Insurance Asia (May 2024) by Charlton Media Group

Issue No. 21

Display to 31 May 2024

THE AWARDS ISSUE BEST INDUSTRY PLAYERS LAUDED IN THE 7TH INSURANCE ASIA AWARDS 2023

Insurance Asia

RISKS ESCALATE FOR SRI LANKAN INSURERS INSURERS SWEAT TOWARD FASTER RISK MITIGATION AMIDST THE HOTTEST YEAR YET NEW ACCOUNTING RULE MAY STRAIN CAPITAL RESERVES OUTDATED SYSTEMS CAUSE DATA BREACHES, STUNT MARKET

Pearlyn Phau CEO, Singlife Group p. 20

Hengky Djojosantoso CEO, Ciputra Life p. 22

e c R a h e c R a h for for t G e r a Great

Reach for your dreams, hopes, and ambitions. Reachfor foryour yourdreams, dreams, hopes, and Reach hopes, and ambitions. Reach for bigger challenges, and exciting opportunities. Reach for your dreams, hopes, and ambitions. Reach for bigger challenges, and exciting opportunities. Reach for bigger challenges, and exciting opportunities. Reach for what’s great for you and your family. Reach for bigger challenges, and exciting opportunities. Reach forwhat’s what’s great for you you and and your your family. family. Reach for great for For happiness and well-being. Reach for what’s great for you and your family. Forhappiness happiness and well-being. For and For aspirations andwell-being. adventures that make life meaningful. For aspirations happiness and For andwell-being. adventures that that make make life life meaningful. meaningful. For aspirations and Because Great is theadventures only thing worth reaching for. For aspirations and make life meaningful. Because Great is is theadventures only thing thing that worth reaching for. Because Great the only worth reaching for. That’s why since 1908, we’ve been by your side helping you Reach for Great. Because Great is1908, the only thing worth reaching for. That’swhy why since we’ve been by your your side helping helping you That’s since 1908, we’ve been by side you Reach Reach for for Great. Great. That’s why since 1908, we’ve been by your side helping you Reach for Great. @greateasternsingapore @greateasternsingapore @greateasternsingapore

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FROM THE EDITOR

PUBLISHER & EDITOR-IN-CHIEF Tim Charlton EDITORIAL MANAGER Tessa Distor PRINT PRODUCTION EDITOR Eleennae Ayson LEAD JOURNALIST Olivia Tirona JOURNALISTS Frances Gagua Aulia Pandamsari Ibnu Prabowo GRAPHIC ARTIST Emilia Claudio COMMERICAL TEAM Janine Ballesteros Jenelle Samantila Cristina Mae Posadas

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nalysts shed their perspectives on the current insurance landscape and predictions for next year, with new regulations shaping the protection industry in this edition. Insurers in Sri Lanka and South Korea are shadowed with higher risks from regulatory changes which can be seen on page 6 and 28. On the other hand, Vietnam and Hong Kong show promising outcomes for small business owners and policyholders, on pages 8 and 10, respectively. In this issue, we are glad to have insights from three CEOs. Raymond Ong of Etiqa shares his insights on investment and risk-taking, which can be read on page 18. Pearlyn Phau of Singlife warns of the increasing ageing population and urges insurers for better product development on page 20. Ciputra Life’s Hengky Djojosantoso tells about the value of debt protection, viewable on page 22. Furthermore, we spotlight innovative solutions for day-to-day operations. Zurich Indonesia's exploration of AI in expediting appraisal processes and its potential applications are thoroughly explored on page 14. Additionally, AccelTree introduces InsurSaathi, a groundbreaking platform designed to streamline the onboarding of new agents, detailed on the respective page. Lastly, the Insurance Asia Awards returns for its 8th year to laud dedicated and innovative insurers. They have lead the way in coping with significant industry changes, and have reimagined their offerings and perspectives. Check out the list of winners on pages 32 to 39. May we all succeed in our endeavours.

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INSURANCE ASIA 1

CONTENTS

EVENT DEDICATED AND INNOVATIVE INSURERS LAUDED AT INSURANCE ASIA AWARDS 2023

FIRST 04 Intermediaries fail to impress datasharing Singaporeans 06 Risks escalate for Sri Lankan insurers—Fitch 08 SMEs uninsured against geopolitical shifts 10 Mixed fortunes for Hong Kong's insurance market in coming years

ANALYSIS 12 Insurers sweat toward faster risk mitigation amidst the hottest year yet

Published bi-annually by Charlton Media Group 101 Cecil St. #17-09 Tong Eng Building 2 INSURANCE ASIA Singapore 069533

CEO INTERVIEW 18 5 challenges the insurance market must be wary of 20 Empowering customers is key to industry sustainability 22 Ciputra Life goes beyond its captive market

INTERVIEW 24 Millennials boost Allianz's younger insured reach 26 Insurance access hinges on sustainability fixes

PRODUCT WATCH ZURICH INDONESIA'S AI UPGRADE SPEEDS UP VEHICLE POLICY ISSUANCE

INSURTECH WATCH HOW INSURSAATHI FAST-TRACKS AGENT ONBOARDING IN RURAL INDIA

COUNTRY REPORT 28 New accounting rule may strain capital reserves 30 PSAK 74, transforming insurance practices in Indonesia for the better

EVENT 32 How customer centricity aids narrow market penetration 33 Outdated systems cause data breaches, stunt market

COMMENTARY 60 Insurance's role in the transition to a low-carbon global economy 64 Cyber insurance can't do it alone

For the online versions of the insurance stories, visit the website

insuranceasia.com

INSURANCE ASIA 3

FIRST

Singaporeans see data-sharing as necessary for personalised plans (Photo by Anete Lusina on Pexels)

Intermediaries fail to impress datasharing Singaporeans SINGAPORE | by Olivia Tirona

ingaporean insurance policyholders hesitate to fully trust insurance intermediaries, yet are willing to share more data for detailed insurance plans. “The future of insurance products will be increasingly tailored to each individual customer’s needs, with insurers using dynamic pricing amongst other methods to guide customers to the right product, at the right time and place, with the right premium,” Lance Levy, CEO of Capco, said. In assessing the potential impact on the sentiments and actions of consumers, SMEs, and corporates, nine scenarios representing breaches of trust were examined. These include instances where an insurer or intermediary commits a product or service error, engages in actions that contradict the company's stated values or personal values, and features news about poor working conditions or legal/ regulatory breaches within the organisation. Additionally, breaches such as a data breach exposing confidential information, disputes over practices, market conduct, or service standards with the insurer or intermediary, further contribute to understanding the dynamics of trust in the industry. About 90% of the 1,000 Singapore policyholders surveyed said they are willing to share additional personal data with insurers for various advantages. Improving the claims process is the main incentive (49%), followed by lower premiums (46%), and personalised services (45%). Levy goes on to add that insurers that can integrate data and technology into their business strategies will stay ahead of the game. 4 INSURANCE ASIA

The Insurance Culture and Conduct Steering Committee (ICCSC) reported that, despite varying levels of trust among Singaporeans in life insurance companies, the inaugural Insurance Trust Indicator Study (ITIS) found room for improvement in the industry. The study, chaired by Khoo Kah Siang of the ICCSC, emphasised the financial and reputational benefits for organisations fostering strong trust among stakeholders, as highlighted in the ICCSC and MAS study. Data handling preferences Capco's 2023 survey reveals that 76% of respondents desire personalization in long-term savings products, 74% in life insurance, and 73% in health insurance, offering a substantial opportunity for insurers to innovate and align products with customer expectations. Additionally, the majority of claimants (81%) expressed satisfaction with their claims experience, while concerns for the less satisfied included slow responses, delayed payouts, and excessive paperwork, and 76% of insurance app users reported a positive experience. However, 23% describe it as “satisfactory” whilst 1% who say it is “poor” cited issues like user-friendliness and sluggishness. Users express interest in features like doctor appointments (32%) and health resources (32%) on insurance apps. Heart rate monitoring (29%), nutrition tracking (28%), sleep tracking (28%), and mental health

coaching (27%) also attract attention. Older adults (55-65 years) show greater interest in heart rate monitoring at 36% versus 25% among young adults (18-34). Capco’s Singapore survey covered policyholders aged 18 to 65, capturing insights into attitudes towards insurance, preferred purchasing methods, decision-making factors, claims processes, insurance app preferences, and willingness to share personal data. Whilst traditional channels like agents remain popular for insurance purchases, many respondents are open to sharing data for personalised products. Around 43% are open to sharing data via wireless wearables like smartwatches. The same percentage considers sharing data through a fitness test, and 38% through smart home devices. Key decision factors for insurance purchase include affordability of premiums (51%) and value for money (45%). “The volume of data potentially available to insurers has grown exponentially. Whilst they recognise the importance of being data-led, customer-centric and tech-focused organisations, they have yet to master translating data at speed into impactful insights and actions,” Erienne Wong, managing principal at Capco Singapore, said. Brand trust (37%) and the ability to meet customer needs (37%) also play crucial roles. When making purchases, 64% prefer agents, whilst 23% choose third parties, and 13% purchase insurance independently. “With the right data and technology capabilities in place, insurers can rapidly create more innovative and personalised products to help them better compete,” Wong added. How much trust there is In terms of type, life insurers demonstrated robust trust levels with businesses (77 CTIS) and slightly lower trust levels with consumers (68 CTIS). General insurers exhibited strong trust levels across both groups, with overall trust indicator scores ranging from 68 to 80, while insurance intermediaries were perceived to have moderate trust levels, with trust indicator scores ranging from 68 to 74. Conducted by Forrester over three years, the ITIS aims to identify areas for improvement in trust amongst life insurers, general insurers, and insurance intermediaries (agents, brokers, financial advisers) in Singapore. The survey, conducted between February and March 2023, involved 2,000 consumers and 500 business employees.

The volume of data potentially available to insurers has grown exponentially, [but] they have yet to master translating data at speed into impactful insights

INSURANCE ASIA 5

FIRST pressures through policy repricing is constrained by the decline in customers' disposable incomes. Moreover, the heightened investment risks and earnings pressures could have a ripple effect on insurers' regulatory capital profiles. In the event of a substantial deterioration in the credit profiles of financial institutions, regulatory risk-based capital (RBC) ratios may plummet. This is because investments will be subject to incremental risk charges, as dictated by local regulatory RBC rules.

FITCH PREDICTS 2024 LIFE INSURANCE PROFITS REBOUND JAPAN | by Olivia Tirona

apanese life insurers are expected to maintain strong credit fundamentals in 2023, but there is caution due to lingering monetary risks. Japan’s upward trend in its cost of living underscores the expanding price pressures and strengthens the argument for the central bank to scale back its substantial monetary stimulus. Despite various challenges, the ratings agency foresees a resurgence in overall profitability for Japanese life insurers in 2024, driven by the recovery in underwriting profitability following the easing of pandemic-related restrictions by the Japanese government in May 2023 and the revision of the "deemed hospitalisation" rule. Losses from hospitalisation In 2023, aggregate core profits at the nine traditional Japanese life insurers declined to $10b (-41% year-on-year, JPY1.54t) primarily due to significant insured losses — a result of deemed hospitalisation related to the Omicron variant of COVID-19. “We expect the life insurers’ capital adequacy to remain sufficient for their ratings for some time, largely due to steadily accumulated core capital,” reported Teruki Morinaga, director at Fitch Ratings Japan, and Susumu Hatakeyama, senior analyst at Fitch Hong Kong. “In addition, most Japanese life insurers are making efforts to reduce interest-rate risk to better cope with Japan's new regulatory regime, which will be introduced in 2025,” they said. As of the end of March 2023, the aggregate statutory solvency margin ratio for Japanese life insurers remained at a high level of 955%, slightly lower than the previous year’s ratio of 999%. But the near future holds promise. Domestic underwriting profitability of Japanese non-life insurers is seen to return to pre-pandemic levels from the fiscal year ending 2024, said Fitch Ratings in the commentary.

6 INSURANCE ASIA

Sri Lankans protest against recent unfavorable regulations (Photo by Girts Ragelis on Shutterstock)

Risks escalate for Sri Lankan insurers — Fitch SRI LANKA | by Olivia Tirona

nfavourable government regulation has intensified operating risks for Sri Lankan insurers, compounded by the country's weakened credit profile and the subsequent downgrading of national ratings for key institutions, highlighted in a special report by Piumi Weerasinghe, senior analyst at Fitch Ratings. This is particularly worrisome as these insurers predominantly hold investment portfolios heavily weighted with fixed-income securities issued or guaranteed by the government, as well as deposits and securities from local banks, non-bank financial institutions, and corporations. Compounding the issue is the scarcity of foreign currency liquidity within Sri Lanka's local banking system. Insurers' ability to meet foreign-currency obligations at risk in tough financial climate Rising motor spare parts costs, primarily fueled by currency devaluation, are anticipated to squeeze underwriting profits for non-life insurers, whilst both life and nonlife insurers are expected to face an overall cost escalation exacerbated by mounting inflation. Unfortunately, the insurers' capacity to alleviate these

Piumi Weerasinghe

The insurers' capacity to alleviate these pressures is constrained by the decline in customers' disposable incomes

Debt restructuring to ease risks The Sri Lanka's government debt restructuring aims to reduce investment and liquidity risks for insurers, sparing their local currency debt. This is a component of a larger debt sustainability strategy, impacting Sri Lanka Development Bonds (SLDBs) but leaving foreign debt, including international bonds, still awaiting restructuring. It is worth noting that only a small number of Fitch-rated insurers have exposure to SLDBs or ISBs, which represent less than 5% and 0.2%, respectively, of the total invested assets of Fitch-rated insurers as of the end of March 2023. The government has presented three options for treating SLDBs, with the impact of any present-value losses on capital dependent on the choice made by each insurer. However, strong capital buffers maintained by Fitch-rated insurers would help cushion any negative effects resulting from these losses. Sri Lankan insurers' investment and liquidity risk profiles are closely intertwined with the sovereign, banks, and non-bank financial institutions. The limited availability of foreign-currency liquidity in the local banking system is expected to persist, restricting insurers' capacity to meet foreign-currency obligations, including reinsurance payments and claims from foreign currency-denominated policies, which represent a small portion of their obligations. Fitch-rated insurers usually reinsure most of their foreign-currency insurance contract obligations and maintain foreign-currency deposits with local banks to support their foreign-currency commitments.

INSURANCE ASIA 7

FIRST result of the ongoing geopolitical shift. As manufacturing activities ramp up to meet increasing demand, building resilient supply chains is a businesscritical priority,” My Thien Nguyen, country leader and head of Corporate Risk & Broking at WTW Vietnam said.

APAC RANKS AMONGST TOP CYBER INSURANCE MARKETS APAC | by Olivia Tirona

sia Pacific (APAC) is seen as one of the fastest-growing regions for the past five years, alongside Latin America, in terms of primary cyber insurance market, as reported by S&P Global Ratings. The compound annual growth rate (CAGR) of APAC for primary cyber insurance and reinsurance for the 2018-2022 period respectively grew to 51.2% and 43.4%, in contrast with the global rates of 36.2% and 59%, respectively. Latin America was also cited for its growth, whilst North America and Western Europe posted slower expansion due to their larger market. “About 56% of gross premiums written (GPW) on affirmative cyber insurance--which explicitly covers cyber risk--are generated in North America; about 37% in Europe, the Middle East, and Africa; 6% in Asia-Pacific, and 1% in Latin America,” S&P Global said. Opportunities and potential impact Cyber insurance is experiencing rapid growth within the global insurance market, S&P Global said. In 2022, global premiums reached approximately $12b, and it has been projected to continue its upward trend at an average annual rate of 25% to 30%, reaching around $23b by 2025. This is supported by reinsurance protection, making reinsurers crucial for the sustainable expansion of the cyber insurance market. Whilst opportunities are evident, there is a need to understand the underwriting risk associated with cyber coverage. “Insurers and reinsurers are not immune to cyberattacks on their operations, and any service disruptions or data breaches will likely affect their bottom lines and potentially their capital positions,” S&P Global stated.

8 INSURANCE ASIA

SMEs directly bear any impact on supply procurement and currency stability (Photo by Hiep Nguyen on Unsplash)

SMEs uninsured against geopolitical shifts VIETNAM | by Olivia Tirona

majority Vietnam's small and medium-sized enterprises (SMEs) are grappling with the need for more comprehensive insurance coverage to mitigate risks arising from ongoing geopolitical shifts. A recent survey by WTW, a prominent advisory and insurance brokerage firm, reveals that only 18% of these enterprises feel prepared to confront current and future challenges. This unpreparedness is particularly pronounced in the manufacturing sector, which makes up a third of the SME landscape in Vietnam. The country navigates a changing macroeconomic landscape driven by factors like potential challenges from sustained high US dollar interest rates and geopolitical fragmentation, prompting domestic companies to diversify supply chains. These changes offer both challenges and opportunities in Vietnam's evolving economic environment. “With SMEs forming the backbone of the economy, Vietnam is also uniquely placed to take advantage of increasing multinational corporations’ (MNC) expansions in the country as a

My Thien Nguyen

Companies need to work with data, technology and analytics to support proactive risk management and smarter decision-making

Assessing coverage pricing “Whilst most organisations recognise the importance of insurance, the challenge now will be to develop an equitable approach that allows them to identify and fill the gaps where they are un- or under-insured whilst at the same time balancing the cost of their coverage. Addressing the lack of data to assess the operational risks and their impact will be key to achieving this,” according to Nguyen. Other than emphasising the need for risk protection, only 32% of the organisations said their typical insurance products are not enough to meet the business risks. “Organisations are also challenged by pricing, with close to half (48%) considering pricing unpredictability and high cost as the major weaknesses of their current insurance products,” the WTW report said. Covering 100 Vietnam-based companies, results also showed that nearly half of the organisations (44%) possess only a basic understanding or face challenges in comprehending their current risks and their financial implications. The number rises to 58% when it comes to emerging or new risks expected within the next two to five years. The main hindrance to better risk comprehension is the lack of relevant empirical data, identified by 58% of the organisations as a potential weakness in their risk assessment process. Additionally, 42% of the companies lack a defined methodology to quantify the financial impact of risks, leading to inadequate risk management measures. Further, a quarter of the organisations (26%) do not have a formal process in place to establish risk appetite or tolerance. “Companies need to work with their risk advisors using data, technology and analytics to support proactive risk management and smarter decision-making so that they can be better prepared with sufficient insurance coverage to keep their businesses afloat and resilient to future risks,” Nguyen said.

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FIRST “Large shifts in Hong Kong's population profiles point to the need for higher insurance coverage across life stages — including medical, mortality, and retirement,” Chen said.

New business growth in HK may encourage demand for insurance (Photo by Jimmy Chan on Pexels)

Mixed fortunes for Hong Kong's insurance market in coming years HONG KONG | by Olivia Tirona

he Hong Kong life insurance market is set to improve and stabilise its earnings over the next two years, but industry players should expect a bumpy journey, an expert at Global Ratings said. Judy Chen, credit analyst at S&P Global, said that one of the drivers of Hong Kong’s insurance segment was visitors from the mainland, so sales were expected to maintain a strong standing until the first half of the year. S&P also predicted Hong Kong’s new business growth for the life segment to climb 20% to 25% by year-end before slowing down to 10% to 15% in 2024. Meanwhile, the property and casualty (P&C) market is “less volatile” and seen to keep a little above 5% in the next two years. Mainland's strong demands “Hong Kong’s geographic proximity provides an opportunity for its insurers to better serve the mainland’s underpenetrated market,” Chen said. In February this year, cross-border travel fully resumed, leading to a significant increase in the average case size of new life policies for mainlanders. During the first quarter of 2023, the average case size more than doubled to around $36,699 (HK$280,000), compared

10 INSURANCE ASIA

to $16,065 (HK$126,000) in 2019 prior to the pandemic. Mainland China customers are attracted to Hong Kong due to several factors. These include a widening interest rate differential, opportunities for asset diversification, and access to comprehensive healthcare. Hong Kong insurers offer savings and investment policies in foreign currencies, as well as more detailed critical illness and medical insurance options compared to their mainland alternatives. Sales have shown a strong rebound, but they have not fully recovered to pre-COVID levels. In the first quarter of 2023, new-business premiums from the mainland experienced a significant surge to HK$9.6b ($1.2b), compared to HK$345m in the same period the previous year. However, this is still below the quarterly average of $1.6b (HK$12.3b) recorded between 2015 and 2019. Likewise, the moving demand for insurance in Hong Kong was said to be partly attributable to its ageing population and the protection gaps that exist.

