Building Financial Safety Nets for Policyholders: Urgency and Legal Challenges of the Insurance Policy Guarantee Program in Indonesia

Utiyafina Mardhati Hazhin, UM Hazhin and Sylvia Janisriwati, Sylvia J (2026) Building Financial Safety Nets for Policyholders: Urgency and Legal Challenges of the Insurance Policy Guarantee Program in Indonesia. Jurnal Negara Hukum: Membangun Hukum untuk Keadilan dan Kesejahteraan, 17 (1). pp. 109-125. ISSN E-ISSN: 264-2813, P-ISSN: 2087-295X

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Abstract

In recent years, several default cases involving insurance companies in Indonesia have eroded public trust in the insurance industry. Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK Law) mandates the Indonesia Deposit Insurance Corporation (Lembaga Penjamin Simpanan/LPS) to administer the Insurance Policy Guarantee Program. This study examines the urgency of establishing the Insurance Policy Guarantee Program and the legal and institutional challenges related to its implementation in Indonesia. This research employs a normative legal research method using both statutory and comparative approaches through an analysis of the P2SK Law, related regulations, and policyholder protection practices in several countries. The study indicates that the Insurance Policy Guarantee Program is necessary to provide legal protection and certainty for insured parties or policyholders when insurance companies experience financial distress or the revocation of their business licenses. In addition, the program is expected to maintain the stability of the insurance industry and fulfill international standards of consumer protection in the financial sector. However, its implementation requires comprehensive regulation regarding financial soundness criteria, funding mechanisms, guarantee limits, and the scope of insurance products covered. Therefore, collaboration among regulators, insurance companies, and other stakeholders is necessary to ensure the sustainability and effectiveness of the Insurance Policy Guarantee Program. Keywords: Insurance; Insurance Policy Guarantee Program; Indonesia Deposit Insurance Corporation

Item Type:	Article
Subjects:	K Law > K Law (General)
Divisions:	Faculty of Law > Department of Law
Depositing User:	UTIYAFINA MARDHATI HAZHIN
Date Deposited:	06 Aug 2026 08:21
Last Modified:	06 Aug 2026 08:21
URI:	http://repository.ubaya.ac.id/id/eprint/51137

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