The Indonesian insurance market, having one of the world’s largest populations and high historical insurance premium growth rates, is one of keen interest.
However, KPMG recognizes that today's economic environment is forcing insurers to rethink the way they carry out business. Financial services companies have been brought to a crossroads by a number of challenges in the market:
- unpredictable markets
- regulatory changes and updates
- disruptive technologies
From a regulatory perspective, recent changes such as the listing of Indonesia as a member of the IAIS (International Association of Insurance Supervisors) and the implementation of IFRS 4 phase 1 in 2012 have arguably put the local regulatory framework under a stronger international spotlight. As a financial institution, life insurance companies face challenges in compliance with the above as well as the Foreign Account Tax Compliance Act (FATCA).