P&C growth slow P&C insurers are expected to experience smaller gains compared to other sectors. The growth prospects for this sector will be driven by the complete resumption of economic activities. As travel resumes, there will be an increase in demand for accident and health insurance policies. Furthermore, the strengthening ties between Hong Kong and the mainland will generate new demand for cross-border coverage, including motor insurance policies that cover the Greater Bay Area. During the pandemic, underwriting results in the insurance industry were remarkably strong due to reduced traffic and fewer claims. However, the forecast is that the combined ratio, which measures underwriting profitability, will revert to its historical average of around 95% over a 10year period, compared to 90% in 2022. A combined ratio below 100% indicates that the underwriting operations are profitable. Recovery is not linear Customer preferences will vary based on brand reputation and service quality, which are areas where large insurers excel. Traditional distribution channels such as agents and banks continue to play a crucial role in the life insurance market. Insurers like AIA International Ltd. and Prudential Hong Kong Ltd. — companies that invested in and maintained their agency forces during the pandemic — have benefited from the return of visitors, according to S&P. However, less mainstream insurers may face challenges in preparing for a sales recovery due to their limited economies of scale. These tend to incur higher costs in distribution, technology, compliance, and product development. Regardless of size, all insurers should be cautious about the increasing reliance on offshore business. This could expose them to greater volatility and vulnerability to capital outflow controls and spillover effects from mainland China. Whilst business growth with mainland China presents opportunities, it also carries inherent risks, Chen said.

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ANALYSIS: INSURANCE PROTECTION

Insurers sweat toward faster risk mitigation amidst the hottest year yet Experts shared the reality of cost-efficiency whilst minimising the protection gap. APAC | by Olivia Tirona

he year 2023 has officially become the hottest year on record, driving emphasis on risk mitigation measures for safeguarding vital assets, with insurers increasingly supporting and advocating for risk engineering. “Typhoons Saola and Haikui have already caused significant damage, whilst other parts of Asia are suffering from drought and continued extreme heat. Wildfire and associated haze are of particular concern too,” Christopher Au, director of climate and resilience hub, Asia Pacific, Willis Towers Watson, said to Insurance Asia. Similarly, Steve Bowen, chief science officer of Gallagher Re, foretells the creeping uncertainty nature’s wrath could bring. “It has already been a highly impactful year for natural perils across Asia-Pacific (APAC) and the rest of the world. With the continued influence of a strengthening El Niño, we will likely keep recording more unusual behaviour of the jet stream and broader weather patterns that influence the intensity of heavy rainfall or drought conditions, the intensity and trajectory of tropical cyclones, and the prospect of further temperature extremes,” Bowen told Insurance Asia. Climate challenges Aon's Weather, Climate, and Catastrophe Report: Asia Pacific 2023 emphasised the ongoing necessity to enhance resilience through the implementation of successful adaptation strategies and the enhancement of disaster management and warning systems, as evidenced by the numerous extreme weather records shattered throughout the year. Globally, initial economic loss driven by natural causes amounted to US$77b for the first three months of 2023. Only 29% of the total losses were insured by public and private entities, reinsurance broker Gallagher 12 INSURANCE ASIA

Heavy flooding in Chittagong, Bangladesh is part of the extreme weather patterns in 2023 (Photo by amdadphoto on Shutterstock)

Whilst we continue to see improvements in regional take-up rates, a lot of natural hazard damage costs remain uninsured

Re said in a separate report. Last year, the Asia-Pacific alone saw US$80b worth of losses from nature’s fury, where 86% were uninsured, as cited by Aon. About 7% of the total economic losses were natural catastrophes that hit Asia. This was also equivalent to US$5.39b of the world’s total. According to the analysis conducted by the European Union's Copernicus Climate Change Service, the global temperature for this year is projected to exceed preindustrial levels by more than 1.4 degrees Celsius. “Recent data strongly indicate 2023 is set to be the hottest year on record. The impact of El Nino is one of the big outstanding questions. New levels of heat have been recorded across Asia, both in land and in marine ecosystems,” Au said. The EU's analysis warns of perilous proximity to the 1.5-degree threshold set by the Paris climate agreement, with record-breaking temperatures in November surpassing 1.75 degrees above pre-industrial levels, raising significant concerns about future planetary implications among scientists. Escalating since June, these temperatures even exceeded the 2-degree mark on two occasions,

highlighting formidable challenges for humans and ecosystems beyond this limit. For Singlife’s Richard Vargo, group head of products, Propositions and Transformation, climate change demands urgent attention, with insurers necessary to be wary of its risks and opportunities. “Adopting a proactive approach to risk management allows insurers to safeguard policyholders from losses and ensure the accessibility of insurance products in the long term, ultimately reducing the overall cost of insurance. As insurers, we must remain vigilant in addressing these challenges,” Vargo explained. Where we stand The severity of natural calamities in the APAC this year has rendered insurance protection less viable, widening the gap, yet insurance experts remain optimistic, emphasizing that the situation is not entirely hopeless despite uninsured losses being vulnerable to circumstances and economic headwinds. Bowen indicated that the region cradles various rates of insurance take-up along three major markets: residential, commercial, and

ANALYSIS: INSURANCE PROTECTION Economic losses vs insured losses in 2022

Steve Bowen

Aon Weather, Climate and Catastrophe Report: Asia Pacific Insights 2023

automobile. “Many countries are still in the process of expanding their insurance frameworks on the residential side in particular, which means that whilst we continue to see improvements in regional take-up rates, a lot of natural hazard damage costs remain uninsured,” Bowen said. In the first half of 2023, initial estimates revealed total direct economic losses of US$138b from extreme calamities, with only US$52b covered by insurance, resulting in a significant protection gap of US$86b (63%). China bore notable losses of US$5.3b, with 55% attributed to flooding. Yunnan, China, faced severe drought in early spring, Southern Taiwan grappled with its worst drought in 30 years, and El Niño-induced dry weather affected Southeast Asia. WTW’s Au highlighted that total losses from natural catastrophes include both direct impacts, such as property damage and business interruption, and indirect consequences, yet companies often find it economically impractical to insure against all conceivable losses. “Only risk which cannot be treated is transferred, so in this sense, there will always be a protection gap,” accroding to Au. Aon’s report identifies weather volatility in the region as the primary challenge due to the escalating impacts of climate change, encompassing extreme temperatures, rainfall, floods, droughts, fires, cyclones, and storms, emphasising that closing this gap necessitates a collaborative approach involving insurers, governments, public policy, and risk-taking capital sources.

The alarming 86% protection gap in 2022 underscores not only the vulnerability of communities in the region but also the potential for innovative solutions. “This points to a growing challenge for the insurance industry to meet the rising costs of climate change-linked disasters,” Vargo said. Weathering key issues “The key will be further building insurance product availability,” said Bowen of Gallagher Re. “Offerings, such as parametric insurance, are proven to be effective in helping lower the region’s large protection gap,” Bowen said the rise of publicprivate partnerships has been a very beneficial step forward in establishing more financial stability and protection as disaster costs continue to increase. Singlife's Vargo underscores IBM's comprehensive Insurance Process and Service Models, particularly highlighting the adoption of parametric insurance products that integrate catastrophic event impacts with insurance and reinsurance operations. This approach involves computer-assisted calculations to estimate potential losses from events like hurricanes or earthquakes, proving valuable for assessing risks in specific locations through the integration of actuarial science, engineering, meteorology, seismology, and big data analytics. Whilst the International Association of Actuaries primarily focuses on reinsurance processes from a cedent's perspective, the incorporation of catastrophe

Richard Vargo

Christopher Au

Adopting a proactive approach to risk management allows insurers to safeguard policyholders from losses

modeling introduces similar processes beneficial for both cedents and reinsurers. Vargo also emphasised that financial services and insurance providers are uniquely poised to offer comprehensive assessments of the probability and consequences of disaster events, spanning various magnitudes. “Whether it be crafting underwriting solutions for potential climate hazards, analysing damages and claims patterns to anticipate natural disaster trends, or sending risk signals that promote behavioural changes in the industry – we are here to make a real difference,” Vargo said. In alignment with Bowen's partnership sentiment, Vargo notes that insurers are collaborating with reinsurers, benefiting from reduced exposure to large-scale disasters, diversified portfolios, stabilised earnings, and optimised capital efficiency. In Singapore, public and private entities predominantly use property insurance for natural disaster-related losses, whilst other parts of Southeast Asia face challenges like low insured losses due to factors such as limited awareness, inadequate insurance infrastructure, and the potential for disasters to exceed policy coverage limits, creating a "protection gap." Au of WTW said that despite the cost-efficiency and potential for stimulating entrepreneurship that pre-arranged finance through insurance offers, there are significant barriers to wider adoption. These barriers stem from both functional and behavioural factors. Many companies perceive insurance as a cost that eats into profitability, rather than viewing it as a valuable service that is essential, regardless of whether claims are made. These concerns about getting value for money can become even more pronounced after several years without a payout. “Insurance market pricing also puts pressure on companies. The market is currently in a higher pricing cycle, which is driven by the recent global insurance performance in terms of volume of claims, as well as wider macroeconomic concerns.” Au stated. INSURANCE ASIA 13

PRODUCT WATCH: APPRAISAL SYSTEM

Zurich Indonesia's AI upgrade speeds up vehicle policy issuance AI streamlines appraisal and is part of the insurance firm’s P&C business growth, which experienced a remarkable 20% growth in GWP during Q1 of 2023. INDONESIA | by Aulia Pandamsari

Vehicle insurance is a key product of Zurich Indonesia (Photo from Pexels)

urich Indonesia has taken a bold step towards enhancing their vehicle appraisal process by embracing Artificial Intelligence (AI). Through this new technology, the conventional manual survey method for used cars and new vehicles is getting a much-needed upgrade, promising improved efficiency and accuracy. In an interview with Insurance Asia, Edhi Tjahja Negara, main director of Zurich Indonesia, acknowledged that manual surveys are prone to such challenges as timing, data accuracy and human error. AI assistance addresses these and hastens the evaluation process. “One thing we understand from customer needs is data accuracy and process simplification. We saw an opportunity in the vehicle survey step to issue a policy and partnered with CamCom, an AI-based technology provider company," he said. With AI at the core of their appraisal system, Zurich Indonesia aims to set new industry standards, delivering quicker and more reliable policy issuance for their valued customers. Edhi explained that since the survey process could be performed automatically by agents and surveyors, the streamlined process

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This allows us to determine the appropriate protection value, more quickly, accurately, and reduces human error.

Edhi Tjahja Negara

allows for a faster and more accurate inspection report. “This allows us to determine the appropriate protection value, more quickly, accurately, and reduces human error. Customers can also get an insurance policy on the same day,” according to Edhi. It will also have a positive impact on company performance. Through better and faster services in realtime to customers. “Policies can be issued more quickly which leads to improvements in business,” he said. Contribution of vehicle insurance Vehicle insurance is crucial for Zurich Insurance’s property and casualty (P&C) business. This product serves as the largest contributor to gross premium income and company growth. Furthermore, Indonesia’s general insurance GWP in 2022 grew 15.3% year-on-year (YoY) with the second largest contributor coming from vehicle insurance. “We also believe that there is further potential for vehicle insurance, as fourwheeled vehicles sales are still growing so that there are still many drivers who will benefit from insurance protection,” Edhi said.

Potential and challenges AI has proved to be useful in various ways, starting from reading forms automatically and using large language models (AI large language models), to the use of calculating risks and understanding customers better. “At the moment, our focus is on applying these AI tools in our and our auto insurance surveys, and we plan to expand it for customer activities in the future,” Edhi said. However, this process still faces challenges, particularly in terms of integrating with IT services and systems. “We believe that AI works best alongside human expertise.” Meanwhile, the company acknowledges the importance of data security in this regard. “It is very important that customer and company data is always safe and protected, so if we are considering the use of large language models (AI large language models), this needs to remain in the private domain with strict monitoring and control. As a company, we are developing an assurance framework for use with AI,” Edhi said. The second challenge lies in the adaptation process of company employees. “Along with the introduction of new technologies and developments, we provide ongoing training to our agents, surveyors, and internal employees prior to the introduction of this tool. We will continue to socialise new technological innovations to customers that will provide added value,” he explained. So far, Zurich Indonesia has served more than 3.5 million customers. In Q1 2023, the P&C business recorded a growth of 100,000 customers with a gross premium growth (GWP) of 20%. “We hope our focus on customers and continuing to innovate will continue our success for the rest of the year,” Edhi concluded.

CLAIMS INITIATIVE OF THE YEAR - INDIA

Navigating smoothly with ICICI Lombard’s Motor Claims Process

ICICI Lombard is revolutionising the insurance industry, having embraced new regulatory reforms and cuttingedge technology with digital initiatives that simplify claims processes as well as ensure efficiency and security.

n the age of digital transformation, industries of all kinds are reimagining the way they operate. The insurance sector is no exception, leading the charge in making insurance processes more accessible and efficient. ICICI Lombard is at the forefront of embracing new regulatory reforms and initiatives to enhance services and uphold best practices. With a commitment to transparency and customer-centricity, the company has introduced several measures to comply with evolving regulations whilst ensuring optimal customer experiences. These initiatives encompass advancements in digitalisation, making insurance processes more efficient and accessible for customers. Additionally, ICICI Lombard has focused on risk management and governance frameworks, aligning its practices with the latest regulatory guidelines. The company's emphasis on responsible underwriting and claim settlement practices further reinforces its commitment to ethical conduct and customer trust. By proactively embracing regulatory reforms, ICICI Lombard demonstrates its dedication to maintaining industry standards and its position as a reliable and responsible insurance provider in the market. Traditionally, filing a motor insurance claim involved a fair amount of paperwork and lengthy processes. However, ICICI Lombard's initiatives have changed this. Today, policyholders can initiate their motor insurance claims with just a few clicks. Technology lies at the heart of the company’s operations. Its one-stop digital solution, the IL TakeCare app is a prime example of its technological advancements. It offers 24/7 assistance and policy-related information, all within a user-friendly interface. ICICI Lombard’s other services like "InstaSpect," the pioneering mobile self-inspection feature, showcase ICICI Lombard's holistic approach to embracing technology. These services underscore the company’s unswerving dedication to delivering a seamless and efficient claims settlement process, all whilst adhering to its hallmark of exceptional customer service. Moreover, its efficient use of technology streamlines claims settlement processes. ICICI Lombard's digital claims process thrives on transparency and responsiveness.

Policyholders receive timely updates on their claims, putting them in the driver's seat of their insurance experience. Security is paramount in the digital realm, especially when dealing with sensitive data. ICICI Lombard implemented robust security measures to protect policyholders' information. This commitment to data security ensures that policyholders can use the platform with confidence. It also fosters trust and ensures that policyholders are well-informed throughout the process. Future-Ready Approach ICICI Lombard's digital motor claims process is not just about convenience today; it is also about preparing for the future. The company continually invests in technology and user experience enhancements to stay ahead of the curve.This approach ensures that policyholders will benefit from more streamlined and efficient processes as technology evolves.

Gaurav Arora – Chief - Underwriting & Claims Property & Casualty, ICICI Lombard

The company recently unveiled its latest technological innovation, the "Cloud Calling" feature. It is designed to reshape customer communication during the process by enhancing the customer experience, expediting claims settlements, and underscoring its commitment to meet the evolving needs of its customers. "Cloud Calling" introduces a shift in how claims are managed and settled. In the conventional process, multiple telephonic communications between the Customer Service Manager (CSM) and the customer were required, causing potential delays and inefficiencies. Recognising this challenge, ICICI Lombard empowers customers and claims managers with a dedicated virtual number for

seamless communication. This transforms the claims journey into a smooth, transparent, and well-coordinated process. Empowering Customers with Single Contact Point The merits of this innovation are multifaceted, offering benefits that encompass the entire claims lifecycle. Customers now have a single contact point to reach their designated CSM. Call connectivity is streamlined with a comprehensive call-tracking platform, enhancing transparency and accountability. The virtual number allows for automatic redirection to the appropriate manager in the event that CSM is occupied, ensuring no customer query is unattended. Additionally, the feature includes call recordings, providing insightful data for analysis and continuous improvement in customer interactions. Since its inception, the "Cloud Calling" feature has connected over 4 lac customers, providing immediate support and addressing 95% of customer queries regarding the claims process. ICICI Lombard's digital motor claims process is a testament to its dedication to customer satisfaction and innovation. By putting the power of claims initiation and tracking in the hands of policyholders, it not only simplified insurance but also set a high industry standard. As the digital landscape continues to evolve, we remain at the forefront, reshaping the insurance experience one digital claim at a time. Speaking about their win at the Insurance Asia Awards, Gaurav Arora, Chief of Underwriting & Claims Property & Casualty at ICICI Lombard, said: “We are very excited to have been recognised for ‘Claims Initiative of the Year - India’ and would like to thank the jury of Insurance Asia Awards 2023 for this award. It is a testimony to our team's relentless pursuit of innovation and passion for crafting customer-centric solutions. With evolving consumer needs, we envisioned our Motor Claims processes to not only address a logistical challenge but also significantly elevate the customer experience. As India’s leading private general insurance company, we endeavour to provide technology-led innovative solutions to serve and delight our customers."

We envisioned our Motor Claims processes to not only address a logistical challenge but also significantly elevate the customer experience INSURANCE ASIA 15

INSURTECH WATCH: INSURSAATHI

InsurSaathi fast-tracks agent onboarding in rural India Its integrated platform comes with an in-built insurance training module to empower agents for microinsurance success. INDIA | Frances Gagua

here are over a million insurance agents active in India, but most of its population remains underinsured. Increasing the number of policyholders can be solved by offering microinsurance products and training more agents to offer these to the public. But building a vast enough network may be a challenge even for the biggest insurers, and ensuring that all agents are ready for deployment can be a time-consuming process. “All insurance providers across Asia have deep agency channels, some running into several thousands of field agents. However, the challenge, when it comes to selling or buying insurance in remote geographies [such as rural India] is the distribution mechanism and delivery costs,” said Edwin David, vice president for sales & marketing at AccelTree. This exact conundrum became the inspiration for AccelTree and its CEO, Vivek Mannige, to launch the InsurSaathi platform, which is a platform aimed specifically at simplifying the onboarding of new agents focused on microinsurance and rural insurance products.

The platform allows policy issuance via a digital copy that can be shared instantly. (Photo from Pexels)

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The insurance industry, not just in India, but in the APAC region, is growing at a frenetic pace and technology is the enabler

InsurSaathi comes with an in-built insurance training module. The training programs are short and easy to complete, and are all online. “The agents select an insurer they wish to represent, complete the required training and thereafter, the application enables the insurer to issue a license as against the certification,” David told Insurance Asia. “The relevant insurance products of the selected insurer are made available to the agent on the mobile phone and the selling process is then initiated.” This offers insurance providers the ease with which new agents are onboarded and trained. It also offers low cost of distribution, since onboarding of new customers will also be remote, David added. Raising awareness “InsurSaathi helps enlist, train, certify and license new agents. It thereafter allows an agent to sell insurance policies with the help of a simple smartphone. It also allows for policy issuance either in printed format or via a digital copy shared instantly,” he said. Data from the Insurance Regulatory and Development

Authority of India revealed that out of 24 life insurers it polled, only seven had any micro insurance products. Reasons for low exposure include the high cost of distribution, and poor awareness amongst locals about the importance of insurance. “The opening of the sector to private insurers some twenty years ago [has left] a noticeable impact, but this has been restricted to the urbanised regions whereas much of rural India is underinsured,” David noted. The National Insurance Academy further supports this, noting in a 2020 study of micro insurance in India that less than 15% of the insurable population was covered under microinsurance. David and AccelTree stress the importance of awareness. Their InsurSaathi app features a comprehensive insurance education section, delivered through a voiceenabled, multilingual chatbot. “Until the need for risk protection is understood, technology will only wait in the wings. InsurSaathi promises a clear departure from insurance being sold to insurance being bought. It is a customer cum agent facing application which allows for easy purchase of a low-ticket sized insurance cover,” David said. Outlook In the future, AccelTree is eyeing more partnerships with micro finance institutions and small finance banks in India to offer InsurSaathi as an extension of these firms’ microcredit risk protection offerings. David also floated their interest in group life insurance, and said that AccelTree is working on a technology solution that will issue insurance policies to large volumes of loanees. As for the insurance industry as a whole, David said that AccelTree plans to continue enlisting a mix of technology and the human element in their future offerings. “The insurance industry, not just in India, but in the APAC region, is growing at a frenetic pace and technology is the enabler,” David said. “But let us also understand that the human element in traditional markets such as Asia cannot be easily replaced. Trust lies at the root of every relationship and technology can only complement this equation.”

