Bali, with its booming economy and expat-friendly environment, presents an attractive opportunity for multinational companies seeking to venture into the general insurance services sector.
Under the Indonesian KBLI Code 65121, conventional insurance businesses can open operations to provide risk underwriting and financial protection against losses, damages, or third-party liabilities.
This sector encompasses a wide range of services, from property and casualty insurance to life and health coverage.
This blog post delves into the realm of general insurance services, focusing on conventional insurance operations in Bali, Indonesia.
As a multinational company looking to establish a presence in Bali, understanding these aspects is crucial for successfully opening your insurance services and navigating the local business landscape.
Overview
The conventional general insurance sector under KBLI Code 65121 encompasses businesses that provide risk coverage services.
These services compensate policyholders for losses, damages, incurred costs, lost profits, or legal liabilities to third parties that may arise from unforeseen events.
This introduction sets the stage for understanding the broader scope and significance of these insurance operations in Indonesia.
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 license required for operating a general insurance company under this KBLI code is issued by the Financial Services Authority (OJK), which oversees the compliance and regulatory fulfillment of financial institutions in Indonesia.
This license confirms the legitimacy and operational standards of the insurance provider.
Coverage of Service
The services offered by businesses operating under KBLI Code 65121 include a wide range of general insurance products.
These products cover various risks such as property damage, vehicle accidents, health-related issues, and other significant risks that require comprehensive insurance solutions.
Business Scale, Land Area, and Risk Level
Businesses classified under this KBLI code typically operate on a large scale due to the extensive coverage and substantial capital requirements.
Although there is no specific regulation concerning the land area for these operations, the risk level is categorized as high.
This classification underscores the critical nature of risk management in the insurance sector.
Authorities Granting Licenses
The licensing authority for general insurance businesses is the Minister or Head of the Agency of the Financial Services Authority (OJK).
The OJK’s role is crucial in ensuring that insurance companies meet the necessary regulatory standards and operate with financial integrity and responsibility.
Requirements and Obligations for Business Licensing
To obtain a business license, insurance companies must apply through the OSS system to receive a Business Identification Number (NIB).
Further business licensing is then processed and issued by the OJK, following specific regulations.
Insurance businesses must fulfill all regulatory obligations and conditions set by the OJK, which include financial reporting, risk management practices, and consumer protection measures.
The timeframe for meeting these requirements and obligations is dictated by the OJK and must be adhered to for the continuation of the license.
Frequently Asked Questions
- What types of general insurance services can I offer under KBLI Code 65121 in Bali?
Under KBLI Code 65121, your business can offer a variety of general insurance services including property and casualty insurance, vehicle insurance, life and health insurance coverage, and protection against third-party liabilities.
- What is the process for obtaining a general insurance license in Bali?
To obtain a license for a general insurance business, you must apply through the OSS system to receive a Business Identification Number (NIB). Subsequent licensing is processed and issued by the Financial Services Authority (OJK), adhering to specific regulatory conditions.
- How does the OJK influence the operation of general insurance businesses in Bali?
The OJK plays a crucial role in licensing, regulatory compliance, and oversight of financial practices for general insurance businesses. It ensures that companies operate with the necessary legal and ethical standards.
- What opportunities does Bali offer for new general insurance companies looking to expand?
Bali offers a robust market with a growing expatriate population and increasing business activities, making it an attractive location for new insurance companies. The island’s economic growth and its role as a tourist and business hub create numerous opportunities for insurance services catering to diverse needs.
