Indonesia

1. INDONESIAN LIFE INSURANCE INDUSTRY ROADMAP
Indonesian Life Insurance Industry Association (AAJI) released a Life Insurance
Industry Roadmap on April 20th, 2022. It is the first life insurance industry roadmap
in Indonesia. This roadmap is expected to be a reference for the life insurance industry
in determining its business strategy in the short, medium, and long term. In addition,
AAJI hopes that this roadmap can provide input to regulators in preparing insurance
regulations that align with business developments. In this way, we hope that in thefuture, the life insurance industry can be at par with other financial sectors andcompete at the Regional and global business level.
2. INSURANCE FORUM 2022
AAJI is now a member of the Global Federation of Insurance Associations (GFIA).
Since 2018, GFIA has initiated an annual international forum organized by the local
insurance association, which has been held during G20 presidencies, inviting
international speakers from around the world to discuss the priority issues of G20
relating to insurance. Therefore, AAJI held Insurance Forum on October 17th-18th,
2022, in conjunction with DRiM Seminar 2022. The theme for the Insurance Forum2022 is "Supporting a Strong, Inclusive and Sustainable Recovery", which is alignedwith the theme of the Indonesian G20 Presidency "Recover Together, Recover
Stronger." Many international speakers joined this event, such as Jonathan Dixon
from GFIA, Yuji Yamashita from Japan Financial Services, Yoshi Kawai from Chair ofOECD IPPC and other professional speakers. Through this event, we want to support
human resources quality improvement to take a role in transforming the insurance
industry.
3. The Indonesian House of Representative Has Approved the Law on Financial Sector
Development & Strengthening (PPSK)Indonesian House of Representatives has ratified the law on Financial Sector
Development & Strengthening (PPSK) at the 13th Indonesian Plenary Session for thesecond session of 2022-2023 on December 15th, 2022. The PPSK law is one of theomnibus-shaped laws that establish new provisions and revises several regulations in
the financial sector, such as The Indonesian Central Bank Law, Indonesia Financial
Services Authority, Insurance Law, etcetera. In the insurance section, PPSK Law
regulates:•The implementation of a Policy Holder Guarantee Program (LPPP) through theIndonesian Deposit Insurance Corporation (LPS)•Separation of insurance and pension oversight at the Financial Services
Authority (OJK) so that the insurance and pension industries have theirrespective heads of supervisor•The establishment of a supervisory institution for LPS and the Financial Service••Authority (OJK).
Strengthening insurance education
Regulations of mutual insurance operations

Indonesia Life Insurance Association

Malaysia

1. Financial Sector Blueprint 2022-2026
In January 2022, Bank Negara Malaysia launched the Financial Sector Blueprint
2022-2026, setting the strategy for the development of the financial sector in Malaysia
over the next five years.
In support of the Blueprint, LIAM has outlined a 5-year roadmap and strategies toachieve the desired targets set for the industry. Among the key priorities include
proactive strategies to increase the market penetration of life insurance ownershipin Malaysia especially among the B40 market segment; to address the long-termsustainability and affordability of private medical and health insurance; to enhancethe development of an open data ecosystem to support digital transformation; toenhance the industry’s skills development, professionalism and distribution; to review
climate change impact,risk management and disclosures; to increase producttransparency and disclosure to improve and enhance customer experience; to increase
consumer education through proactive engagement with the Financial Education
Network platform and to enhance public and private partnerships for catastrophic risk(e.g.: COVID-19).
The industry will be engaging proactively with BNM and other key stakeholders toseek further guidance and input as we work towards materializing the desired
outcomes and targets set for 2026.
2. Study on Turnover of Agents
LIAM conducted a study on “Turnover of agents”, as part of the industry’s ongoing
efforts to formulate best practices and focus on key areas to improve the recruitment
and retention of quality and productive agents.
The study was aimed to establish the reasons for agents leaving the profession, therelationship between product knowledge and the retention of agents and to establish
whether demographics, working experience, support at work and training anddevelopment have influence on the agents’ retention.
An online survey was sent to over 30,000 former life insurance agents and had received
over 400 responses. The data received from the online survey was used as a basis for
Focus Group sessions. Among the main factors influencing an agent’s decision to leave
were remuneration, sales leads, support, and leadership.