INSURANCE ASIA 17

CEO INTERVIEW

5 challenges the insurance market must be wary of

Etiqa's CEO suggests alleviating these with customer centricity and insurance offerings SINGAPORE | Olivia Tirona

he insurance market must stay cautious of the impending global recession, talent management, future-proofing skills, artificial intelligence (AI), and the rapid change in demographics, says Etiqa Insurance Singapore Chief Executive Officer, Raymond Ong. Speaking to Insurance Asia, Etiqa’s Ong said that is the true promise of Etiqa which it aims to uphold through compliant, tailor-fit, digitalised, and customer-centric insurance. He emphasised that it’s all about “humanising insurance.” As a “non-traditional” insurer, Ong advises that insurers alike need to leverage new technologies, explore different ways of reaching out to people, as well as expand insurance into various areas. Etiqa Insurance Singapore is a joint venture between Maybank, Southeast Asia’s fourth-largest banking group with over 22 million global customers, and Ageas, a renowned international insurance group serving 33 million customers across 16 countries and boasting a remarkable 190-year heritage. It strategically embraced digitalisation and innovation as key drivers of success, whilst incorporating human needs in its products – making it an outlier amongst bigger players. From this perspective, Ong talked about Singapore’s insurance industry, and its set of challenges, including changing customer preferences, an ageing population, and the need for technological adaptation and strong compliance. What top issues in the insurance industry should Singapore insurers address first? I think common to all insurance we have is the impending global recession that everyone is talking about. In order to get past that, I think insurance needs to adopt a prudent approach towards investment and risk-taking, and this is what I’ve always been doing. Fundamentally, we believe that if we take a long-term view, the future looks bright for us. Other challenges would be talent management, futureproofing skills, also AI. So, with all the technological advancements and evolving customer expectations, I think training and upskilling of people and employees are necessary. We need to stay ahead and people need to be taught new skills in order to try new technology. In Singapore, particularly, the changing demographics are a big challenge for insurers. We have the fastest, if not one of the [fastest], ageing populations in the world. So, we need to prepare for that very different demographic which will require different insurance solutions. And together with the changing demographic, young people want to buy things differently. So maybe the traditional ways of selling insurance are not going to give us as good a reception as it has in the past 18 INSURANCE ASIA

Raymond Ong, Etiqa Insurance Singapore CEO

where the agents go to customers, and they sell something and the customer buys because of the friendship or they are part of the family. So, Gen Z and the millennials tend to want to do things themselves. But very often, they have no clue how to do it. The education of the public is also a big challenge. But then together with these challenges, there are obviously opportunities. We need to leverage new technologies and new ways of reaching out to people which has not been done in the past. And we need to expand insurance into new areas. As you see, Etiqa is trying to do things differently. Because we do not have the traditional way of doing things, we don't have a huge agency like the giants. But what we have is a digital and API-type approach that is attractive to new partners and new customers. That is what we have been doing well.

We need to stay ahead and people need to be taught new skills in order to try new technology

Can you explain Etiqa’s digital strategies and how they helped you stay ahead in the evolving insurance industry? One of the examples is our partnership with Singtel. Looking back, Singtel Dash signed up with Etiqa because of our Application Programming Interface (API) capability. Through APIs, we are able to allow a seamless interface between our systems and the customer — enabling a more seamless customer experience. The continued investment in technology will be something we can do that will differentiate us from the more traditional companies that either cannot or are not willing to change. So, companies that are bogged down by maybe a very dominant

CEO INTERVIEW We have very little in the way of legacy and we’re willing to try whatever is just best for us and the stakeholders

Investing in APIs creates a seamless interface between systems and customer (Photo from Pexels)

agency channel, for example, will be constrained in how fast they can go digital and sell directly. Even though the market preference may be on paper, and they want something online, this cuts out the middle person a lot more. The bigger players are often unable to meet those customer demands in real life because of the need to ensure their key distribution — which provides the bulk of their business. Etiqa doesn’t have the legacy of a big distribution channel. As I said, we are a new player, effectively in the Singapore market, we have very little in the way of legacy and we’re willing to try whatever is just best for us and the stakeholders. How does Etiqa navigate the regulatory environment while ensuring customer satisfaction and maintaining a competitive edge? As a former regulator myself, compliance is a big part of — what I think should be part of — the DNA of any financial institution. We maintain a zero-tolerance approach and 100% compliance. I think zero tolerance means that we act on every non-compliance that we uncover. What we do is operationalise it by ensuring that we have and continue to have robust internal control. And we have a process to make sure that we are able to comply with all new regulations as they arrive. We also embed in our products the regulations, tailorfitting and dealing with customers. This is to make sure we humanise insurance. We want to make sure that all terms and conditions are clearly explained and settled explicitly. Because insurance is about being in a long-term contractual relationship with customers, it’s important that customers know what they’re getting into. Any exclusions, for example, any terms and conditions are very clear. Last but not least, we need to make sure that we continue to monitor the customer satisfaction level through all customer touchpoints. We have multiple touchpoints with our customers. Whether it’s claims, new business, or customer queries (call centre, WhatsApp, chatbot, etc.,). In all these interactions we make sure we monitor customer satisfaction and we continually incorporate customer feedback to improve when

necessary. We believe that as we go along, we get more feedback and we continue to improve. One day our customer experience is what will differentiate us from others. As a joint venture, how does Etiqa leverage on its partnership with Maybank and Ageas to improve its market position and customer offerings? Being part of the Maybank group, which is an established name in Malaysia and Singapore, helps our brand. Maybank is a ready-made distribution channel for us. The bulk of our business is through Maybank bancassurance, which provides the basic business-as-usual (BAU) level of business that we do. This also allows us to reach the Maybank customer base. Ageas, on the other hand, brings insurance expertise and know-how. They are also one of the oldest insurance companies in the world with a very rich history. We are able to bring the best with Ageas worldwide to the Singapore market and experiment where it is necessary. Ageas, also being an insurer, would be very familiar with the governance and the controls that are needed for a successful insurance business. Surviving for such a long period, Ageas know what they’re doing. It’s a combination of financial strength, insurance expertise, and a brand. As an insurance leader, can you share with us the key achievements you are most proud of? If you look at our progress, since we started effectively in 2014, to be able to reach a mid-market position in the span of 10 years, I think it’s something which is quite an achievement. We have also, through our digital agility, managed a partnership with Singtel. We were chosen as their exclusive life insurance partner over the established market players. We pride ourselves with our digital capability and our agility in being able to do much to achieve. We will continue to build on our knack for a legacy process, which is really our key differentiating factor. Also, Etiqa Insurance Singapore is the only other insurer that is bank-owned. So, we have a ready-made bank distribution. So, we have a source of “business-as-usual” type business and a more transformational ecosystem-type play that will drive the next phase of our growth.

Etiqa aims to address customer demands unmet by bigger insurers (Photo by Fabian Reck on Pexels)

INSURANCE ASIA 19

CEO INTERVIEW

Singlife stays agile in ageing Singapore Pearlyn Phau discusses the complex insurance market and its new pain points in the digital age SINGAPORE | Olivia Tirona

n increasing number of elderly people may be the main customer base for the industry sector in the near future, and the protection industry needs to be ready with a robust product range, urged Singlife Group Chief Executive Officer (CEO) Pearlyn Phau. Approximately one out of every five Singaporeans is presently a senior citizen aged 65 and older. Homegrown insurer, Singlife, includes this vital segment of the population when it comes to product invention. By the year 2030, this percentage is projected to increase to nearly one out of every four citizens, thus classifying Singapore as a “super-aged” society. Consequently, the nation has placed significant emphasis on community, elderly care and financial wellness, ranking them as top priorities within the framework of its healthcare and insurance agenda. Singlife Group’s Phau expressed this concern during an exclusive interview with Insurance Asia. The group CEO also expressed how persevering she is when navigating through Singapore’s complex environment as a seasoned financial services leader. How have Singapore’s regulatory framework and policies influenced the insurance sector, and what steps have been taken to protect consumers and maintain industry stability? We have very frequent interactions with the regulators. Frankly, we’ve always found them to be very fair and firm… with the interests of the consumers and the market at the same time. The insurance industry is tightly regulated as, rightfully, it should be because consumer confidence and the whole financial system will be affected if anything happens to the insurer, or the insured for that matter. We are, after all, a very long-term industry here, not for just a few years, but for lifetimes. Our policy life span is not in a few years, we’re talking about 25 to 40 years. I think the sustainability of the business is a key concern for policyholders, but also for the regulators. The regulators have always encouraged the industry to innovate. For example, from 2 January next year, insurance policyholders will be able to nominate their beneficiaries online. I think there’s still a lot of innovation and a lot of efficiencies that can be injected into the industry, into the processes of how we interact with customers, in terms of customer journeys. And it’s very gratifying to know that the regulators are also very supportive of this and they’re always looking for ways to collaborate with the insurance — on new ideas or new journeys, on how we can make the whole industry a lot more customer-friendly. 20 INSURANCE ASIA

Pearlyn Phau, Singlife Group CEO

I want to applaud the [Monetary Authority of Singapore] in particular for taking a digital approach, which provides greater flexibility and convenience to our customers whilst also ensuring that strong measures remain in place to prioritise customer protection.

We have to continuously be looking to offer a more robust product range to meet their needs at every different life stage

Given your expertise in various aspects of banking, how do you intend to make Singlife a more innovative and agile insurance company? Whether you come from the banking industry, or whether you come from the insurance industry, at the end of the day, we are all in the service industry. It really all boils down to understanding our customers and knowing what will keep them and what they need – even if they don’t know what they need right now. I think we have to be on top of technology. We have to innovate our products, we have to use the latest systems or new systems to meet customer’s needs. In terms of mindset, we have to be agile and adopt technology and innovation constantly. To make the most significant impact on consumers in their financial wellness journey, at Singlife, we have to continuously be looking to offer a more robust product range to meet their needs at every different life stage; and to provide meaningful bundling between integrated insurance and investment solutions. We always say that we don’t believe that their protection and the insurance compensation should be a separate conversation for wealth creation, or wealth accumulation. Integration is important to us.

CEO INTERVIEW We also believe very much in healthcare, especially in the ageing society with an escalating inflationary environment. We are also looking for ways to pioneer innovative health partnership models to enable stronger integration and cost optimisation between the insurer and the healthcare ecosystem. A big part of our distribution network is true financial advisors. We have to continuously look to revamp our financial advisory platforms, both digital as well as face-toface to offer differentiated and curated products. And last but not least, it is important in terms of how we communicate to the customers. In terms of product information, we have done a lot of work and will continue to press on to simplify that. With visual insurance initiatives, try to cut down jargon, and make things in simple English to ensure that our customers’ experience is a fast-free one. Considering your digital banking background, how will you incorporate technology into Singlife’s insurance offerings to improve the customer experience and streamline internal processes?" I believe it is important to keep pace with the needs of tomorrow’s customers. By doubling down on omni-channel capabilities with a focus on digital and mobile offerings. For Singlife, it is empowering our customers and our financial advisors with digital-first touch points like the Single Life app, website revamp, Navigator rebrand to GROW, for example, and enabling analytics and digitised processing and servicing. I plan to continuously ensure that Singlife remains customer-centric and laser-focused on serving our customers’ financial needs by giving them control over next-generation products and services and insights-driven offerings. A few examples of what we have done a lot in is, of course, through partnerships. An example is our partnership with Citibank and Black Rock. We are providing customers with a complete portfolio management capability to improve efficiencies, automate controls, and enable a seamless back-tofront experience. Our customers will receive better investing experiences throughout the stages of their investment journey. These are some of the things that we have been doing. We’ve also been looking to enhance our tech stack so that we can be a lot more responsive when we talk about product development. We’re in fact, Amazon Web Services versus insurance clients globally, to migrate our entire information technology infrastructure to the cloud. These are some of the backend enhancements that will go a long way towards improving the front-end customer experience. With the future in mind, what are Singlife’s goals and vision, and how does the company plan to meet evolving customer needs and industry expectations in Singapore? At Singlife, our vision is to be a technology-empowered financial services company committed to a better way for people and our community in Asia. We are driven by the purpose of being the better way to financial freedom by enabling our customers to control their financial well-being at every stage of their lives. To address our customers’ evolving needs in the long term, we are keenly focused on five key areas that we believe will make a substantial impact: the importance of placing our customers first, innovating for the better, leveraging technology, preparing our people for the future, and operating

We are driven by the purpose of being the better way to financial freedom

sustainably to create long-term value. Lastly, can you share with us your experience as a leader in Singlife and as a seasoned professional who has been in the insurance industry for many years? My career has spanned roles from consumer banking and wealth management to private and digital banking in Singapore and Hong Kong. Since my appointment as Group Chief Executive Officer and Executive Director of Singapore Life Holdings Pte. Ltd. and Singapore Life Ltd. in August 2021 my goal has been to build a new type of insurance company post the merger of Singlife and Aviva — one with the reach and scale of a wellestablished and deeply trusted brand but with the agility and innovation of a younger, more nimble start-up. I am excited to have the opportunity to make an impact and shape the development of a business that is very much connected to the lives of many Singaporeans. I also have the privilege of leading a dynamic team that is deeply passionate about reimagining the insurance industry. Singlife’s commitment to innovation and customer-centricity has allowed me to foster an environment where creativity flourishes and new ideas are embraced. Throughout my leadership tenure at Singlife, I’ve been dedicated to fostering a culture of collaboration, transparency, and continuous learning. I believe that a company’s success lies in its people, and my colleagues and I have worked tirelessly to build a diverse team that is united by a shared vision. By nurturing talent and empowering Singlifers, we’ve been able to drive innovation, launch groundbreaking products, and strengthen our market presence. I brought in leaders ranging from the customer journey, marketing, technology, and fintech, who had a range of skills necessary for us to execute our strategy going forward to build a new company and a new brand. The insurance industry, in particular, is undergoing rapid transformation, and my role as CEO has been to guide Singlife through this transformative journey. I’ve learned that adaptability is key in this ever-changing landscape. By embracing change and remaining agile, we’ve been able to leverage technology to streamline processes, enhance customer experiences, and ultimately, position Singlife as a forward-thinking industry leader.

Nurturing a diverse and creative team is vital in reimagining the industry (Photo by Mikhail Nilov on Pexels)

INSURANCE ASIA 21

CEO INTERVIEW

Ciputra Life goes beyond its captive market Addressing customer pain points results in 60% profit shares from non-captive base INDONESIA | Ibnu Prabowo

s part of the formidable Ciputra Group in Indonesia, Ciputra Life bears the advantage of a captive market across an extensive corporate network. Yet, it is devoted as an insurer to answer to customer needs and pain points by crafting personalised solutions that have not only kept its inherent customers but also attracted a growing number of non-captive clients. Thanks to its parent companies, Ciputra Life is in an unique position due to its shareholder support from property industry and motor vehicle industry giants from which it naturally draws its clientele: vehicle and property buyers. In Indonesia, approximately 60%–70% of property or housing buyers use KPR (Housing Credit); 20%–30% pay in instalments; and around 10% buy in cash. For vehicle purchases, 70%–80% of buyers avail themselves of leasing, whilst 20%–30% pay in cash. These numbers are crucial to Ciputra Life CEO Hengky Djojosantoso, who explained to Insurance Asia that since they mainly provide credit life insurance products, they take the role in this market as a layer of protection for debtors. “So that when debtors experience a disaster, family members are not inherited with the credit burden, but the insurance company will pay off the remaining outstanding loan,” said Hengky. These debtors are Ciputra Life’s captive market, which they reach through shareholders Ciputra Group and Tunas Group, in addition to banks for bancassurance, of course. But interestingly, 60% of Ciputra Life’s current customers come from their non-captive market, an achievement that can be credited to its customer-centric approach that appeals to clients beyond their ambit of influence. Captive market dynamics The Ciputra Group is behind more than 76 property projects spread across 33 cities in Indonesia with a total development area of 7,000 ha. Tunas Group, on the other hand, is a motor vehicle dealer of such brands as Toyota, Daihatsu, and BMW. It is also a motor vehicle financing company. From Hengky’s perspective, Ciputra Life’s connections with these two industry leaders boosts the marketing of their sixyear-old company’s insurance products. The demands can be greater, revealed the insurance boss. Hengky said the requests coming from the group actually exceeded industry standards. “They demand our services to be faster so that the positive side will spur Ciputra Life to move one step ahead of the industry,” he said. Hengky also made it clear that their captive market is not automatically embedded with their product, so

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Hengky Djojosantoso, Ciputra Life CEO

Ciputra Life essentially develops its own approach with a rhythm that adjusts to their group’s property marketing and vehicle leasing activities. This then allows them to cross-sell and up-sell for each other. “Either we or they can refer to each other’s products,” he said. To illustrate, he said that if he avails himself of insurance at Ciputra Life, he gets an additional discount or bonus for buying a house in the cluster developed by Ciputra Development and vice-versa. “Even though we have only been operating for six years, the Ciputra brand, which has been embedded in the community for more than 40 years, certainly helps in terms of consumer confidence in us,” he said.

They understand their clients even down to the simplest of their worries

Solving pain points Having a captive market may be a gift, but Ciputra Life is not one to curl up under its security blanket. Hengky said their organisation is driven to address insurance customer pain points because they understand their clients even down to the simplest of their worries. He cited that when a customer’s heirs are asked for physical documents during the claims process, Ciputra Life sees this as an inconvenience if not an unnecessary hassle. Yet, certain insurance providers even demand printed documents for various client requests. This poses challenges, especially when heirs cannot locate the required documents. Ciputra Life takes the simpler

CEO INTERVIEW For customers to feel these improvements, they had to start from the after-sales side.

Cross-selling is key to reaching outside the usual client base (Photo from Pexels)

approach, said Hengky. “By simply sending a softcopy of their claim documents through WhatsApp or email and then making sure [on our end that] their data is recorded, we can process the claim,” he said. Also, Ciputra Life offers added value, in addition to the four key factors their organisation considers when designing insurance products: customer needs, pricing, promotion, and convenience. Whilst 80% of their products are credit life insurance, Ciputra Life also offers health, education, and accident insurance. Hengky noted that they recently introduced a highly personalised product called Ciputra Target Fund Insurance (Asuransi Ciputra Target Dana), which was developed based on customer insights. Value of customer insights The first insight when it comes to customers is about people’s desire to be flexible in determining their sum insured. Besides that, Hengky stressed that the customers also wants to determine the specific insurance coverage based on their specific needs. The second is about people’s expectations for certainty. “For example, within a certain period of time, a customer wants to withdraw his or her funds in a certain amount… we make sure this can be done,” Hengky said, noting Ciputra Life’s commitment to both flexibility and certainty. The third insight is that people want premium payments that do not take too long. “We found prospective customers want sufficiently long coverage for only five years premium payments,” Hengky said. For the final customer insight, Hengky said he found that Indonesian do not want their premiums to be forfeited. “Customer wants to get something regardless whether they make a claim or not making any claim,” he said. Ciputra Target Fund Insurance was designed based on these insights to help customers save for future goals like education, religious travel, inheritance, or weddings. Hengky explained that they've made this product easy to access through a digital microsite. Customers can input their desired coverage amount, term, and age, and the microsite instantly sends customised proposals via WhatsApp.

