COMPLIANCE ;
o
To undertake
business activities in accordance with :
§ Laws and/or regulations that govern the business
§ Internal policies and procedure
o
To put the
client’s interest above all
WHAT LAWS AND REGULATIONS TO COMPLY WITH ?
o
Law and
Government Regulation
§ Insurance Law No. 2/1992
§ Insurance Law 40/2007
§ Government Regulation – Various President Decrees
§ Ministry of Finance – MOF Decrees
§ Corporate Deed – Annual General Meeting requirements
§ Tax Regulations
WHAT INTERNAL POLICIES AND PROCEDURES TO COMPLY WITH ?
o
Conflict of
Interest Policy
o
Standard
Operation and Procedures
o
Remuneration
disclosure
o
Ethic Code and
Practice
HOW CAN WE BE A GOOD CITIZEN IN INSURANCE INDUSTRY
o
Obey the laws and
regulations
o
Maintain
communication with regulators
o
Perform good
bueinss conduct – refer to code of conduct & Practice
o
Place our clients
interest first
o
Respect to
Insurers, Loss Adjusters and other parties in the insurance industry
o
Participate in
Indonesian Brokers association for our common gial and interest
WHY WE HAVE TO PUT THE CLIENT’S INTEREST ABOVE ALL
o
We are
representing our clients for their insurance
o
We are advisors
to our clients, we must be competent in carrying out our duties
o
Our clients rely
on our expertise in the insurance we are arranging for them
o
It is our clients
insurance which we are placing, there fore: it is their interests not ours.
HOW CAN WE PUT OUR CLIENT’S INTERETS ABOVE ALL ?
o
Understand your
clients and their Insurance needs
o
Seek the best
terms and conditions for the client not for broker’s benefit
o
Select the
reputable insurance to approach
o
Be transparent to
the clients of all terms and conditions
o
Provide advice on
the insurance market conditions
o
Let the client
make their decision based on our correc information
HOW CAN WE ACT IN THE CLIENT’S BEST INTERESTS?
o
Quote
§ Information must be submitted to the Insurers for them
to quote
§ Obtain quote from reputable insurance companies based
on the same information to ensure competitiveness
§ Report result of market responses to the client
(explain any differences)
§ Let the client make their decision on which quote they
select based on our help if required.
QUOTE PROCESS
o
Obtain as much
information related to the risk as possible
o
Ensure that you
understand the client’s inforamation – confirm this in writing
o
Also remember the
KYC Form
o
Provide all and
same information to the insurers who are invited to quote
o
Gather all market
response fron the Insurers
o
Report to the
client of the quotes received from the market
o
When required by
the client – disclose your commission
HOW CAN WE ACT IN THE CLIENT’S BEST INTERESTS ?
o
Placement
§ On the receit of confirmation of the agreed quote,
place an order to the selected insurer with the agreed terms and conditions
§ Advice the non-selected insurers to close their file
§ Once confirmation of placement order received,
immediately advise the placement to the client
PLACEMENT PROCESS
o
Act promptly to
place the clients’s insurance as soon as instruction is received
o
Do not allow
interval between instruction and placement
o
Placement must be
checked with quote agreed by both client and the insurer
o
Obtain written
confirmation of acceptance fro the
insurer
o
Advise client
that their instruction has been carried out
HOW CAN WE APPLY THESE TO THE DAY TO DAY PRACTICE ?
o
Insurance Policy
Issuance
§ Upon receipt of the policy document from insurer, the
document to be chacked to insure that the document issued as per agreed terms
and conditions
§ If the policy is in order, send the policy to the
client
§ Premium Collection
§ Premium Payment to Insurer
SOME POINTS TO NOTE
o
Whern gathering
information – make sure that all information is correct – also accommodate KYC
information
o
Always confirm
verbal communication in writing and confirm the client and insurer’s agreement
t o the points discussed
o
Dual verification
on quotation, placing and confirmation of cover document which leave your
office, to ensure checking of documents is performed
o
Place the
insurance in consideration what is best for the client not for the broker
o
Explain coverage
including exclusions to the client
o
Do your job with
care to avoid E & O
o
Be transparent of
broker’s commission when requested by the client (until we receive confirmation
from MOF that broker must declare the remuneration)
o
Always remember
it is your client’s insurance policy
BENEFITS OF BIENG COMPLIANCE
o
Shows
professionalisme to client, insurers, competitors and regulator
o
Understand your
clients and their insurance needs
o
Shows our care to
the clients, as theis consultant
o
No law breaching
o
Respected by all
parties in the industry
o
E&O avoidance
o
Avoid money
laundering practice
o
No corrupt
practices support
o
Act as client’s
independent advisors
o
Avoid conflict of
interest situation
o
Reduce risks of
being critized - favoritism ?
Catatan
tambahan :
Compliance : deal dengan regulation and internal
control - GCG
Other parties : agent & Brokers
Quote jika
diserahkan oleh client ->buat konfirmasi dan tunjuk asuransi berikut alasan
dan penjelasannya
Sudah kirim confirmation – harus sehera minta balasan
dari asuransi
Asuransi tidak terpilih –
diberikan konfirmasi tertulis
Renewal : ingatkan jika
ada perubahan UGF tetap melekat
Kick back – buat
perjanjain tertulis dengan agent
File2 yang harus disimpan
lifetime : karena claim bisa terjadi kapan saja : LIABILITY POLICY
File Personalia