Based on the survey findings, the industry will review remuneration structure foragents, conduct regular exit interviews, provide structured support namely
comprehensive sales skills, process and soft skills training and perform robust
recruitment process.
LIAM will work closely with stakeholders to review the programmes for thedevelopment and up skilling of agents through new programmes and programmes
which are in demand by the industry.
3. LIAM #NoFOMO Social Wellness Challenge
LIAM embarks on another Youth Engagement Programme called #NoFOMO Social
Wellness Challenge 2022/23. Riding on a tagline, Live Well, No Fear of Missing Out,the programme invites youth to create a short video content using humour, memes,tragedy, or drama based on three elements of wellness namely physical, emotional,and financial.
The campaign aims to inculcate wellness habit among the youth, inspires andnurtures them to be creative and innovative as well as promote the importance offinancial planning and protection.
Targeting tertiary students nationwide, the program is focusing on three key
objectives namely Awareness on the need for insuring life and reduce risk, Bring#NoFOMO (No Fear of Missing Out) into the (Financial Education Gap) lifestyle via
Curriculum partnership with universities/colleges as well as Connect with the youth
via social media platforms and on-ground activities.
The #NoFOMO campaign which offers over RM42,000 worth of prizes, kicked off withthe first roadshow on 1 December 2022 and the campaign will run until 8 May 2023.
The programme encompasses nationwide roadshows at 40 Universities, 12 classroom
workshops, engagement with students’ clubs, campaign microsite at www.nofomo.my,video postings on TikTok and Instagram, social media postings by KOLs and toconclude with a grand finale Youth Festival 2023 in May 2023.

The media launch isscheduled to be held on 8 February 2023 at the Asia Pacific University, Kuala
Lumpur.
Life Insurance Association of Malaysia

Taiwan

1. Launch of online insurance passbook
Currently insurance contracts are mostly provided to policyholders in hardcopy. Those
policies, in particular life policies that are predominantly long-term contracts. may belost or damaged while in the possession of the policyholders. Those paper documents
also take space. In the efforts to offer policyholders convenience brought about by
insurance technology and enable them to continue receiving insurance services withminimum physical contact or even zero contact under the new normal, an insurance
passbook platform has been constructed on the basis of existing “Insurance
Technology Sharing Platform” to provide policyholders ready access to their insurance
information anytime anywhere, thereby unfolding a new chapter on policy on-hand.

Through the Insurance Passbook Platform, consumers can check the status of theirlife insurance policies, whether they are the applicant or the insured without having tokeep their policies at hand.
2. Launch of “Claim Alliance Chain 2.0 / Digital ID Verification for Online Claim
Applications” trial projectIn the efforts to offer contactless financial services in the post-pandemic era and fulfill
the United Nation’s sustainable development goals (SDGs), the Life Insurance
Association (“LIA”) launches the “Claim Alliance Chain 2.0 / Digital ID Verification forOnline Claim Applications” project.
For this service, the LIA has established an Insurance Industry Identity Verification
Center. Through digital identity verification, it will make public access to insurance
claim service more convenient and enable policyholders to use online claim and mobile
claim services in an entirely paperless process. The service also uses the secure andconvenient blockchain technology. Policyholders only need to file a claim with any
insurance company in the alliance chain and consent that the company may send push
notification through the “Insurance Blockchain Alliance Technology Sharing Platform”
to other insurance companies in the alliance that also provide insurance coverage tothe policyholder. As such, policyholders can file claims with all of their insurers at thesame time. In addition, through the “Medical Records for Insurance Claims” service,
insurers can obtain relevant medical records from hospitals for the claim adjustingprocess. It saves the policyholders the inconvenience of filing claims with different
insurers and going to the hospital to apply for medical records for the claims.
3. The Accounting Research and Development Foundation (ARDF) provides reference
guide on “questions on financial assets reclassification by insurance companies due to achange in business model for the management of financial assets amid drasticallychanginginternationaleconomicsituations”

andtheFinancialSupervisory

Commissions (FSC) instructs insurance companies to follow IFRS9 and ARFD reference
guide when undergoing financial assets reclassification
Many central banks opted to increase interest rates to address inflation pressure in2022, and the magnitude of rate hikes has reached a level that should be considered
an extreme scenario defined by the Insurance Capital Standard (ICS). In addition, asour accounting standards have not officially adopted IFRS17, while the financial
reporting by insurers would reflect decline in the prices of bonds held by them on thecapital side, the liabilities on the other hand have not been measured by fair value,
which means the effects of rate hikes cannot be fully reflected in both assets andliabilities. Hence some insurers plan to undergo financial asset reclassification bychanging the business model for the management of financial assets.