Keeping customers connected Hengky himself sees digitalisation as a way to improve customer experience through new marketing channels. But for customers to feel these improvements, he observed that they had to start from the after-sales side. He stressed the importance of focusing on customer pain points, with a major one being the complexity of the claims process. “The customer feels the hassle when submitting a claim,” he said. To address this pain point, Hengky asserted their commitment to simplifying this process digitally, even offering express claims completed in just around 60 minutes. Apart from that, Ciputra Life also leverages digital channels to educate and better communicate with customers. Through social media platforms, customers are advised on how to purchase their dream home and things to prepare if they want to take home loans, for example. Into the future Hengky emphasised the company’s commitment to advancing digitalisation. He told Insurance Asia that there were lessons learned during the pandemic, especially in terms of digital security. For Ciputra Life, he proudly mentioned their strong information security index from the National Cyber Security Agency (BSSN). Looking ahead, Hengky pointed to exciting opportunities within the Ciputra Group, which includes Ciputra University and Ciputra Hospital. He underscored their intention to foster collaborations within this network, opening up new avenues for growth and service excellence. Hengky assured that what Ciputra Life plans for the future, it would be anchored on the growing needs of its customers with a commitment to address their various pain points. “Our products will always be there to answer them,” he said.

Waiting in long lines is a deterrent for many potential clients (Photo by Jethro C. on Pexels)

INSURANCE ASIA 23

INTERVIEW

Millennials boost Allianz's younger insured reach

Of its 40,000 agents, 60% belong to the younger and more tech-savvy workforce. INDONESIA | Aulia Pandamsari

rom Hospital Cash Plan products offering daily compensation to the insured, to long-term protection, Allianz Indonesia offers a broad spectrum of insurance products prompting the company to think deeply about reaching all customer segments and meeting their needs. In response, they have come up with two strategies: tapping more millennial agents and intensifying digitalisation. “The distribution of insurance products through agents is considered important because agents can comprehensively explain complicated insurance products,” Allianz Life Indonesia Business Director Bianto Surodjo told Insurance Asia. Digitalisation, on the other hand, makes it easy for all customer segments to access their policies. “However, this is more appropriate to apply to simpler insurance products such as a monthly premium of $33.19 (IDR500,000). for health protection, or a Hospital Cash Plan, which by nature is easier to access digitally,” said Surodjo. He acknowledged that Indonesians in general have a lot more to learn about complex insurance products, so digital access to such information will not be enough. The Financial Services Authority (OJK) highlighted that, according to the 2022 National Financial Literacy and Inclusion Survey, the financial literacy index in Indonesia stood at 49.68% whilst the inclusion rate reached 85.10%. This reveals a 35.42% disparity between the country's financial literacy and inclusion levels. Currently, Allianz Indonesia protects more than 13 million insureds, marking a significant increase from the 10 million policyholders at the close of 2020. Millennial agents attract their own In terms of distributing insurance products, Allianz Indonesia is currently working with 15 banks and more than 40,000 agents, of whom are 60% millennials and Gen Zs. This distribution process through millennial and Gen Z agents allows the firm to reach young customers in the same age groups. This move is particularly important, given that Indonesian society and spending are now dominated by millennials and Gen Zs. “In the next five to ten years, the millennial generation will have a much larger spending portion than now. Because they are productive and quite established,” said Surodjo. To effectively engage them, the key is to tap their fellow millennials and Gen Zs. “Our experience is that millennial and Gen Z customers cannot be accessed by agents from the previous generation. Because the millennial generation and Gen Zs are more sophisticated, they understand world movements or things that are dynamic more quickly,” said Surodjo. 24 INSURANCE ASIA

Bianto Surodjo, Business Director of Allianz Life Indonesia

This is an opportunity for us to continue to provide digital innovation and convenient protection solutions

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Digitalisation, a key to success To complement their focus on agent's competence, Allianz Indonesia has employed digital innovations across pre-sales, sales, and post-sales processes to improve the distribution of products. “Over the years, we have created an ecosystem for digital-based services that meet customer needs, from the process of submitting policies to claims,” explained Surodjo. The insurance firm owns such digital sales tools as Allianz eAZy Connect that allows the customers to access all policy information and submit health insurance claims through an online portal; Allianz eAZy Payment that allows the insureds to pay premiums online; and OptimAll that ables customers to buy health insurance online through the official company website. “The more Indonesians have access to technology, such as smartphones, this is an opportunity for us to continue to provide digital innovation and convenient protection solutions for customers,” he expressed. Surodjo shared that their digital services have been gaining popularity as nearly 100% of the firm's life insurance applications are now online. Then, their e-policies account for 68% of the new ones issued, and more than 63% of online health insurance claims are resolved within a day. “This is also one of the keys to success for Allianz, where our market share increases or annual premium equivalent (APE) during the pandemic, from 5.6% in 2019 to 10.2% in 2022 with digitalisation,” he said.

Sun Life Grepa wins MSME award for 2nd year in a row

Sun Life Grepa offers a comprehensive and affordable insurance package for the wellness, protection, and recovery needs of MSMEs with 5 to 200 employees. With its Group Insurance business rebranded as Sun Life Grepa Healthcare, the insurer created the Wellness, Protection, and Recovery ecosystem to fulfill its commitment to be its clients’ Health Insurance Partner (HIP). To address the specific needs of MSMEs, Sun Life Grepa came up with three insurance protection packages:

Holding the trophy is Sun Life Grepa Vice President for Group Marketing Operations Peter Miranda (middle) with Head of Group Sales Strategies Justine Daguman (1st from right) and Insurance Asia Magazine Editor-In-Chief Tim Charlton (1st from left).

For the second year in a row, leading life insurer Sun Life Grepa Financial, Inc. (Sun Life Grepa) was bestowed the MSME Insurance Initiative of the Year Award for its holistic group insurance ecosystem which covers wellness, protection, and recovery. “Micro, small and medium enterprises (MSMEs) are the lifeblood of our economy. This is why Sun Life Grepa has been partnering with Filipino entrepreneurs as they invest in their employees’ health and ultimately in their company’s success,” said Vice President for Group Business Peter Miranda, who received the award in the Insurance Asia Awards held last July 27 at Marina Bay Sands in Singapore. In the Philippines, MSMEs employ 5.5 million Filipinos and comprise 99.58% of businesses in the country with over a million establishments in operation, according to the Philippine Statistics Authority (PSA). Given their vital role in the Philippine economy, it is important for MSMEs to ensure the health, safety, and wellness of their employees.

Unfortunately, not all small enterprises can afford or prioritize their employees’ health insurance and even struggle to keep afloat, especially during the COVID-19 pandemic. This is why Sun Life Grepa launched products that aim to help MSMEs protect their employees against accidents and uncertainties. Through its MSME MyBiz,

Intended for new or start-up businesses, Accident ProSafe is an affordable yet comprehensive accident protection plan. It provides with benefits such as a lump sum amount in case of accidental death, dismemberment or disablement; reimbursement of actual inpatient and outpatient medical expenses incurred to treat bodily injuries due to accident; and a fixed cash benefit for every full day of hospital confinement due to accident.

Targeting rapidly growing companies, this group life and health insurance package helps MSMEs insure their people for contingencies like sickness, accidents or disability. Its robust protection plan includes benefits such as a group yearly renewable term life, which pays a lump sum amount in case of an employee’s death due to any cause including those arising from COVID-19; total and permanent disability income benefit and terminal illness benefit; and accidental death, dismemberment and disablement benefit with medical reimbursement.

Aimed at established MSMEs, this group medical package enables employers to secure their workforce against medical emergencies, as well as beef up employee health and medical benefits package to attract and retain employees.

Scan the QR code now to watch the MSME MyBiz videos!

Mr. Miranda said being recognized for its MSME insurance initiatives serves as a solid testament to Sun Life Grepa’s commitment to helping Filipinos achieve lifetime financial security and live healthier lives. “Sun Life Grepa’s life and health insurance solutions are designed to protect employees so MSME business owners can focus on growing their business,” he said.

INSURANCE 25 Benefits indicated above are subject to the specific guidelines set by Sun Life Grepa and the actual provisions of the Group policyASIA contract. These products are subject to exclusions and/or provisions on pre-existing conditions, if applicable, as stated in the Group policy contract.

INTERVIEW

Insurance access hinges on sustainability fixes Compliance matters for insurers even as green investments face a supply-demand issue.

SINGAPORE | Olivia TIrona

nsurers are increasingly scrutinizing the financial and reputational risks associated with companies that fail to address sustainability issues adequately, according to Sustainable Fitch. As a result, insurers are becoming more selective in their underwriting practices. This trend is expected to encourage corporations to adopt credible transition plans to secure insurance coverage. Allianz SE's 2022 sustainability report illustrates this shift, as the company declined 33 insurance client transactions out of 730 assessed, opting for 207 under specified conditions or mitigation measures due to identified "severe" sustainability risks, particularly in the oil and gas industry. Sustainable Fitch predicts that this pressure from insurers will accelerate the adoption of credible transition plans among companies striving to maintain insurance access. In an exclusive interview with Insurance Asia, Great Eastern Head of Sustainability Winnie Tan talked about its role as an insurer and how it leverages renewable energy and climate resilience into its business strategies. Investment and underwriting Great Eastern’s approach to sustainability lies in a multipronged strategy: investment and underwriting. Recognising that energy transition plays a central role in the decarbonisation process, Great Eastern leverages its financial prowess to support both the growth of renewable energy projects and the metamorphosis of traditional industries into eco-conscious models. “You look at what is investable. We realise that there is a rush for what you call green investments. Clearly, there’s a demand-supply issue. And there might be what you call a green premium. But this is also where I think investment science is evolving around sustainable models,” Tan said. In an S&P Global Market Intelligence article, incorporating environmental, social and governance (ESG) in an insurance portfolio allows insurance firms to wield significant influence over social and governance matters. They exert this influence through corporate initiatives, underwriting practices, and commitments. “Employing thematic approaches to target specific outcomes could help, and tracking KPIs could be the proof statement that the desired goals are being met,” S&P Global stated. Great Eastern is on board that this transition not only aligns with climate goals but also fuels the economic growth necessary for a sustainable future. One intriguing facet of the insurance industry is its dual role in investments. On one side, it scrutinises its own 26 INSURANCE ASIA

Winnie Tan, Great Eastern Head of Sustainability

Investment science is evolving around sustainable models

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investment choices, ensuring alignment with sustainable principles. On the other, it aids clients in their pursuit of greener practices. Great Eastern epitomises this multifaceted approach, engaging with both brown industries seeking transformation and pure-play green firms. “From our general accounts, in investing or the choices we make – what to invest in or what not to invest it – what’s really important is it's not about shying away from what we call traditionally brown firms, but to look at what do we do to help our key industries and key clients to transit smoothly,” Tan said. Through its support of renewable energy giant EDPR (formerly Sunseap), the company demonstrates its commitment to enabling a transition for its clients. “For example, Great Eastern is a partner to EDPR APAC by insuring their solar projects, and also the protection of the employees. Upon project completion, the insurance solutions continues to protect the assets to maintain peak performance for the benefit of the facility users,” Tan stated. Sustainability across 3 pillars Great Eastern’s sustainable journey is defined by three key pillars: investment, underwriting, and operational. These pillars embody the company’s comprehensive approach to addressing climate change. The integration of risk controls, risk appetite, and risk assessment frameworks form the bedrock of their sustainability strategy. “I think risk is also a very future-looking aspect as well. As we look at climate risks, there are both the physical risks and transition risks. Being able to assess both accurately [is key]. It is both, I think, an art and a science that is evolving very quickly,” Tan adds.

INSURANCE ASIA 27

COUNTRY REPORT: SOUTH KOREA financial performance outlook. The transition has varying impacts and benefits for non-life and life insurers, with non-life insurers potentially benefiting due to market value-based insurance liabilities. This approach may lead to lower liabilities for non-life insurers compared to the traditional costbased measurement used by life insurers. Non-life insurers, often dealing with short-term contracts generating fewer and smaller liabilities, stand to gain from the extended recognition period of gains and losses stipulated by IFRS 17, particularly when they have a higher proportion of short-term protection policies.

The Financial Supervisory Service oversees the Korean industry sector and IFRS17 implementation (Photo by KoreaKHW on Shutterstock)

New accounting rule may strain capital reserves

IFRS 17 adoption is seen to improve insight into margins and reserves, increase motivation for long-term profitability, and better global comparability. By Olivia Tirona

ndustry experts contend that the adoption of the International Financial Reporting Standard 17 (IFRS 17) by the insurance sector in South Korea raises valid concerns about potential strain on insurers’ capital reserves. This adoption signals substantial transformations in the South Korean insurance landscape, with experts suggesting that relief might be found in interest-rate hikes, offering a potential solution to ease the negative spread burden for select insurers. What transitioning entails The impact of adopting IFRS 17 varies among insurers, hinging on their business focus and investment risk profile, ushering in comprehensive changes in financial reporting, capital requirements, and risk management. “Companies implementing IFRS 17 must measure investment assets and insurance liabilities using market value, which means that companies with good asset28 INSURANCE ASIA

Insurers are likely to prevail in a challenging operating environment from highinterest rates and the new accounting regime

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liability-match management and small duration gap can demonstrate their ability to maintain a low level of solvency sensitivity,” according to Trung Tran, an Asia Pacific insurance analyst at CreditSights. In full compliance with regulatory mandates, all South Korean insurers have embraced IFRS 17, also known as KRFS 1117, since January 2023. Under this standard, profits are recognized as services are provided, not when premiums are received, aligning accounting with cash flow timing. “Under IFRS 17, insurance liabilities are valued based on market-consistent assumptions. Under previous IFRS 4-based accounting rules in Korea, insurance liabilities were measured using ‘locked-in’ assumptions at the inception of a contract,” Emily Yi, director at S&P Global Ratings, told Insurance Asia in a separate interview. The rule also mandates that insurers disclose expected profits from future insurance contracts, providing transparency into their

Caveats to transitioning Tran, of CreditSights, pointed out that the transition coincided with the implementation of the new solvency regime known as K-ICS (Korean Insurance Capital Standard). South Korean insurers, such as Samsung Life, have tried to educate the public about regulatory changes. By March 2023, it has been clear that life insurers are more affected than non-life insurers. Some insurers, both local and foreign, have K-ICS ratios below the recommended 150%, indicating potential capital issues. IFRS 17 has also made asset and liability measurement marketbased, emphasising asset-liability management (ALM) and duration gap management. A strong ALM strategy is crucial for mitigating earnings volatility, regardless of IFRS 17 adherence. Meanwhile, Contractual Service Margin (CSM) and gradual amortisation aid earnings stability. In anticipation of higher insurance liabilities, S&P Global Ratings’ Yi said insurers took several proactive steps such as reducing asset and liability duration mismatches, issuing hybrid capital instruments, and emphasising protection-type policies with higher margins. A significant helping hand came from the rising interest rate environment in the country over the past two years. Higher domestic interest rates led to increased discount rates, resulting in lower insurance liabilities and reduced reserve requirements, thereby alleviating some of the initial capital pressure.

INSURANCE ASIA 29

COUNTRY REPORT: INDONESIA

PSAK 74, transforming insurance practices in Indonesia for the better The new method of presenting financial reports boosts transparency and market confidence in the insurance industry.

By Aulia Pandamsari

takeholders can now get a clearer overview of their company's performance as the insurance industry nationwide adopts a new procedure for financial reporting. The Statement of Financial Accounting 74 (PSAK 74) will now require insurers to disclose detailed product information in periodic reports and to be subject to more frequent reviews. These transparency measures are aimed to rebuild market confidence and will take into effect on 1 January 2025, according to the Financial Services Authority (OJK), the regulatory body overseeing the non-bank financial sector. A remedy for info gaps The implementation of PSAK 74 states that financial business sector actors are required to submit and compile financial reports in accordance with specifications set by the Reporting Standards Committee. The OJK hopes that the implementation of PSAK 74, adopted from International Financial Reporting System (IFRS 17), can address the issue of asymmetric information which makes it difficult for stakeholders, including consumers, investors and regulators, to get a good picture of the financial condition and operational performance of insurance companies. The implementation of PSAK 74 is important because the insurance sector plays a role in driving national economic growth both as a provider of community risk management services and as an institutional investor that fulfills long-term funding needs. This can also be a remedy for the problems experienced by some insurance industry players which, in recent years, have shown the potential to erode public confidence. The OJK said that there were 11 insurance companies that already 30 INSURANCE ASIA

The OJK have started special investigations on companies that may erode public trust (Photo by haryanta.p on Shutterstock)

PSAK 74 helps insurance companies become fairer and transparent in managing premiums entrusted from policyholders

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received their special supervision. Two of them had their licenses revoked. At present, four companies have submitted their Financial Restructuring Plans for the OJK’s review. Meanwhile, the five other firms are under monitoring, with the OJK having issued warnings to them. At the beginning of the year, President Joko Widodo also expressed the need for increased supervision of insurance companies, online loans and investments in response to numerous public complaints about losses incurred. The President’s resolve is buoyed by complaints from the public, including in the insurance sector. He alluded to cases of misuse of customer funds by insurance companies. The President was particularly concerned with PT Asabri Persero, which incurred losses of up to IDR23 trillion (US$1.49b), and PT Jiwasraya Persero, which caused losses to customers of up to IDR17 trillion (US$1.1b). He said these should not happen again. Impact of PSAK 74 Insurance analyst and Kupasi board member, Wahju Rohmanti, believes that administrative regulation through the presence of PSAK 74 can be one of the answers to the problem.

She assessed that the troubles faced by problematic insurance companies stem from inadequate asset management skills and its infrastructure to meet obligations. She stressed that the primary role of insurance companies is protection in the future, so proficient methods of recording and managing financial reports are an inherent part of its duty. “With the introduction of PSAK 74, insurance companies can no longer recognise premium income as their assets but premiums become the assets of policyholders so that (insurance companies) cannot invest arbitrarily in high risk instruments,” Wahju told Insurance Asia. “That [PSAK 74] helps insurance companies become fairer and transparent in managing premiums entrusted from policyholders. As time goes by, this could enhance public trust," she added. PSAK 74 replaces the previous regulation, PSAK 62, regarding Insurance Contracts. PSAK 62 was deemed inadequate in providing information about insurance company reserves and income due to outdated assumptions, using investment return estimates with technical interest rates and insufficiently considering the time value of money.

