financial Services Authority (OJK) is responsible for issuing the necessary Commercial Business License, provided that all legislative requirements are met.
Businesses must also adhere to the obligations set forth by the OJK, which include stringent compliance with financial and operational regulations.
The timeline for meeting these requirements and obligations is strictly defined by the OJK, ensuring that businesses maintain standards that protect stakeholders and the integrity of the financial system.
Frequently Asked Questions
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How can a foreign firm establish a life insurance business in Bali?
A foreign firm can establish a life insurance business in Bali by applying for a Commercial Business License through the Online Single Submission (OSS) system and obtaining a Business Identification Number (NIB). The application must be approved by the Financial Services Authority (OJK).
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What type of financial services does a life insurance firm under KBLI Code 65111 provide?
A life insurance firm under KBLI Code 65111 offers services including risk mitigation through life insurance policies that guarantee payouts upon the insured’s death or survival, along with other agreed-upon benefits.
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What are the regulatory requirements for launching a life insurance firm in Bali?
Regulatory requirements include obtaining a Commercial Business License, compliance with the regulations of the Financial Services Authority (OJK), and adherence to the guidelines set under the Regulation of the Minister of Tourism and Creative Economy/Head of the Creative Economy Agency.
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How does a life insurance firm in Bali handle claims and compensation?
Life insurance firms manage claims based on the contractual agreements with policyholders. They provide compensation for claims regarding the insured's death or other specified benefits in the policy terms.
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Can foreign-owned life insurance firms in Bali offer services to international clients?
Yes, foreign-owned life insurance firms in Bali can offer services to both local and international clients, providing a broad market reach and enhancing the scope of their business operations.
Contact Us for Life Insurance Services in Bali, Indonesia.