On this issue, the ADRF has provided a reference guide on October 7, 2022. The FSC
has also issued a press release on October 11, 2022, which states: “IFRS 9 has set out
principles-based guidelines on asset reclassification. The ADRF has also issued
reference guide on the subject. As to whether a company can undergo asset
reclassification, it should be determined by the company management and its CPA in
consideration of the company’s financial assets management model and factualevidences. The management should be able to show explicitly that changing thebusiness model is reasonable and save the supporting evidences. The relatedprocedures and information disclosure should also follow the relevant provisions of theInsurance Act and the Securities and Exchange Act.” Moreover, to ensure that
insurance companies maintain stable capital positions, the FSC requires companies
that undergo financial assets reclassification to set aside special reserve to prevent
increase in dividend distribution as a result of reclassification.

The Life Insurance Association of the Republic of ChinaVietnam

1. New Law on insurance business
The National Assembly of Vietnam passed the new Insurance Business Law (“NewLaw“) on 16 June 2022 at the meeting of the National Assembly. The New Law has
provided significant changes to the Current Law and will have a major impact on thedevelopment of Vietnam’s insurance market. The New law will come into effect from 1
January 2023, except for certain provisions on risk-based capital and intervention
measures that will take effect from 1 January 2028.
2. Slowdown of Growth rate in life insurance
In 2022, the market has seen the slowdown of the growth rate in life insurance. Thetotal life insurance premium reached about 179,000 billion VND (7.64 billion USD),increased by 14,27% against 2021 (the growth rate of total premium in 2021 was20,98%). The new business premium reached about 52,000 billion VND (2.22 billionUSD), increased by 6,31% against 2021 (the new business premium growth rate of2021 was 16,92%). After 4 - 5 years of strong annual growth rate in life insurance(which was normally 25 – 30% annually), the growth rate in life insurance tends toslow down since 2021.

3. Code of Actuarial Professional Conduct
On 31/10/2022, Insurance Association of Vietnam issued The Code of Actuarial
Professional Conduct (“Code”), aiming to build and promote confidence in the work ofActuaries and in the actuarial profession.
All Actuaries, who provide any Actuarial Services within the jurisdiction of Vietnam,
are required to adhere to the standards of conduct, practice, and qualifications of theactuarial profession, thereby supporting the actuarial profession in fulfilling theresponsibility to its stakeholders.
The Precepts of the Code identify the professional and ethical standards with which anActuary must comply in order to fulfill the Actuary’s responsibility to the public, theirstakeholders and to the actuarial profession.

Association of Vietnamese Insurers

Japan1. Administrative decision against life insurance developed for tax-saving
Financial Services Agency issued business improvement orders to the life insurancecompany that developed products and sales promotion which deviated from theprimary objective of life insurance. FSA has provided guidelines for life insurancecompanies to prevent developing products or promoting plans particularly seek aftertax-savings (tax-deferral) prior to the incident. However, the former management of
the life insurance company in question led the development and promotion of thescheme to save taxes with its name change plan*, changing a policyholder from acompany to an individual.
*Name change plan was developed by taking advantage of the possibility of reducing
tax burden on companies and individuals, usually its executives, by changing a nameof a policyholder from a company to an individual (transferring asset) with particular
products such as low cash value term insurance. It is also a scheme carried out
through the insurance sales with the premise that the policyholder is changed to acompany to an individual during the low cash/surrender value period, which is thebeginning of insurance period, then the policy will be surrendered after this period.
2. Narrowed down the scope of eligibility of COVID-19 related hospitalization benefits.
Life insurance companies has started to limit the scope of the eligibility for COVID-19
related hospitalization benefits to those who have high risks of developing severesymptoms.
Many of COVID-19 infected patients were asked to stay home or stay in thedesignated facilities other than hospitals in order to keep hospitals from getting
overwhelmed with those patients. The special measure was implemented among life
insurance companies from April 2020 such that those patients were eligible forhospitalization benefits even though they were not hospitalized. However, with theCOVID-19 infected cases these days, few people are developing severe symptoms andmany are with light or without any symptoms so that the life insurance industry
decided to review and adjust themselves to the situation.
3. Business results for the first half of FY2022 (April to September)Premiums and other income of 14 major life insurance companies during the first halfof FY 2022 increased by 18% year on year to JPY16,093.7 billion, thanks to the highsales of foreign currency denominated product. That being said, however, the basic
profits, or the profits from core business operations, decreased by 23% year on year toJPY1,374.4 billion.
The decrease in the basic profits is mainly due to the increase in the hospitalization
benefits paid out to COVID-19 patients.

Oriental Life Insurance Cultural Development Center