INSURANCE ASIA 31

EVENT COVERAGE: INSURANCE ASIA FORUM

Insurers discuss strategies in promoting financial literacy

How customer centricity aids narrow market penetration

With less than 3% insurance penetration, experts concur that low financial literacy has eroded potential growth for the Philippine market MANILA | Olivia Tirona

he lack of product personalisation and a customer-centric approach has kept the Philippines’ insurance penetration at a low, dragging the potential growth the industry has, according to insurance leaders. Six insurance experts spoke about overcoming the low insurance penetration barrier at the 2023 Insurance Asia Forum in Manila last 3 October. The industry, once characterised by its traditional products and customer-centric approach, is undergoing a seismic shift whilst six key focus areas must be given close attention. Charisse Rossielin Y. Cruz, consulting partner at EY, shared with fellow insurers the upcoming trends, problem areas, and possible opportunities. Cruz spelled out these six focus areas as: product, service, and experience innovation; distribution model agility; talent flexibility; impactful marketing and enhanced service; upgraded streamlined IT architecture operational excellence across the enterprise; and merger and acquisition (M&A) and capital management strategies. 32 INSURANCE ASIA

But, beyond retirement savings and health insurance coverage gaps, many consumers lack financial knowledge and confidence

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Insurance is no longer seen as a standalone product, Cruz emphasised. It now seeks holistic solutions that encompass protection, savings, and investments, and are tailored to people’s evolving life stages. “But, beyond retirement savings and health insurance coverage gaps, many consumers lack financial knowledge and confidence,” she said. In the Philippines, 83% of Filipinos are concerned the most about losing a loved one earlier than expected. This was followed by their financial well-being (80%), hospitalisation expenses (79%), and loss of stable income (78%). Upscaling coverage During a panel discussion moderated by Alvin Dave Pusing, director of financial services and risk consulting at PwC, three perspectives cropped up to identify how insurers can boost insurance penetration – not only in the country but in the region. The panellists acknowledged that the insurance industry traditionally relied on personal relationships and agent-driven models. The emergence of digital insurance, initially met with scepticism, gained momentum as a response to the pandemic, forcing

the industry to innovate. Prahlad Agarwal, head of strategy and chief of staff to the CEO of Manulife Philippines, emphasised the need to redefine customer demographics in a post-COVID world. His key recommendations to move from product to proposition-based selling include identifying the current needs, imagining the distribution channels, and forming a solid customer experience. “How can we build our model because essentially, it’s a subscriptionbased model where we expect the customers to pay the premiums so that they can get their coverage forever. And I think the new age customer would kind of relate that with other subscription services, like maybe Netflix, streaming channels. So how, as a sector, we can maybe not match, but kind of come to a situation where we can deliver those in a more acceptable way,” Agarwal said. Need for financial literacy Gino Carlo Riola, chief marketing officer of Allianz PNB Life Philippines, talked about the challenges of low insurance penetration in the Philippines, which has remained around 2%-3%. He stressed the importance of financial literacy and changing the cultural perception of spending money, emphasising the need for long-term financial planning. “We definitely need to do a lot in terms of education. Going back through the whole point, I think COVID gave us this opportunity to really make the point that this is not something to be scared of. As a matter of fact, a lot of Filipinos really need it, so the point around health insurance is important. The realisation that if you are living in the Philippines, you have a healthcare problem,” Riola said. Michelle Cordero-Garcia, chief HR officer of Sun Life Philippines, indicated the vital role insurers play in the assurance of a good relationship with clients. “We encourage our employees to be active in attending our agency events, because we feel that if they understand the entire ecosystem of every person in the organisation, advisors or stakeholders, and clients, then they will have a deeper appreciation of what it is that we’re doing for our clients.” she said.

EVENT COVERAGE: INSURANCE ASIA FORUM

Outdated systems cause breaches, stunt market

Insurance experts warn of poor systems leading to the disruption of digital adoption, whilst partnership opportunities could boost growth. MANILA | Olivia Tirona

eginning insurers’ digital transformation with legacy systems is risky, as experts warned that old technology and data breaches are becoming detrimental to the overall potential growth of the industry. This was pointed out at the 2023 Insurance Asia Forum in Manila, when Tyler Thuy Long, ZA Tech’s country manager for the Philippines and Vietnam, stressed that the majority of insurers primarily begin their digital transformation with legacy systems too old to innovate, dragging their overall potential growth. These legacy systems often come with limitations that can hinder the development of new products and insurance channels. Recent data from a BCG analysis revealed that only 30% of digital transformation initiatives succeed. While ZA Tech has achieved remarkable success, the company acknowledged that it had encountered its fair share of obstacles. Long cited an example where a seemingly minor technical issue regarding character limits in an address field caused significant delays and financial setbacks. “Our recommendation is that the first step for the digital

Minor technical issue regarding character limits in an address field caused significant delays and financial setbacks.

journey should be [to] identify and remove the legacy by error to the organisers. And consider adopting the cloud native and micro service architecture core system, because it will provide scalability. And also, more importantly, can allow you to use [and] trust the [in] future all the capabilities you need,” suggested Long.

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Safeguarding the digital insurance industry Insurance experts conversed about their comprehensive views of the challenges and strategies involved in safeguarding the digital insurance industry in the Philippines amidst the dangers of sharing personal data. FWD Life Insurance Chief Risk Officer Angela Rowley, an industry veteran with over 30 years of experience, highlighted the evergrowing significance of personal data protection in the digital age. Ransomware attacks and data breaches have become frequent occurrences, affecting organisations with substantial data repositories. Rowley stressed the need for constant vigilance and adaptability to ensure cybersecurity, given the evolving threat landscape. “We have to be always aware of – what are the changes? How do we need to adapt? How do we need to

Legacy systems need to be overhauled to reduce time on patches and repairs (Photo by Sora Shimazaki on Pexels)

improve our cyber stance? So, I really see that as the biggest threat we need. And we have to be always on our toes for this,” Rowley said. Samson Kenneth Radovan, head of Enterprise Digital Transformation at AIA, said that compliance amongst the market’s regulation must be kept sacred by insurers despite varying levels of standards. “You have to make sure that you’re compliant, even with the Hong Kong regulators, which has proven to be quite costly, depending on the amount of risk acceptance that you want to take. So I think that's going to be very different across the different organisations,” Radovan said. “I think when you look at cybersecurity, it’s going to cut across your entire transformation. And across all the different digitisation projects that are going to be there. And so it really entails a culture change, mindset change, and a true risk assessment for the appetite of compliance risks that the organisation is willing to take,” he added. Upgrade costs Mirroring Radovan’s perspective on costs, Rowley emphasised that as insurers, the industry needs to brace for possible costs and risks. “As insurance companies, we actually do have to spend a lot of money to make sure we have the latest tools. You know, we do simple things like are we always patching everything, you know, it’s not sexy stuff,” Rowley noted. “But Filipinos expect us to know what we’re doing, we have to do our best.” She said it is this demand from customers that keeps her insurance firm focused on always staying one step ahead. The panel also confronted the issue of reputation risk associated with data breaches. Noting that the Philippines remains challenged in terms of financial literacy and data awareness, insurance providers need to focus on customer-centric data protection measures. Finally, the panel recognised AI's potential in enhancing the industry, but Rowley expressed concern about misuse for fraud. In addition, Radovan emphasised the need for training and monitoring for process reliability. INSURANCE ASIA 33

EVENT: INSURANCE ASIA AWARDS 2023

Dedicated and innovative insurers lauded at Insurance Asia Awards 2023 In recent years, the insurance landscape has undergone significant changes. The emergence of new technologies, shifting consumer expectations, and evolving regulatory frameworks have all contributed to the need for insurance agencies to reimagine their offerings and find new ways to deliver value to their clients. With this, the Insurance Asia Awards returned for its 8th year to recognise insurance companies that managed to provide quality offerings to customers whilst also making a significant impact. Winners of the awards programme, organised by the Insurance Asia Magazine, were honoured at an Awards Dinner held on 27 July 2023, at Marina Bay Sands, Singapore. The esteemed panel of judges for this year’s nominations consisted of Lim Siang Thnia, Deloitte Southeast Asia Insurance Sector Leader, Deloitte; Liza Drew, Asia-Pacific Financial Services Indirect Tax Leader,

EY; Frank Dubois, Head of Insurance, Partner, KPMG Singapore; Steven Goh, Head of Insurance Audit, Partner, KPMG Singapore; and Chris Hewison - Partner, Insurance and Financial Services, PwC Hong Kong. For Goh and Dubois, winning entries were able to showcase their strengths in the adoption of predictive analytics and AI, embedding ESG into their core business strategy, as well as risk management, sensible asset allocation and prudential modus operandi, amongst other factors. "With the recent abrupt episodes in the banking sector, insurers that have consistently kept true to these commitments will drive home the message of greater customer confidence and why their tighter adherence to policies and risk management make better returns in the long run," they explained. Congratulations to this year’s awardees!

Insurance Asia congratulates the following winners:

Allianz PNB Life • International Fastest Growing Life Insurer of the Year - Philippines

Aditya Birla Insurance Brokers Limited • Domestic Broker of the Year - India • Digital Transformation Initiative of the Year - India Aflac Life Insurance Japan Ltd. • AI Initiative of the Year - Japan • Insurtech Initiative of the Year - Japan • Underwriting Initiative of the Year - Japan AIA • Customer Service Initiative of the Year - China • Digital Insurance Initiative of the Year - China AIA (Vietnam) Life Insurance Company Limited • Insurance Initiative of the Year - Vietnam • Health Insurance Initiative of the Year - Vietnam AIA Bhd. • AI Initiative of the Year - Malaysia • Digital Transformation Initiative of the Year - Malaysia • Insurtech Initiative of the Year - Malaysia • Health Insurance Initiative of the Year - Malaysia • Mobile App of the Year - Malaysia • Strategic Partnership of the Year - Malaysia AIA Group • AI Initiative of the Year - Hong Kong • Marketing Initiative of the Year - Hong Kong AIA Indonesia • Mobile App of the Year - Indonesia AIA Insurance Lanka Limited • Digital Transformation Initiative of the Year - Sri Lanka AIA Singapore • Domestic Life Insurer of the Year - Singapore • Advisers Initiative of the Year - Singapore AIA Thailand • International Life Insurer of the Year - Thailand Allianz Partners China • Insurtech Initiative of the Year - China 34 INSURANCE ASIA

Amana Takaful Insurance • Mobile App of the Year - Sri Lanka Aon • International Broker of the Year - Gold AXA Philippines • Health Marketing Initiative of the Year - Philippines AYA SOMPO Insurance • Technology Excellence Initiative of the Year - Myanmar Bajaj Allianz Life Insurance • Social Media Initiative of the Year - India • Domestic Life Insurer of the Year - India BaoViet Insurance Corporation • Domestic General Insurer of the Year - Vietnam • New Insurance Product of the Year - Vietnam BINAH.AI • Insurtech Start-up of the Year - Israel Blackpanda • Cybersecurity Insurtech Platform of the Year - Singapore Blue Insurance Limited • Virtual Insurer of the Year - Hong Kong bolttech • Technology Excellence Initiative of the Year - Singapore Boubyan Takaful Insurance Co. • Islamic Insurer of the Year - Kuwait Braxtone Muscat L.L.C • Customer Service Initiative of the Year - Oman Cebuana Lhuillier Insurance Brokers, Inc. • Domestic Broker of the Year - Philippines • Health Insurance Initiative of the Year - Philippines China Life Insurance Co., Ltd • Digital Insurance Initiative of the Year - Taiwan • ESG Initiative of the Year - Taiwan

Chubb Life Insurance Taiwan Company • AI Initiative of the Year - Taiwan

HNB Assurance PLC • Insurance Distribution Initiative of the Year - Sri Lanka

Cocolife • Digital Transformation Initiative of the Year - Philippines

Howden Broking Group • International Broker of the Year - Silver

Continental Insurance Lanka Limited • Domestic General Insurer of the Year - Sri Lanka

ICICI Lombard General Insurance Co Ltd • Claims Initiative of the Year - India

Dai-ichi Life Insurance (Cambodia) PLC • International Life Insurer of the Year - Cambodia

Igloo • Insurtech Initiative of the Year - Singapore

E.design Insurance Co., Ltd. • Direct Insurer of the Year - Japan • Auto Insurance Initiative of the Year - Japan

InsuranceDekho • Insurtech Start-up of the Year - India

Etiqa Insurance and Takaful • Digital Insurance Initiative of the Year - Malaysia Etiqa Life and General Assurance Philippines Inc. • Insurtech Initiative of the Year - Philippines Expat Insurance Pte Ltd • Domestic Broker of the Year - Singapore Forte Insurance (Cambodia) Plc • Domestic General Insurer of the Year - Cambodia • Marketing Initiative of the Year - Cambodia

J&C Insurance Brokers Co., Ltd • Domestic Broker of the Year - Laos Janashakthi Insurance PLC • Domestic Life Insurer of the Year - Sri Lanka • Digital Insurance Initiative of the Year - Sri Lanka KBZMS General Insurance • Digital Transformation Initiative of the Year - Myanmar • Domestic General Insurer of the Year - Myanmar • Customer Service Initiative of the Year - Myanmar Kotak Life Insurance • Technology Excellence Initiative of the Year - India

FPG Insurance Co., Inc. • New Insurance Product of the Year - Philippines

Krungthai-AXA Life Insurance PCL • ESG Initiative of the Year - Thailand

FWD Life Insurance Company, Ltd. • Digital Transformation Initiative of the Year - Japan

Liberty Insurance Limited • International General Insurer of the Year - Vietnam • Auto Insurance Initiative of the Year - Vietnam

Generali Insurance Malaysia Berhad • International General Insurer of the Year - Malaysia Go Digit General Insurance • Auto Insurance Initiative of the Year - India • Health Insurance Initiative of the Year - India Grand Guardian Nippon Life Insurance Company • International Life Insurer of the Year - Myanmar • New Insurance Product of the Year - Myanmar Great Eastern Life Assurance Company Ltd • Health Insurance Initiative of the Year - Singapore • Digital Transformation Initiative of the Year - Singapore • Education Insurance Initiative of the Year - Singapore Great Eastern Takaful Berhad • Sustainable Takaful Initiative of the Year - Malaysia Green Delta Insurance Company Ltd. • Digital Insurance Initiative of the Year - Bangladesh HDFC Ergo General Insurance • AI Initiative of the Year - India Himalayan Everest Insurance Ltd • Insurance Inclusion Initiative of the Year - Nepal • New Insurance Product of the Year - Nepal HIVE BY INCOME • Insurance Inclusion Initiative of the Year - Vietnam • Insurtech Initiative of the Year - Vietnam

Magma HDI General Insurance Company • Customer Service Initiative of the Year - India • Insurance Initiative of the Year - India Malayan Insurance • Domestic General Insurer of the Year - Philippines MB Ageas Life • Education Insurance Initiative of the Year - Vietnam Medici • Domestic Broker of the Year - Vietnam MetLife Bangladesh • Mobile App of the Year - Bangladesh • Marketing Initiative of the Year - Bangladesh MS Amlin • Strategic Partnership of the Year - Singapore MSIG Insurance (Singapore) Pte. Ltd. & Fermion Merimen • Claims Initiative of the Year - Singapore Nan Shan Life Insurance Company • Domestic Life Insurer of the Year - Taiwan National Reinsurance Corporation of the Philippines • Strategic Partnership of the Year - Philippines • Asian Reinsurer of the Year - Bronze Now Health International • Customer Service Initiative of the Year - Singapore INSURANCE ASIA 35

EVENT: INSURANCE ASIA AWARDS 2023 Ofoq Insurance Broker • Domestic Broker of the Year - Saudi Arabia Pasargad Insurance • Domestic Life Insurer of the Year - Iran Peak Reinsurance Company Limited • Asian Reinsurer of the Year - Gold

Qianhai Reinsurance Company Limited • Auto Insurance Initiative of the Year - China • Asian Reinsurer of the Year - Silver Salaam Takaful Limited • ESG Initiative of the Year - Pakistan SBI General Insurance Company Ltd • Domestic General Insurer of the Year - India

PGA Sompo Insurance Corporation • Business Insurance Initiative of the Year - Philippines • Travel Insurance Initiative of the Year - Philippines

Shikhar Insurance Co. Ltd • Agriculture Insurance Product of the Year - Nepal

PNB MetLife Insurance • Messaging Platform Initiative of the Year - India

Softlogic Life Insurance PLC • AI Initiative of the Year - Sri Lanka • Marketing Initiative of the Year - Sri Lanka

Policybazaar Insurance Brokers Pvt Ltd • Insurtech Broker Initiative of the Year - India Pramerica Life Insurance Limited • Digital Insurance Initiative of the Year - India Pru Life UK • International Life Insurer of the Year - Philippines Prudential Assurance Malaysia Berhad • International Life Insurer of the Year - Malaysia • ESG Initiative of the Year - Malaysia • Insurance Inclusion Initiative of the Year - Malaysia Prudential BSN Takaful Berhad • Takaful Health Solution of the Year - Malaysia Prudential Life Assurance (Thailand) PCL • Digital Transformation Initiative of the Year - Thailand • Domestic Life Insurer of the Year - Thailand • Health Insurance Initiative of the Year - Thailand Prudential Vietnam Assurance Private Ltd. • International Life Insurer of the Year - Vietnam • ESG Initiative of the Year - Vietnam PT AIA FINANCIAL • Customer Service Initiative of the Year - Indonesia • Education Insurance Initiative of the Year - Indonesia • Social Media Initiative of the Year - Indonesia

Sompo Insurance (Thailand) Public Company Limited • Digital Insurance Initiative of the Year - Thailand • Insurance Initiative of the Year - Thailand Sonali Life Insurance Company Limited • Claims Initiative of the Year - Bangladesh Sun Life Grepa Financial, Inc. • MSME Insurance Initiative of the Year - Philippines Surer • Insurtech Start-up of the Year - Singapore Taiwan Life Insurance Co., Ltd. • Digital Transformation Initiative of the Year - Taiwan • New Insurance Product of the Year - Taiwan Thai Life Insurance Public Company Limited • Sustainable Insurance Initiative of the Year - Thailand The Insular Life Assurance Co., Ltd. • Domestic Life Insurer of the Year - Philippines Tune Protect Group • Claims Initiative of the Year - Malaysia • Marketing Initiative of the Year - Malaysia Türkiye Sigorta • Digital Insurance Initiative of the Year - Turkey • Mobile App of the Year - Turkey

PT AXA Mandiri Financial Services • Health Insurance Initiative of the Year - Indonesia

Xceedance Consulting India Private Limited • Insurtech Initiative of the Year - India

PT FWD Insurance Indonesia • Insurance Initiative of the Year - Indonesia

ZA Tech • Insurtech Broker Initiative of the Year - Singapore

PT Great Eastern Life Indonesia • Digital Transformation Initiative of the Year - Indonesia • ESG Initiative of the Year - Indonesia

Zurich General Takaful Indonesia • New Insurance Product of the Year - Indonesia

PT Mandiri AXA General Insurance • Domestic General Insurer of the Year - Indonesia

Zurich Insurance (Hong Kong) • Digital Insurance Initiative of the Year - Hong Kong • Travel Insurance Initiative of the Year - Hong Kong

PT Prudential Sharia Life Assurance (Prudential Syariah) • International Sharia Life Insurer of the Year - Indonesia

Zurich Malaysia • Customer Service Initiative of the Year - Malaysia

Qatar Insurance Company (QIC) • Domestic General Insurer of the Year - Qatar

Fabrice Benard, Generali Malaysia • CEO of the Year

36 INSURANCE ASIA

Aflac Life Insurance Japan Ltd

AIA Bhd

AIA Indonesia

AIA Singapore

AIA Vietnam

AIA

AON

AYA SOMPO Insurance

BaoViet Insurance Corporation

bolttech

Cebuana Lhuillier Insurance Brokers, Inc

China Life Insurance Co., Ltd.

Chubb Life Insurance Taiwan Company

Continental Insurance Lanka Limited

Dai-ichi Life Insurance (Cambodia) PLC

E.design Insurance Co., Ltd

Etiqa Insurance and Takaful

Etiqa Life and General Assurance Philippines Inc

Expat Insurance Pte Ltd

Forte Insurance (Cambodia) Plc INSURANCE ASIA 37

EVENT: INSURANCE ASIA AWARDS 2023

FPG Insurance Co., Inc.

Generali Insurance Malaysia Berhad

Grand Guardian Nippon Life Insurance Company

Great Eastern Life Assurance Company Ltd

Himalayan Everest Insurance Ltd

HIVE BY INCOME

ICICI Lombard General Insurance Co Ltd

KBZMS General Insurance

Krungthai-AXA Life Insurance

Liberty Insurance Limited

MetLife Bangladesh

MS Amlin

Nan Shan Life Insurance Company

Now Health International

Peak Re

38 INSURANCE ASIA

PNB MetLife Insurance

Prudential Life Assurance (Thailand) PCL

PT Great Eastern Life Indonesia

Sun Life Grepa Financial, Inc

The Insular Life Assurance Co., Ltd

Pru Life UK

Prudential Assurance Malaysia Berhad

Prudential Vietnam Assurance Private Ltd

PT Prudential Sharia Life Assurance (Prudential Syariah)

PT AIA FINANCIAL

SBI General Insurance Company Ltd

Taiwan Life Insurance Co., Ltd

Tune Protect Group

Prudential BSN Takaful Berhad

Sompo Insurance (Thailand) PCL

Thai Life Insurance Public Company Limited

Zurich Hong Kong

Zurich Malaysia INSURANCE ASIA 39

40 INSURANCE ASIA

INSURANCE ASIA 41

DIGITAL TRANSFORMATION INITIATIVE OF THE YEAR - MALAYSIA MOBILE APP OF THE YEAR - MALAYSIA AI INITIATIVE OF THE YEAR - MALAYSIA

THE NEEDS OF YOUR EMPLOYEES HAVE CHANGED. Can your benefits match them? WorkWell with AIA now provides employees with the support they’ve been seeking.

he pandemic is behind us, and life has regained its pulse. Children are back at school, socialising is on overdrive, and overseas travel is back on the horizon. In workplaces, operations are running at full capacity, and for many, the work-from-home era is a thing of the past. But some things have permanently changed post-pandemic, especially amidst a rapidly evolving economic landscape. The most obvious? The way the Malaysian workforce views wellbeing and happiness at their workplace. It’s no longer about just showing up physically healthy at work anymore. Today, true health and happiness are about flourishing in all aspects of life—physical, financial, mental, and driven by purpose. When employees thrive in these dimensions, their productivity and dedication soar. The formula is simple: A healthier, happier workforce equals more engaged and motivated employees. But there has been a missing piece in this puzzle: the role that employers can play 42 INSURANCE ASIA

in order to achieve a happy, healthy, and thriving workforce. UNDERSTANDING WHAT IT TAKES As a leading insurer in employee benefits, AIA recognises the immediate need to reshape employee benefits for the modern workplace. The result? WorkWell with AIA is a groundbreaking proposition under AIA’s Total Corporate Solutions. It is a dynamic resource that empowers employers to align with their employees’ wellbeing needs. Perhaps it is improved medical coverage and streamlined access to the care they require. Or it is to feel supported at the workplace when struggling with their mental health, whether it is in the form of guidance or insurance coverage for treatment. It does not stop there. Employees are also looking for a greater sense of purpose

at work—to feel more connected to their surroundings and become their best selves at work. This is where WorkWell with AIA truly shines. Through its four key pillars, it provides tailor-made solutions that meet the multi-faceted needs of various organisations.

With WorkWell with AIA, the future of employee benefits has arrived, meeting the diverse and evolving needs of both employers and employees

INSURTECH INITIATIVE OF THE YEAR - MALAYSIA HEALTH INSURANCE INITIATIVE OF THE YEAR - MALAYSIA STRATEGIC PARTNERSHIP OF THE YEAR - MALAYSIA Live Well inspires employees to take charge of their physical health through a range of tools offering personalised health interventions and efficient access to an extensive healthcare network. Think Well promotes workplace mental health with access to providers for coaching, counselling, guidance, as well as with insurance coverage for visits and hospitalisation. Plan Well equips employees for financial wellness with AIA’s range of professional financial planning products, services, and solutions. Feel Well fosters a sense of purpose through an inclusive, supportive work environment as well as community involvement.

for mental health treatments, and unlimited support that includes one-on-one coaching, self-guided learning content, wellness workshops, webinars, and a 24-hour crisis intervention hotline. But having these benefits is one thing; making them accessible is another. AIA’s digital tools, such as the AIA+ app and AIA+ Customer Portal, offer seamless convenience where employees can enjoy fast requests and the issuance of outpatient guarantee letters, make claims, and receive reimbursement within five working days. Need a consultation on the spot? With AIA’s Digital Health Telemedicine service in partnership with DOC2US, employees can consult with healthcare providers from home and even have medicine delivered to their doorstep. If you're thinking about having medical treatment outside Malaysia, AIA offers a differentiated service by connecting you to the best quality care providers. Not only will you enjoy cashless access to treatments across various countries, but our centralised Regional Service Centre also makes it easier for you to plan and coordinate your elective treatment overseas. And if your employees need a push towards taking charge of their wellbeing, the award-winning Corporate AIA Vitality gives them a much-needed boost of encouragement to inculcate healthy habits in their lives and earn Vitality points for rewards. Additionally, employees will also have access to an exclusive Employee

Purchase Programme that is exclusively curated for employees to enhance their coverage affordably and close their protection gap. FULFILLING EVOLVING WORKPLACE WELLNESS NEEDS The workplace may be changing, but one thing remains constant: positive employee experiences drive engagement, productivity, and a company’s success. These are the real reasons why a company should invest in the right employee benefits, as it is an investment in its future. AIA’s Total Corporate Solution and WorkWell with AIA not only provide this comprehensive approach to empower the workforce but also drive positive change in the realm of employee benefits. This bold shift marks the first step in addressing evolving workplace wellness needs. As Malaysia’s largest employee benefits insurance provider, AIA leverages its experience and data-driven insights to further enhance the best possible solutions that promote health and happiness in the workforce, in line with its core principles of healthier, longer, and better lives. It’s time—health no longer confines itself to the visible. In today’s healthcare landscape, it encompasses a whole lot more to bring real meaning to wellness. AIA’s vision to realise this will continue to nurture happier, healthier employees to embrace a brighter, more productive future.

WorkWell with AIA, the future of employee benefits has arrived, meeting the diverse and evolving needs of both employers and employees. ELEVATING EMPLOYEE WELLNESS There’s more: in these evolving times, workplaces face fresh challenges, particularly in supporting the mental wellbeing of employees. The pandemic has heightened the importance of mental health as anxiety and depression rates surge. In Malaysia, 51% of employees grapple with work-related stress, but only 20% receive treatment. AIA steps in with an innovative mental health solution within the Think Well pillar of WorkWell. In partnership with the SEA-based digital mental health platform, ThoughtFullTM, this first-in-the-market employee benefit prioritises mental health. It grants employees access to specialised care, insurance coverage

WorkWell with AIA drives positive change in the realm of employee benefits

1 Mental Health Protection for the Workforce, The Star, Aug 16, 2022 2Workplace Mental Health: The Business Cost, Relate Mental Health Malaysia, 2020

INSURANCE ASIA 43

INSURANCE INITIATIVE OF THE YEAR - VIETNAM HEALTH INSURANCE INITIATIVE OF THE YEAR - VIETNAM

AIA’s dream is to help Vietnamese people live Healthier, Longer And Better Lives

Its transformation journey involves emphasizing health, turning advisors into Health Advisors, and introducing innovative insurance products like "Bùng Sức Sống 10+ with Vitality" to encourage healthier lives. employees, consultants, customers, and the community gradually understand health and make changes to their daily habits. To strengthen these three pillars, various healthy lifestyle activation programmes are being implemented not only within the company but also externally to build a healthy living community.

AIA implements healthy lifestyle activation programmes

ormerly in charge of the position of Chief of Marketing and Proposition, then leading the Agency Distribution team, Ms Le Vu Mong Ha – Chief Agency Officer AIA Vietnam, shared about AIA’s dream - 10 Million Vietnamese people live Healthier, Longer and Better lives, and how AIA has transformed to become a partner to customers. From “Payer” to “Partner” with health-led strategy According to Ms. Ha, since 2020, the AIA Group as well as AIA Vietnam has embarked on a journey of transformation from being a "Payer" to becoming a "Partner" This transformation aims to encourage one billion people to live Healthier, Longer and Better lives across Asia. In the next 3 years, AIA Vietnam will continue to build and improve the Health and Wellness ecosystem: "To pursue this transformation, AIA Vietnam has been focusing on three pillars to bring about strong changes from within the organisation to society," Ms Ha stated. Firstly, AIA Vietnam designs all services and products with a Health-led emphasis. In addition to life insurance and investment, healthcare solutions have become the unique value that AIA aims to provide to customers. Secondly, through various distribution channels that communicate and advise directly with customers, AIA Vietnam collaborates with service providers to develop training programmes to enhance medical knowledge and care skills for the entire advisory team. Thirdly, AIA Vietnam established a health content library providing valuable, useful, and trustable health information to help 44 INSURANCE ASIA

Each advisor is a health advisor Going beyond a team of trustable and reputable insurance advisors whose stories focused solely on protection and compensation, we have a journey to the shift of the insurance advisory team into AIA Health Experts, combining quantity with quality. They initiate conversations with customers about health and why choosing AIA as a "partner" rather than a "payer" provides assurance. This is why AIA Vietnam launched the firstever Health Academy programme in Vietnam. The unique feature of this academy lies in the fact that some training programmes are provided by the Healthcare Human Resources Training Center under the University of Medicine and Pharmacy of Ho Chi Minh City. By July 2023, more than 2,600 AIA Vietnam advisors had participated in the "Health Knowledge Training Academy" to gain insights into health. Amongst them, 200 advisors successfully completed the in-depth training programme under the guidance and sponsorship of the University of Medicine and Pharmacy, Ho Chi Minh City. "This is a crucial step to enhance the overall value and professional image, as well as the credibility of the AIA distributions when representing the AIA brand in the eyes of customers and the Vietnamese community," Ms Ha added. She emphasised that each AIA advisor must be a health expert to accompany

customers on the journey towards Healthier, Longer and Better lives. A first-in-market insurance product integrated with a health and wellness programme Speaking about "Uplift your life 10+ with Vitality" (“Bùng Sức Sống 10+ cùng Vitality”) the first-in-market insurance product integrated with a health & wellness programme, Ms. Ha pointed out: "Beyond the value of a regular life insurance product, "Bùng Sức Sống 10+ with Vitality" doesn't stop at investment benefits or risk coverage." Specifically, AIA Vitality is a scientifically proven health and wellness programme that helps encourage healthier lifestyles by helping customers understand their health, improve their well-being, and receive attractive rewards. In addition to the AIA Vitality rewards from the insurance product, customers also receive rewards from the AIA Vitality programme for maintaining a healthy lifestyle, such as gift vouchers from AIA Vitality partners. AIA Vitality acts as a daily guide, "holding the hand" of customers to remind them to develop healthy habits. With weekly challenges, customers receive rewards and practical benefits upon completion. AIA Vitality is integrated into AIA Vietnam's "super app," AIA+, and is available on application stores for both IOS and Android. Ms. Ha also shared that, in the near future, AIA will launch another flagship health proposition, creating a crucial milestone for AIA in the transformational journey, and strengthening AIA’s position in the insurance and healthcare industry. That strategy is a part of our mission to encourage Vietnamese people to live Healthier, Longer and Better lives.

AIA Vitality

AIA Vietnam's efforts to provide valuable health information and create a healthy living community

DOMESTIC LIFE INSURER OF THE YEAR - SINGAPORE ADVISERS INITIATIVE OF THE YEAR - SINGAPORE

AIA Singapore wins Domestic Insurer of the Year and Advisers Initiative of the Year in Singapore It was honoured for its launch of iSMART+ and for enabling people to live Healthier, Longer, Better Lives.

or AIA Singapore, a leading life insurer, navigating the challenging post-pandemic climate means making a deeper commitment than ever to its customers, stakeholders and the wider community. Having won the title of Domestic Insurer of the Year at the Insurance Asia Awards for its seventh consecutive year now, AIA Singapore has demonstrated continued agility and focus on its brand purpose of enabling people to live Healthier, Longer, Better Lives (HLBL). AIA Singapore shares that there is no simple path to success, only perseverance in developing the most compelling solutions, a heart to serve its customers’ diverse and evolving needs, and an unwavering commitment to the community. Building on its purpose to help the community live HLBL, AIA Singapore renewed its corporate social responsibility and commitments with the creation of the AIA Better Lives Fund, aiming to reach out to even more children and families in need. AIA Singapore also leveraged the Group’s status as the long-standing Global Principal Partner of Tottenham Hotspur Football Club and launched a series of initiatives around Singapore’s deep love of football, recognising the vital role that sports play in promoting a healthy lifestyle and its positive influence in people’s lives. Commitment to charity and innovation In 2022, AIA Singapore raised over S$500,000 for its charities through various initiatives including Grant-A-Wish, AIA Better Lives Fund Charity Golf and Dinner, and the AIA Kids’ Football Clinics. In addition, AIA’s Green Pledge, a contribution of S$5m over

a period of five years to the Garden City Fund’s Plant-ATree programme, continues to help create a greener and more sustainable city through the collective efforts of its employees, management, and partners. This year, AIA Singapore makes an even stronger entrance with a double celebration, having also clinched the award for Advisers Initiative of the Year with the launch of iSMART+ – an innovative super-tool that was developed exclusively for its insurance representatives to help them with day-to-day client management. Revolutionising client management AIA Singapore identified a common challenge among its insurance representatives – significant time was spent on administrative duties, impacting the insurance representatives’ capacity to do their best in building closer relationships with their clients. To tackle the challenge of managing and assisting multiple clients effectively and efficiently, iSMART+ was introduced. The tool provides a one-stop solution that allows for the effective management of clients’ information, needs, preferences, and policies, remarkably reducing the amount of time that insurance representatives spent on administrative tasks. With the help of iSMART+, insurance representatives can now focus on deepening their relationships with their clients, helping them plan and protect what matters most to them. iSMART+ improves customer relationship management by precisely informing insurance representatives on when and how to engage with clients in a compelling manner. Customer Lifestyle Triggers based on analyticsbacked models are pushed to insurance

representatives through iSMART+, providing personalised customer insights that empower insurance representatives to go beyond presenting general statistics and customise their pitches and recommendations based on a keener understanding of their clients – from their personal preferences to their specific needs and insurance gaps. With this, insurance representatives are able to provide a holistic service-oriented experience that touched on what clients needed the most. Placing customer needs first At its core, iSMART+ is about placing customer needs at the forefront of its purpose, like everything AIA Singapore does. To improve customer engagement and satisfaction, the tool was developed with multiple innovative features. It provides its insurance representatives with access to pre-approved marketing content for social media postings, helping them develop further conversations through social media. Alerts and notifications help insurance representatives be aware of customer milestones such as birthdays, and additional in-app features allow them to send gifts to clients as conversation starters. AIA insurance representatives are able to use iSMART+ via its app or through any browser, to stay productive and responsive to clients’ needs, anytime, anywhere. The app saw unequivocal success, with an 85% adoption rate across AIA’s tied distribution channel of over 5,000 insurance representatives. iSMART+ assisted AIA insurance representatives in generating approximately 126,000 leads in 2022 with healthy conversion rates. iSMART+ illustrates how AIA Singapore continually revolutionises digital experiences through its Technology, Digital and Analytics (TDA) strategy, which marries human touch and digital technologies seamlessly to provide the highest standards of service to customers. By prioritising high-tech, hightouch and high-trust services, AIA Singapore was able to build and offer a superior user experience with personalised advice, services and support, demonstrating its innovativeness and people-centricity.

For AIA Singapore, success lies in persevering to develop compelling solutions, serving diverse customer needs, and an unwavering commitment to the community INSURANCE ASIA 45

INTERNATIONAL LIFE INSURER OF THE YEAR - THAILAND

AIA Thailand launches second year of “AIA Healthiest Schools”

The programme focuses on healthy eating, active lifestyles, mental well-being, and health sustainability, aligning with AIA's mission for 'Healthier, Longer, Better Lives.'

AIA Healthiest Schools event

IA Thailand launches the 'AIA Healthiest Schools Year 2' programme following its first year of high success. The programme aims to encourage healthy living habits amongst students aged 5 to 16 by promoting healthy eating, active lifestyles, mental well-being, as well as health and sustainability. The programme also emphasises creating sustainable changes to enhance the health and well-being of Thai youth, in line with AIA’s commitment to 'Healthier, Longer, Better Lives.' Fostering healthier schools nationwide In the past year, numerous schools from all over the country showed interest and submitted entries for the competition in the project. This led the AIA Group and AIA Thailand to continue the 'AIA Healthiest Schools' for the second year, providing an opportunity for schools nationwide to participate and showcase their school projects. A qualified committee including representatives from the Ministry of Education and the Digital Economy Promotion Agency (depa), will participate in judging the entries. Winning schools will be rewarded with prizes worth up to 2 million baht, along with educational and sports equipment, and an expertise guide to address health issues of students. This effort plays a crucial role in promoting education and supporting ongoing health-related activities. Additionally, the winning school will represent Thailand in the regional Asia competition, competing for a grand prize worth up to 3.5 million baht. Interested primary and secondary schools

can register and download all teaching materials at no cost via ahs.aia.com/th/th/ starting today, to initiate activities or further develop the project towards establishing a sustainable healthy school environment. Entries for the competition can be submitted until 8th March 2024 and the winning schools will be announced on 8th May 2024. A vision for a healthier future Mr Nikhil Advani, Chief Executive Officer of AIA Thailand, said, “In the first year of the programme, AIA has seen sincere efforts by every participating school and we are proud that they have used teaching materials developed under this programme in their curriculum, allowing this programme to contribute to building a sustainably healthy society for Thai students and young people, in line with our pledge for ‘Healthier, Longer, Better Lives’ which is a mission that AIA is fully committed to, with an aim to increase health and quality of living for Thai people. The AIA Healthiest Schools Programme supports young people to live healthy lives and have positive habits for their own health and community, focusing on four topics, including healthy eating, active lifestyle, mental wellbeing and health and sustainability. This is because AIA believes good health starts from a young age and we hope this programme will be a starting point for building a sustainable future for Thai children, communities and society at large.” Celebrating health champions In June 2023, AIA Thailand honoured a total of 34 schools at the AIA Healthiest Schools

Nikhil Advani, CEO of AIA Thailand

Awards Ceremony 2023 held in Bangkok to celebrate schools hailed as models for encouraging healthy habits amongst students and school staff. The awards were presented by representatives from the Ministry of Education, the Digital Economy Promotion Agency (depa), and AIA Thailand. Apart from showcasing the various initiatives from schools nationwide, a panel discussion was also organised to discuss how to ensure a healthier future for the younger generation. The Primary School Winner for the first year of the programme was Daroonwittaya Tedsaban Muangnan (Bansuantan) School. The school organised various health-promoting activities through the “Happiness in School” project, including growing organic vegetables, safe food, waste collection, physical workouts, praying, and Good Will Bank. Meanwhile, the Secondary School Winner was Tessaban 1 Kittikachorn School. The schools used the programme’s teaching resources and conducted a survey amongst students, teachers and parents to organise activities including “Good Food Good Mood Project” which focuses on eating healthy food, checking contamination in drinking water, promoting physical workouts and finding students’ recreation space. The school also has a “Friendly Clinic for Teen” where students can talk about their personal issues and seek advice, to promote sustainable health and quality of life.

'AIA Healthiest Schools Year 2' programme aims to encourage healthy living habits amongst students aged 5 to 16 by promoting healthy eating, active lifestyles, mental well-being, as well as health and sustainability 46 INSURANCE ASIA

INSURANCE ASIA 47

DIGITAL INSURANCE INITIATIVE OF THE YEAR - HONG KONG

Zurich Insurance (Hong Kong) secured two wins at Insurance Asia Award 2023 Zurich partnered with Citi to debut first digital lifestyle insurance plan, offering personalised coverage for customers. and user-friendly digital insurance solution that can be tailored to customers’ specific requirements, comprehensively covering their daily lives. Mobile-first, seamless customer journey – a few taps on the mobile app to get personalised protection for their life Zurich and Citi aimed to simplify the Jim Qin said, “Agility is the key to a good strategy, enabling us to swiftly develop and introduce travel insurance products during a critical time, bridging insurance purchasing the coverage gap and providing timely support.” journey, eliminating the complexities often associated with buying he pandemic over the last few years insurance, such as the hassle of filling out has drastically accelerated the use of forms or navigating multiple platforms. One of technology at an unprecedented rate, the greatest benefits of the Plan is its mobilemaking digitalisation in the insurance industry first approach. Through the user-friendly Citi much more imperative than before. During the Mobile® App, customers can now purchase the lockdowns and social distancing measures, Plan with customised coverage with just a few Zurich Insurance (Hong Kong) (Zurich) taps. The entire process, including payment, recognised a significant shift in customer can be completed within the app, and policies behaviour. Customers increasingly relied on are issued instantly, streamlining the process to digital channels as their primary means of be faster and more convenient than ever before. accessing insurance services. Jim Qin, Chief Executive Officer of General According to Zurich's latest sales data, Insurance of Zurich Insurance (Hong Kong) there has been a significant 40% increase said, ‘We are delighted to collaborate with in the number of new general insurance Citi to leverage the immense advantages of policies issued through its online direct API technologies and digitisation to access sales channel since the beginning of the a new customer base. Hong Kong's market is year until June, when compared to the same dynamic and constantly evolving, and we remain period before the COVID-19 pandemic. committed to addressing diverse protection This surge in online sales reflected a needs by providing our customers with the notable shift in consumer preferences, with utmost convenience and flexibility through our customers now favouring faster and more innovative and personalised products.” direct methods to apply for insurance. In response to this emerging trend, Zurich One product, five customised benefits to cover promptly adjusted its operations to cater various aspects of an individual’s daily life to the evolving needs of its customers. To cater to the demands of Hong Kong Last year, Zurich and Citi joined forces to residents for speed, flexibility, and efficiency, introduce the Zurich Lifestyle Insurance the Lifestyle Insurance Plan has been designed Plan (the Plan), which was the first digital to offer customers the ability to personalise lifestyle insurance plan available on the their coverage. With a minimum monthly bancassurance platform in the market. Built premium of HKD 25, customers can select with a mobile-first approach and supported from the following five different protection by an API infrastructure, the Plan perfectly options, tailoring their plan to suit their aligns with the growing customer demand individual needs, on top of the basic worldwide for digitalisation in the insurance industry. personal belongings protection. It served as a seamless and customisable 1. Mobile phone protection insurance proposition that could be easily 2. Sports accidents accessed through the Citi Mobile® App. This 3. Outpatient medical protection collaboration represented a significant 4. Rental income protection step for two leaders to offer a convenient

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Worldwide personal belongings protection (Upgraded) The modularised protection options allow customers to mix and match coverage that is best suited to their lifestyle. The Plan offers customers the flexibility to change their coverage at the time of policy renewal. Customers can switch, add, or modify selective benefits, ensuring that their insurance plan remains aligned with their changing circumstances. Mendy Chung, Head of Insurance at Citibank Hong Kong, added, ‘The launch of Zurich Lifestyle Insurance Plan signifies a remarkable advancement towards our mutual goal of creating a comprehensive digital ecosystem that provides convenience and empowers our customers. We will continue to innovate and optimise customer experience with us.’ The Plan is also uniquely embedded in the new credit card activation journey. As customers go through the activation process, they also have the opportunity to purchase the Plan with just a few clicks. Furthermore, customers can conveniently pay the premium using their newly activated credit card. This integration minimises any unnecessary steps or complexities, providing a streamlined experience for customers. At the heart of our business lies a strong dedication to customer centricity. By leveraging the infinite benefits of API technologies and digitalisation, the introduction of the Zurich Lifestyle Insurance Plan exemplifies our unwavering commitment to our customers, ensuring that their needs are met with tailored solutions and a seamless insurance journey.

TRAVEL INSURANCE INITIATIVE OF THE YEAR - HONG KONG

Zurich's quick response to the evolving travel landscape, including the launch of the Travel VIVA Insurance Plan, demonstrated their commitment to addressing travellers' concerns during the pandemic

he travel sector was amongst the hardest hit by the coronavirus pandemic back in 2020 and 2021 facing significant challenges including widespread implementations of lockdowns, travel restrictions and health concerns. After the fifth wave of COVID-19 in Hong Kong last year, the government lifted the travel restrictions to reduce the required quarantine period to seven days in April 2022, which alleviated travel concerns and facilitated the movement of people to a certain extent. Later, in December 2022, the Hong Kong government took a significant step by cancelling the quarantine restriction, signalling a return to a normal travel experience. Despite the gradual recovery of international tourism, travellers remained cautious about the potential risks induced by COVID-19, including the medical costs incurred due to the contraction of COVID-19 and the unexpected expenses caused by travel disruptions such as unanticipated mandatory quarantine. They were mindful of the potential expenses and uncertainties associated with these disruptions. First in the market to identify travellers’ major concerns and provide an instant insurance solution Zurich recognised the need for comprehensive travel insurance products that address the unique challenges posed by COVID-19 and took swift action to be the first market mover to launch the Travel VIVA Insurance Plan (Travel VIVA), which was a brand-new product tailored to address traveller’s concerns under the new normal. Zurich launched the brand-new Travel VIVA in July 2022 in response to the surge in demand for protection against COVID-19 following the easing of travel curbs in April. To address the worries of travellers during the pandemic, Travel VIVA was designed to provide extensive protection against the uncertainties brought by COVID-19. Travel VIVA offered coverage for quarantine hotel expenses to alleviate the financial burden on travellers. We also provided coverage for trip cancellation and interruption, recognising the potential disruptions caused by travel restrictions and unforeseen events related to COVID-19. Additionally, our medical coverage was up to HKD 1,500,000, ensuring adequate protection during a global health crisis.

Jim Qin, Chief Executive Officer of General Insurance of Zurich Insurance (Hong Kong) (left) and Mendy Chung, Head of Insurance at Citibank Hong Kong (right)

It only took four weeks to launch the brand-new product from idea generation to implementation. The swift action demonstrated Zurich’s agility and responsiveness to the dynamic market conditions and evolving customer needs. Jim Qin, Chief Executive Officer, General Insurance Zurich Insurance (Hong Kong), said “We constantly think from the perspective of our customers and swiftly respond to their needs. Agility is the key to a good strategy, enabling us to swiftly develop and introduce travel insurance products during a critical time, bridging the coverage gap and providing timely support.” Timely adjustment of our strategy in response to market demand to maximise the benefits of our customers The introduction of Travel VIVA was well received by the market, reflecting the strong demand for comprehensive travel insurance coverage during the pandemic. This positive response translated into a notable and significant increase in sales volume, as travellers recognised the value and benefits provided by our insurance offerings. Being customer-centric and dynamic, Zurich promptly reviewed our travel products to bring maximised benefits and convenience to our customers. Based on customers’ feedback, we decided to strengthen the Get “Z” Go plan with more comprehensive COVID19-related coverage, whilst maintaining three plan categories, allowing customers to be flexible in selecting different levels of coverage to their individual needs and demise Travel VIVA in October 2022. The revamped Get “Z” Go proved to be another success. The wide market response of Travel VIVA and Get “Z” Go affirmed our commitment to continuously evolve and

innovate in order to meet the evolving needs of customers and solidify our position as a trusted provider in the travel insurance industry. Sales volume continued to soar despite COVID-19, achieving an impressive growth of 1,600%. Compared to the second half of 2021, the number of insured increased by 1,600% year-on-year for the same period. In addition, there was an eightfold increase in new travel claims submissions in the second half of 2022 against the same period in 2021, reflecting the significance of our products. Zurich’s travel insurance strategy has been a huge success along the way, driven by its close monitoring of market development, quick responses and customer-centric approach. Zurich’s pioneering initiative and swift adaptability have set a new benchmark in the travel insurance industry, reinforcing the market leader position.

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CUSTOMER SERVICE INITIATIVE OF THE YEAR - MALAYSIA

Zurich Malaysia: Setting the Benchmark in Customer Commitment and Sustainable Impact The insurer is leading the way in customer care and environmental responsibility.

Junior Cho, Country CEO/Head of Zurich Malaysia

he world of insurance and takaful solutions is characterised by shifting customer demands, evolving societal risks, and a greater focus on innovation and sustainability. To adapt to these dynamic changes, Zurich Malaysia has positioned itself as a responsible corporate citizen, dedicated to customers, the planet, partners, and people. This commitment was recently celebrated and recognised at the Insurance Asia Awards 2023, where Zurich Malaysia was awarded the prestigious “Customer Service Initiative of the Year” award. It is a testament to Zurich Malaysia’s dedication to going beyond the conventional, ensuring that every customer interaction is maintained at the highest quality and calibre. Junior Cho, Country CEO/Head of Zurich Malaysia, said, "We are deeply honoured to receive the Customer Service Initiative of the Year award at the Insurance Asia Awards 2023, reaffirming Zurich Malaysia's unwavering commitment to 'Care for What Matters’ and embracing innovative practices. Our continuous enhancement of customer experiences showcases our genuine care for our people and our customers." Zurich Malaysia has recognised the evolving needs of Malaysians in the digital age and has seamlessly integrated technology into its services. By harnessing the power of AI and data analytics, Zurich Malaysia has revolutionised its customer service experience, streamlining processes with modernisation and personalised experience solutions. Embodying care in countless approaches with ‘Care For What Matters’ Zurich Malaysia sets itself apart as a leading force in the insurance and takaful industries by consistently demonstrating its dedication 50 INSURANCE ASIA

to innovation and customer-centric products and solutions. Being the only global brand that holds all four insurance and takaful licenses, Zurich Malaysia offers a broad range of insurance and takaful solutions under one brand to ensure that customers have comprehensive and bespoke coverage based on their personal needs. Reaffirming its commitment to creating a brighter future through positive impact, Zurich Malaysia has launched the new ‘Care For What Matters’ brand campaign, which encompasses an array of impactful initiatives to embrace a sense of responsibility towards what truly matters. Mr. Cho added, "We firmly believe that our actions today pave the way for a brighter tomorrow. Our ‘Care For What Matters’ brand campaign is an extension of our ongoing efforts in supporting and caring for people from all walks of life. It signifies our determination to create a brighter future for Malaysians that is not only financially secure but also socially and environmentally responsible." Sustainability is a key focus for Zurich Malaysia, as demonstrated by its partnership with the Tropical Rainforest Conservation & Research Center (TRCRC). Through the Zurich Cares project, Zurich Malaysia is committed to long-term reforestation and community empowerment in Merisuli, Sabah. Over 4,169 endangered, rare and threatened tree species have been planted as of August 2023, surpassing initial targets of 3,000. Additionally, Zurich Malaysia launched the Urban Climate Resilience Program (UCRP) in collaboration with the Z Zurich Foundation. This program aims to build sustainable and

resilient communities that can withstand, recover from, and thrive in the face of climate-related disasters. The C40 Cities Climate Leadership Group (C40) and the Global Resilient Cities Network (R-Cities) will support local councils in Kuala Lumpur and Malacca respectively. Zurich Malaysia aims to be at the forefront of bringing impactful changes in the adaptation of systems in selected cities in Malaysia, ensuring enhanced support for those who are vulnerable. Community Impact Initiatives Zurich Malaysia’s outreach extends beyond environmental causes. Over the past year, Zurich has launched several programs to support local organisations and communities, including donations and zakat contributions. Also, Zurich Community Week was organised this year to raise awareness about mental health through the transformative power of art. Through various community investment initiatives, Zurich Malaysia endeavours to make a positive and lasting impact on the surrounding communities and remind all Malaysians about the importance of caring for oneself and others. Zurich Malaysia's journey is defined by its efforts that extend beyond day-to-day business. With a focus on customers, the planet, partners, and people, Zurich Malaysia strives to make a real impact through sustainable initiatives, innovative technology, and enhanced customer offerings. When it comes to finding a partner that truly cares, Zurich Malaysia stands out, as its actions consistently demonstrate its dedication to ‘Care For What Matters’.

Zurich Malaysia’s senior management team, alongside valued partners at the launch of the new ‘Care For What Matters’ brand campaign and Urban Climate Resilience Program.

Zurich Malaysia is leading the way in customer care and environmental responsibility, setting a benchmark in the insurance and takaful industry

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INSURTECH INITIATIVE OF THE YEAR - JAPAN UNDERWRITING INITIATIVE OF THE YEAR - JAPAN AI INITIATIVE OF THE YEAR - JAPAN

Aflac's digital transformation strategy driven by core values and unique initiatives

Aflac accelerates digital transformation, driven by its founding philosophy, corporate values, and brand promise, to provide new value to stakeholders.

Aflac Life Insurance Japan Ltd receives 3 wins at Insurance Asia Awards

ased on core values indicated in the founding philosophy of “helping save cancer sufferers from economic hardship,” the Aflac Corporate Philosophy, and the brand promise (Creating "living in your own way"), Aflac has been accelerating digital transformation (DX) to continue providing new value to its five major stakeholders, i.e., customers, business partners, employees, shareholders, and society. Promoting “DX@Aflac,” Aflac’s unique digital transformation strategy By promoting DX based on core values, Aflac, as a leader in its core business of "insurance

for living," will provide products and services of value to customers through digital technology. It will also use digital technology in new business areas other than life insurance business to create new value that transcends the boundaries of insurance. An IoT smart mirror that is integrated into daily life and contributes to enhancing quality of life of users and their family members Aflac provides "Aflac Mirror (for home use)," an IoT device that provides content supporting the users' physical care by measuring facial skin temperature and estimated pulse rate through the daily act of looking in a mirror. This service includes a feature with which users can easily share measurement results with their family members who live far away. It can also be used for health management and safety confirmation of parents living elsewhere. Optimising the scope of insurance underwriting with AI-powered data analytics With the “Underwriting Standard,” Aflac has succeeded in optimising the scope of insurance underwriting, by using company-

Aflac Life Insurance Japan Ltd team

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owned data related to declaration and benefits to either tighten or relax the underwriting criteria. Introducing this Standard has made it possible to not only ensure fairness amongst policyholders, but also consider whether there is room for underwriting an insurance policy to cover injuries and diseases that would not have been accepted in the past. Improving the speed and quality of system development with Aflac’s unique AI model By using its unique AI model, Aflac succeeded in “AI-Testing,” an automation of system development, verification and result reporting, for the first time as a life insurance company in Japan. The implementation has significantly reduced the traditional development and verification processes, sparing time for working on more valueadded operations in an effort to continuously strengthen and streamline operations. Aiming to leap forward to become the leading company in "Creating Living in Your Own Way," Aflac will work to create new value that can be shared with the society by further accelerating its digital transformation initiatives.

Aiming to leap forward to become the leading company in 'Creating Living in Your Own Way,' Aflac will work to create new value that can be shared with society by further accelerating its digital transformation initiatives

Embedding protection at the point of need Headquartered in Singapore with an international footprint, bolttech connects insurers, distribution partners and customers to make it easier and more efficient to buy and sell insurance. bolttech is building a global technology-enabled ecosystem for embedded insurance, enabling all kinds of businesses to seamlessly add insurance to their customer journeys. Leveraging our proprietary technology and deep insurance expertise, we work with over 230 insurers and 700 distribution partners across 30+ markets in Asia, Europe and the United States to close the protection gap worldwide. Discover how our world-leading ecosystem for protection and insurance can help you unlock new opportunities. Find out more at bolttech.io or contact us at enquiries@bolttech.io

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INSURANCE INCLUSION INITIATIVE OF THE YEAR - VIETNAM INSURTECH INITIATIVE OF THE YEAR - VIETNAM

Empowering Financial Accessibility through HIVE by Income’s Embedded Finance Proposition HIVE By Income is revolutionising the insurance industry in Vietnam by partnering with forward-thinking entities, offering affordable and stackable products that prioritise convenience and financial inclusion.

JupViec Care customers

IVE By Income (HIVE) drives financial innovation through strategic synergies with regulators and forward-thinking partners. Our mission revolves around shaping the future of embedded finance, including within the gig economy, the driving force behind over 60% of Vietnam's labour force1. HIVE provides innovative solutions that go beyond just affordability and flexibility, but also provide convenience and control to individuals. With purpose, we proactively bridge the gap with regulatory bodies, through our technological capabilities and the transformative impacts of our financial products. Our influence stretches to Vietnam, where we are steadfast in cultivating alliances that echo our commitment to drive greater insurance access. This conviction resonates through collaborations with like-minded entities such as JupViec and TPBank. Through this strategic approach, partners infuse HIVE's technology, seamlessly embedding a diverse spectrum of insurance products into their offerings, thereby

elevating their customers’ journey with increased value. This solution not only amplifies convenience and costeffectiveness for our partners but also perpetuates a seamless customer experience, cultivating lasting loyalty. These partnerships serve as a catalyst for reshaping the landscape of insurance acquisition, ushering in an era where accessibility and simplicity redefine the industry norms. Our stackable pay-per-transaction model offers strong customer value, prioritising affordability, convenience, and control. This value resonates throughout Vietnam, especially within the gig economy, a space where financial mobility holds paramount importance. As we continue to innovate, we actively collaborate with governments and the digital ecosystem to ensure our products serve as vehicles for fostering financial inclusion. Driving financial inclusion with ecosystem partners in Vietnam An example of HIVE's innovative product offering is JupViec Care, an industry-first product driven by this model. JupViec Care is a personal accident stackable pay-perjob microinsurance designed to cater to the needs of gig workers, such as domestic helpers in Vietnam. With affordable premiums starting from S$0.12 per micro policy (1% of their monthly income), domestic helpers can enjoy continuous coverage as premiums are auto-deducted from their e-wallets after each completed job, ensuring that coverage stacks over time. In driving the adoption of JupViec Care, HIVE employed a holistic approach that combined product and education to break down perceived barriers of insurance complexity and inaccessibility. Through extensive offline

and online education efforts, including workshops, 1-on-1 HR talks, and product ambassador training, JupViec Care garnered a remarkable 90% face-to-face attendance rate amongst domestic helpers. The impact of JupViec Care extends beyond numbers, it promotes financial literacy and independence amongst domestic helpers, empowering them to secure their financial future with ease. With over 40% adoption rate, JupViec Care has significantly improved the lives of more than 400 domestic helpers, with approximately 40,000 policies issued to date. The success is not only about driving financial inclusion but also about promoting transparency and flexibility through innovative and userfriendly insurance products. JupViec Care is one of several successful products of HIVE's transformative platform. Another groundbreaking partnership involves TPBank, where HIVE seamlessly embeds microinsurance into today’s digital banking journey. TPBank customers experience enhanced engagement and added value as they effortlessly accumulate insurance coverage with every fund transfer or payment. This innovative offering marks just the beginning of HIVE's exploration into how embedded insurance can seamlessly integrate within the overall banking experience. The flexible pay-per-transaction microinsurance, with premiums starting from just VND 5,000, sets a new industry benchmark, elevating the digital banking journey and reshaping insurance accessibility for the masses. This powerful collaboration between HIVE By Income, PTI and TPBank offers personalised, accessible, and customisable coverage, paving the way for future innovations and advancements in the industry. The success of HIVE by Income has been recognised at this year’s Insurance Asia Awards, as it clinched the following awards - Insurance Inclusion Initiative of the Year Vietnam and the Insurtech Initiative of the Year - Vietnam. These accolades not only validate the impact of JupViec Care but also cement HIVE by Income as a true innovator and game-changer in the insurance industry.

HIVE by Income's commitment to financial innovation and accessibility in Vietnam is evident through its strategic partnerships and innovative insurance products 1

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http://english.molisa.gov.vn/Pages/News/Detail.aspx?tintucID=236888

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Grand Guardian Nippon Life Insurance Co.,Ltd has secured the prestigious 2023 International Life Insurer of the Year – Myanmar and New Insurance Product of the Year – Flexi Life accolades from the esteemed Insurance Asia Awards, marking a third consecutive year of victory. GGI Nippon Life's success is attributed to its strategic partnership with Nippon Life, Japan's leading life insurer, enabling the provision of top-quality life insurance products. Committed to its mission and vision of protecting and supporting the people of Myanmar, GGI Nippon Life aims to remain the top insurance company in Myanmar.

Securing Your Furture

www.gginipponlife.com 56 INSURANCE ASIA

Certainty in a Shifting Landscape Roller-coaster prices, supply chain disruption, political unease and more — today, companies must navigate the complexity of interconnected challenges like never before. At Aon, we provide advice and solutions that give our clients the clarity and confidence to make better decisions to protect and grow their businesses. aon.com

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DOMESTIC GENERAL INSURER OF THE YEAR - CAMBODIA MARKETING INITIATIVE OF THE YEAR - CAMBODIA

Forte: A catalyst for positive social impact in emerging Southeast Asia's insurance landscape Empowering people and communities through access to financial protection in Cambodia and Laos.

From left: Accepting the ASEAN award for Cambodia’s Best Inclusive Business -- Mr Ny Lyhoung, Business Unit Head of Micro and Agriculture Insurance at Forte; Mr Youk Chamroeunrith, Group CEO of Forte Group; Mr Prou Sythan, CEO of Forte Life Assurance and Dr Touch Chandara, Senior Manager of Group Underwriting at Forte General Insurance

aking waves in the insurance industry across Cambodia and Laos, Forte was founded in 1999 with a vision to protect and empower everyone in the region for a better future. Named Insurance Asia's Domestic General Insurer of the Year - Cambodia and the Marketing Initiative of the Year - Cambodia, these achievements reflect Forte's marketleading position and successful launch of their brand refresh with the new tagline “Live with confidence,” revitalising their brand in a bold and modern direction to provide a better experience for customers. Beyond this, driving financial inclusion is important to Forte, and it has also been recognised for its efforts in spearheading growth in agriculture and health insurance in Cambodia. In particular, their Weather Index Crop Insurance (WICI) plays a pivotal role in supporting the agricultural sector in Cambodia by providing financial security for farmers. WICI insurance offers coverage for losses resulting from natural disasters such as droughts or heavy rainfall. This has been a game-changer for farmers, providing them with financial security and the confidence to continue their operations in the face of unpredictable weather patterns due to climate change. Forte's efforts had recently been recognised by ASEAN, receiving Cambodia's Best Inclusive Business Company award at the Sixth ASEAN Inclusive Business Summit. The Group CEO of Forte Group, Mr. Youk Chamroeunrith, graciously accepted the award, stating that it serves as a testament to Forte's commitment to ensuring financial security for people at all levels of society. “This recognition has further fueled our determination to continue working towards enhancing the accessibility and affordability 58 INSURANCE ASIA

of insurance services in Cambodia and Laos. We firmly believe that everyone deserves a safety net, and we remain steadfast in transforming that belief into reality,” Mr. Youk said. Empowering people and communities through access to financial protection Forte aims to empower local communities by providing them with access to financial protection, enabling underserved communities to recover and rebuild in case of unforeseen circumstances. Forte's commitment to inclusivity extends beyond its services. The company collaborates with the Cambodian government, microfinance institutions, and various organisations to support sustainable agricultural practices. This ensures financial protection for vulnerable local communities and enhances their expertise in areas such as key crops and aquaculture.

Achieving a solid foundation for growth in the region Forte was recently given an upgrade in their credit ratings to AA+ (National Scale) and B+ (International Scale) from Global Credit Rating (GCR), a renowned financial rating agency. This upgrade is a testament to their strong financial performance, prudent underwriting strategies, good diversification across different lines of business, and a leading market position of 45% market share in Cambodia. With the ratio of the national gross written premium (GWP) of the entire Cambodian insurance industry to the gross domestic product at roughly 1.1%, there is a lot of room for growth. Offering both general and life insurance, Forte provides a wide range of insurance solutions for both businesses and individuals. As of today, Forte also has over 75,000 partnerships with hospitals and medical centres worldwide. With a strong financial standing, a commitment to inclusivity, and a team of dedicated professionals with a strong sense of social purpose, Forte remains true to its original mission of providing innovative, customer-focused products and services, building capacity in people and contributing to the progress of the insurance industry in the markets it operates in. It is a positive signal of Forte’s potential for continued growth and stability to make an even bigger impact in the years to come and to empower individuals and businesses alike to forge ahead with confidence. Discover more about Forte on their website: www.forteinsurance.com

Forte employees volunteering in local communities to encourage environmentally friendly practices and organise tree-planting initiatives

We firmly believe that everyone deserves a safety net, and we remain steadfast in transforming that belief into reality

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OPINION

DIANA GUZMAN

Insurance's role in the transition to a low-carbon global economy

limate change is one of the most existential problems of our time. As the world transitions towards a low-carbon economy, the insurance industry has a pivotal role to play. Building the climate resilience of our portfolios and being discerning with our climate investing assessments will help insurers deliver on their fiduciary duty, safeguard long-term investments, continue creating value for stakeholders, and foster opportunities that deliver real positive change. On the other hand, integrating climate change considerations into products and services will be pivotal to supporting societies to adapt to a changing climate. There are three measures insurers can take towards realising a lowercarbon global economy and net zero by 2050. Responsible investing Insurance companies hold significant assets, with the top five biggest insurers in the world holding more than US$5t in assets. To build climate resilience and ensure our portfolios withstand a low-carbon future, insurers should integrate exclusions and divestment policies from assets that could be stranded in the transition towards a low-carbon economy, such as coal and coal-generated electricity. It is acknowledged that irrespective of geographic location, all countries bear a shared responsibility to reach net zero in the long run. However, it is important that insurers help emerging markets and developing economies (EMDEs) transition to low-carbon alternatives gradually, accounting for the different needs and nuances within each market, rather than imposing unrealistic demands. This is especially important given that not all markets and investee companies are at the same level of maturity in the decarbonisation process. To illustrate, developed economies have the resources to invest in renewable energy, while EMDEs are still heavily reliant on fossil fuels. Responsible investing also means raising awareness of challenges faced by EMDEs and developing workable solutions for them, while maintaining a shared ambition to achieve net zero in line with science. Additionally, insurers need to assume responsibility for spotting greenwashing practices of underlying assets and avoid misrepresentation of their own green credentials. In the absence of a unified industry framework, insurers can use greenwashing regulations in developed markets as a benchmark for their own activities to promote interoperability for green standards. Meanwhile, industrialising economies are well positioned to lead the development of “transition” frameworks given these issues are uniquely faced by the region. Industry engagement and advocacy Global insurers are closely integrated in the local economies where they operate. We understand local challenges and nuances while also having access to global best practices and perspectives. Thus, it gives us the opportunity to lead the conversation and contribute to the direction of policy, regulation, and advocacy. We can provide regulators with guidance and support on customised policy solutions for each market. For example, green bond instruments might be

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DIANA GUZMAN Group Director for environmental, social, and governance (ESG) Prudential Plc

similar across markets, but to accelerate local adaptation, policies need to address specific local challenges. Engaging with policymakers and other stakeholders in climate risk and transition investment-related initiatives could develop new regulations to accelerate the energy transition, including national transition pathways. Another area where insurers can focus is to encourage more disclosure regulations for more reliable data to allow thorough assessments of risks and opportunities, which also drives more effective engagement strategies with investee companies. In addition, EMDEs require collaboration on policy engagement and help mobilising capital across private and public partners locally and globally to meet their net zero goals. The insurance industry can lead and facilitate that collaboration, in adaptation of policies, providing investable instruments, and exchanging thought leadership. Innovating climate-related products and solutions One of the biggest barriers to the low-carbon transition is the financing gap. The International Energy Agency estimates that EMDEs need close to US$3t in annual investment by 2030 to reach their 2050 net zero goals, with the private sector needing to supply about 80% of the required investment. Financial companies can help to address the financing gap by playing complementary roles in providing a mix of capital with different characteristics, such as time horizon, risk profile or currency mix. Though awareness of climate risk is increasing, recent research by the World Economic Forum and Ipsos found that the number of consumers adopting green habits is falling. One way to mitigate this effect is to offer products that incorporate investment in green bonds, transition financing (finance raised/deployed to implement net-zero transition) and adaptation financing (to help communities reduce the risks they face from climate hazards) alongside protection products for consumers. In designing relevant protection products, it is important to understand the effects of climate change on people’s health. There is strong evidence for the impacts of climate change on the transmission and future spread of malaria and dengue, two of the most globally significant vector-borne diseases. This disease is a common cause of hospitalisation in endemic areas of tropical countries, along with increased medical costs associated with treatment facilities and household purchases of over-the-counter medication. As such, insurers are offering affordable products that protect against such infectious diseases. Conclusion It is critical for the insurance industry to respond to the challenge of transitioning towards a low-carbon economy. It should be carried out in a way that reflects geographical and sectoral challenges, in addition to considering the social implications of such plans. Change needs to start locally and we are in a unique position to combine global expertise with local awareness to advise and engage with various policymakers.

HEALTH INSURANCE INITIATIVE OF THE YEAR - PHILIPPINES DOMESTIC BROKER OF THE YEAR - PHILIPPINES

Cebuana Lhuillier Insurance Brokers’ Leading the Charge in Serving the Underinsured and Uninsured CLIB was recognised as Domestic Broker of the Year - Philippines for the second consecutive year. ProtectMax is an innovative sachettype insurance, making coverage for accidents, sickness, and fire/lightning incidents accessible to all. • Compulsory Third Party Liability (CTPL) ensures affordable government-required vehicle insurance and safeguards against unreliable insurance providers. • Miner’s Protect is the first and only insurance policy in the country designed for miners, who have long been identified as an uninsurable sector due to the high risks involved in their work. This offering provides protection in cases of personal accidents, offering much-needed peace of mind to miners and their families. These products, along with over 142 others offered through collaborations with 34 accredited partners, showcase our commitment to revolutionising insurance in the Philippines. Pioneer, CLIB’s biggest partner, testified to the company's continued mission of serving the underserved. “Our partnership with Cebuana Lhuillier allowed us to have a greater reach in providing insurance services to the underserved section—even in remote niches—of the Philippine population.”

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From left to right: Cebuana Lhuillier Insurance Brokers General Manager and Group Head Anthony Lou Bernabe, Cebuana Lhuillier President and CEO Jean Henri Lhuillier, Cebuana Lhuillier Chairman and Founder Philippe Jones Lhuillier, Cebuana Lhuillier Senior Executive Vice President Philippe Andre Lhuillier

ebuana Lhuillier Insurance Brokers (CLIB) has achieved a remarkable feat by clinching the prestigious Domestic Broker of the Year - Philippines award at the highly acclaimed Insurance Asia Awards for 2022 and 2023. The awards programme, widely recognised as a mark of excellence in the insurance sector, honours companies that not only navigate market challenges successfully but also make a significant impact on their clientele through their outstanding products and services. CLIB’s back-to-back wins can be attributed to its resolute commitment to addressing the significant gap in insurance coverage in the Philippines. In 2022, despite an increase in individuals with insurance coverage, a significant number of 49 million people remained underinsured or uninsured in the Philippines. CLIB was founded to champion the cause of the underinsured and uninsured with an uncompromising dedication to innovation, affordability, and accessibility. “Our journey at CLIB is rooted in our unwavering commitment to extending reliable and accessible microinsurance services to all Filipinos. As we strive to lead with innovation in the insurance sector, every step we take is driven by our dedication to our mission of financial inclusion, ensuring that all Filipinos can access the protection and security they truly deserve," said Jean Henri Lhuillier, President and CEO of Cebuana Lhuillier. "At Cebuana Lhuillier Insurance Brokers, we make sure that our customers are our top priority. Our team is dedicated to understanding the unique needs of our clients and delivering precisely tailored insurance products and services. We are driven by a shared pursuit of excellence and a steadfast

dedication to making a positive impact on the lives of Filipinos, corporations, LGUs, and MSMEs, particularly those in underserved communities," expressed Cebuana Lhuillier Insurance Brokers General Manager and Group Head Anthony Lou Bernabe. Comprehensive Insurance CLIB is the only comprehensive insurance brokerage, providing diverse channels alongside innovative, affordable, and readily available insurance products that cater to the needs of Filipino families, marginalised sectors, and micro, small, and mediumsized entrepreneurs (MSMEs), as well as corporations and local government units (LGUs). This commitment is evident through their TechBrick approach, ensuring that microinsurance is affordable and conveniently accessible. The Tech approach streamlines insurance purchase and availment, offering convenient options through digital channels. Meanwhile, the Brick approach leverages CLIB’s extensive network of over 3,000 Cebuana Lhuillier branches, effectively reaching Filipino families, marginalised sectors, companies, and MSMEs. Innovative Products and Services With its dedicated Products and Platforms Division, CLIB works closely with insurers and regulators to develop insurance products that address a wide range of needs, ensuring that every Filipino has access to suitable insurance solutions. • HealthMax is the most affordable health insurance in the Philippines, ensuring comprehensive healthcare for just PHP 3000 for PHP 150,000 one-year coverage (for as low as PHP 8 per day)

Empowering Vulnerable Communities CLIB’s mission goes beyond being an insurance brokerage company. They actively promote resiliency amongst Filipinos through various awareness and preparedness campaigns. These initiatives aim to empower grassroots communities, as exemplified by their Kumustahan events, where their dedicated team visits disaster-affected communities. During these sessions, they emphasise the importance of microinsurance and encourage everyone to consider it as a precaution against unexpected incidents. These events also provide an opportunity to expedite the processing of insurance claims. CLIB’s consecutive Domestic Broker of the Year - Philippines awards underscore its profound commitment to financial inclusion and its remarkable impact on the microinsurance landscape. CLIB's dedication to innovation, affordability, and accessibility has earned it a well-deserved place amongst the leaders in the Asia Pacific microinsurance industry. Their journey continues, relentlessly pursuing the goal of ensuring every Filipino has access to the protection they rightfully deserve.

Our team is dedicated to understanding the unique needs of our clients and delivering precisely tailored insurance products and services INSURANCE ASIA 61

DIRECT INSURER OF THE YEAR - JAPAN AUTO INSURANCE INITIATIVE OF THE YEAR - JAPAN

Revolutionising Car Insurance: An In-Depth Look at &e(Andy) by E.design Interview about "&e (Andy)," an automobile insurance developed by E.design. What are the features of "&e(Andy) (Andy)", the car insurance developed by E.design? Q: First of all, what are the features of &e(Andy) and how does it differ from conventional car insurance? A: The main point of "&e(Andy)" is to redefine the concept of car insurance. It is also an "evolving car insurance" that reflects customer feedback. Q: Up until now, car insurance has provided sufficient value to customers as a "contingency plan" and has satisfied them. Is that not enough? A: I think many people have the image that car insurance is something to be used after an accident. However, the concept of "&e(Andy)" is not "insurance to be used after an accident" but "insurance to prevent accidents from happening". Of course, we will provide the same extensive support in the event of an accident as we do with conventional insurance, but we also intend to be a presence that constantly watches over our customers in their daily car lives. Of course, we will provide a high level of "accident coverage" value as conventional car insurance. However, we would like to provide more value than that by shifting the conventional conception of car insurance as something that is used only after an accident has occurred. We want to be close to our customers, help them enjoy their car life more, and contribute to making the world a better place. We want to contribute to the betterment of the world. We want to engage with our customers and society from a broader perspective. We have been providing car insurance services only to policyholders, but we would like to create a "society without

Management team of E.design Insurance

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Project team of E.design Insurance

accidents" together with our customers by getting involved with their families, outside companies, and local communities. Analysing driving data and taking on the challenge of creating an accident-free society Q: What specific services does "&e(Andy)" provide in addition to its function as car insurance? A: "&e(Andy)" provides three major values at the price level of online auto insurance. 1. For policyholders: Safe driving diagnosis using a smartphone application and a dedicated sensor (3cm square) We provide a system that detects and records sudden steering, sudden braking, and "driving whilst listening" to the phone, and reports on one's own driving tendencies and risks. This system is expected to make drivers more aware of safe driving daily. 2. For family and friends: Sharing the results of the subscriber's driving diagnosis Your family members can also use the smartphone application to conduct a safe driving diagnosis. In addition, by sharing the results of the driving test with family members and friends who are subscribers to &e(Andy), we provide a function that allows them to practice safe driving together in an enjoyable way. 3. To local communities: Joint research with companies and donations to society With the cooperation of outside companies and local and regional governments, we would like to analyse driving

data obtained from subscribers in a manner that ensures anonymity and utilise the data for social traffic safety, such as surveying traffic volume and identifying areas with high accident risk. We would like to analyse the driving data obtained from contractors in a form that ensures anonymity and utilise it for traffic safety in society, including surveys of traffic volume and identification of locations with high accident risk. We are also planning a program to donate to local traffic safety initiatives. Data utilisation in E.design Q: What does data mean to E.design? A: We believe that it is extremely important to implement a data-driven PDCA cycle. We believe it is essential to promote datadriven management, and in April 2021, we established the Business Analytics Department as a Center of Excellence (CoE). This organisation is unique in that it has taken the approach of not relying on outside experts, but rather has used internal recruitment whilst building an organisation centred on employees and developing a framework for human resource development. Currently, the company is leading the company-wide data-driven efforts by building and maintaining a company-wide KPI dashboard and promoting the use of BI tools in each department within the company to improve the customer experience at &e(Andy).

The main point of '&e(Andy)' is to redefine the concept of car insurance, reflecting customer feedback as an evolving car insurance

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OPINION

DAVE RUSSELL AND RICK VANOVER Cyber insurance can't do it alone

n the surface, cyber insurance seems like the perfect solution for dangerous times. Especially during this time when cyberattacks have become more prevalent; cyber insurance can help organizations recoup some of the losses incurred on the bottom line. But for those looking for a quick fix to a growing problem, cyber insurance has its shortcomings. For one, it’s getting prohibitively expensive. The protection it offers doesn’t address the issue of how you got hacked in the first place and how you can stop hackers in the future. And it doesn’t secure your data or keep it available. Companies that do their utmost to insure their data and operations against cyberattacks have their hearts in the right place. But many are focusing more on getting insurance payouts without doing the necessary work to actually protect their mission-critical resources. What they need to do is augment the cyber insurance component with other types of “insurance” that ward off threats and back up data. What is cyber insurance? While the concept of insurance itself dates back to the 1300s, cyber insurance is a relatively new phenomenon. Insurance companies rolled out their first comprehensive cyber policies in the 2000s to offer a hedge against malware, ransomware and distributed denials of service (DDOS). Different policies cover liability for things such as the theft of third-party data as well as the costs of business interruptions and forensic services to investigate a breach. Cyber insurance can be useful. Sony, for instance, wished it had cyberfocused coverage to blunt the impact of the $171 million it spent to settle suits from the 2011 breach of its PlayStation Network. But a court ruled that Sony’s insurance policy covered damage only to physical property, not cyber-related costs. Companies that sign on for cyber insurance now are still considered early adopters. According to research, 82 per cent of organizations in the Asia Pacific region experienced at least one attack in 2022 and 23 percent suffered more than four attacks. Despite this, companies in APAC are slower in buying cyber insurance compared to those in more mature markets like the US. A Forrester study showed that 55% of organizations globally have some kind of cyber insurance and only 19% have coverage for cyber events beyond $600,000. That said, the number of adopters is steadily growing. In the Asia Pacific region, the market for cyber insurance is forecasted to grow by 20.7% CAGR from 2022 to 2028. So, why doesn’t everybody get cyber insurance? Cost is a big issue. Many companies that purchased commercial cyber insurance over the past five years have experienced doubledigit cyber premium increases, prompting risk managers to question its overall worth. Process is another high hurdle. Insurers paying out cyber claims tend to require prohibitive amounts of documentation – everything from cyber access reports to network traffic logs. These are difficult to retrieve even on a daily basis; after an incident occurs, IT departments scrambling to restore service will be set back further

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DAVE RUSSELL Vice President of Enterprise Strategy Veeam RICK VANOVER Senior Director ofProduct Strategy Veeam`

responding to insurance requests. Cyber insurance also doesn’t provide any ongoing protection against the threat itself. While hurricanes inflict significant amounts of damage, when they’re over, they’re over. There might be another storm next year, but the immediate threat has ended. Taking out insurance against ransomware doesn’t take away the immediate danger. If you pay off one bad actor, could others still have access to your system? Have you fixed the leak where hackers have found a way in The bottom line here is that cyber insurance plans can help, but organizations need to vigorously protect against threats and be prepared to solve cyber-related problems on their own. Here are a few ways they can do so: Patching – Creating a comprehensive patch management process is a critical part of maintaining an organization’s IT infrastructure. Repairing vulnerabilities quickly after the release of a new feature can help businesses protect their assets, avoid costly downtime and fend off ransomware attacks. Employee training – A study by IBM concluded that human error is the main cause of 95% of cyber security breaches. This underscores the need for employee training. Organizations should consistently review common security mistakes to ensure workers are using strong passwords, avoiding sketchy phishing attempts and protecting important company information. Sharpening incident response plans – It is critical to move quickly when a cyber disaster hits. Many organizations don’t even have a response plan that sets up a chain of command and a set of actions. Those that do have a plan should review it regularly and keep it updated. Instituting proper data backup – A secure backup infrastructure forms the last line of defense against ransomware. Integrating data protection within a comprehensive cyber preparedness strategy protects against outside threats and offers the quickest and most strategic way to ensure business continuity if a cyber event occurs. Cyber insurance is a worthwhile resource that can help organizations respond to a damaging breach. But it’s not enough. Adding in some common-sense cyber preparedness techniques can provide the high level of insurance that’s needed in today’s age of escalating threats.

Besides cyber insurance, companies need to invest in other preventive measures (Photo by Mikhail Nilov on Pexels)