Bangladesh

1. Life Insurance Companies are Facing Massive Liquidity Crisis:
Life Insurance Companies in Bangladesh are facing massive liquidity crisis. Most of
the 2nd generation company fails to settle claims in time due to shortage of reserve. As
a result insurance market becomes looser day by day. Insurance Act was modified andInsurance Development Regulatory Authority (IDRA) was established in 2010.
Solvency Margin criteria did not adopted yet in Bangladesh Life insurance industry.
2. Insurance Penetration Rate in Bangladesh shows decreasing Trend in GDP:
The insurance penetration rate to the GDP in Bangladesh is 0.55% in 2017 as reportedby the Insurance Development and Regulatory Authority (IDRA). Insurance
Penetration Rate never achieved 1% to the GDP history ever after getting
independence in 1971. The highest rate was achieved 0.96% in 2010 and since after it
seems continuous decreasing trend.
3. Premium Collection Rate in Bangladesh decreased 17%:
As per the report of IDRA Bangladesh on 11 December 2018, the gross premium
collection rate decreased about 17% compared to 1st, 2nd, 3rd quarter of 2017. Thegross premium income was BDT 11,150 crore (USD 1,327.4 million) in the samequarter of 2017 whereas the figure was BDT 9,179.42 crore (USD 1,092.8 million) in2018 which was 82.33%.

Compiled by M. Ahsanul Haq, an International volunteer from the Actuarial andInsurance Profession in Bangladesh. He is a member of the scientific committee ofMortality Working Group (MWG) of the International Actuarial Association (IAA),
Bangladesh Liaison official of the International Social Security Association (ISSA). He
involved in research, performs as a Faculty of Actuarial-Insurance Education andTraining. He is the founding member as well as the Treasurer of the Actuarial Society ofBangladesh (ASB).
E-mail: ahsan21aug@gmail.com
Actuarial Society of Bangladesh

China

1. The China Banking and Insurance Regulatory Commission was established.
On March 13th, 2018, the 13th National People's Congress approved theestablishment of the China Banking and Insurance Regulatory Commission (CBIRC),
in replacement of the former China Banking Regulatory Commission and the China
Insurance Regulatory Commission. The merged CBIRC cleaned up and rectified thechaotic phenomenon in the insurance industry like invalid product design, sales
misleading and vicious competition, standardized market order and optimized theindustry

environment,

thus

preventing

potentialrisks

andpromoting

thecomprehensive transformation and upgrading of the insurance industry.
2. Individual tax-deferred commercial pension insurance was piloted on May 1st, 2018.
On May 1st, 2018, a pilot tax-deferred commercial pension insurance project has beenlaunched in Shanghai, Fujian province (including Xiamen) and Suzhou Industrial
Park respectively with a tentative period of one year. During the pilot period, theexpenditure on the purchase of individual commercial pension insurance products thatmeet the requirements shall be deducted before tax within a certain standard; theinvestment income included in the individual commercial pension account shall not be
levied individual income tax; individuals shall be levied individual income tax when
receiving their commercial pension. The tax-deferred pension policy is beneficial bothfor the insurance industry and the consumers.
3. The insurance industry is further opening up to the world.
In order to follow and implement the spirit of the Party Central Committee and theState Council on further expanding the opening-up to the outside world, in 2018,
CBIRC approved 10 market access applications, such as authorizing ICBC-AXA Life
Insurance Co., Ltd. to establish ICBC-AXA Asset Management Co., Ltd., and Korean
Reinsurance Company to establish branch offices; on November 25th, the Allianz
Group of Germany was authorized to establish Allianz (China) Insurance Holding Co.,
Ltd., the first foreign-invested insurance holding company in China.
Insurance Association of China

Korea□ One-year delay to the effective date of IFRS 17 and K-ICS
As the International Accounting Standards Board (IASB) has decided to put off theeffective date of the new international accounting standard (IFRS 17) by a year from2021 to 2022 in November, Korean insurers now have an additional time to prepare forthe introduction.
The Financial Services Commission (FSC) has also put off the enforcement of the newstatutory accounting principles (K-ICS) for a year to 2022 in line with IASB delaying
IFRS 17. As a result, Korean insurers struggling with capitalization are now given
more time.
However, we do not expect to see any relaxation of any of the projects. All insurance
players in Korea need to establish an accounting system to apply IFRS 17, while thefinancial authorities will continue on prescribing and sophisticating the statutory
accounting principles.
□ Financial Authorities Tighten Regulation concerning General Agency (GA)In 2018, the financial authorities reined in the regulations regarding GA in earnest as
GA increases in size. Such move aimed to improve the market order since insurance
solicitors’ changing their employment to GA results in poor policy management, andtheir focus on selling insurance products that provide a large amount of salescommissions leads to mis-selling, hence arousing consumer complaints.
The financial authorities will newly develop regulations on indemnity against large
GAs with over 500 insurance solicitors and implement a set of regulations such as
imposing a cap on commissions and incentives. It is expected that such regulations
will bring positive impact on the industry and will somehow improve shady practices.
In addition, the financial authorities are also pushing ahead with revising thesupervisory regulations of the Insurance Business Act with tightening rules regarding
commissions and incentives at its main contents. This is a part of efforts by thefinancial authorities to protect consumers as the large gap in commissions between
captive and independent solicitors and the differences in commission system by GA are
the basis of a high turnover, leading to the poor management of insurance policies andmis-selling, which ultimately damage consumers.

□’Health Improvement’ Insurance Plans on the Rise
In 2018, the Korean insurance market saw ‘health improvement’ insurance policies
being launched in a stream, which benefit both insurers and the insureds. Such type ofpolices were at a standstill due to the regulation that prohibits offering monetary
benefits over KRW30,000 to a policyholder.
In last December, the insurance industry and the financial authorities developed
guidelines for the development and sales of ‘Health Improvement Insurance Plans’
that provide monetary incentives for efforts taken by the insureds to improve their
heath in order to promote the development of a various type of innovative insurance
plans in line with the fourth industrial revolution. Against this backdrop, insurers
began selling those policies from the first half of this year.
Many life insurers offer health improvement insurance policies, attracting consumers.
Insurers not only measure subscribers’ exercise habits such as walking and running,
also check dietary habits, blood sugar and physical fitness by tapping into wearable
devices. It is expected that such insurance plans will take the lead in the market in theyear ahead.

Korea Life Insurance Association

Taiwan

1. Third round of mutual evaluations done by Asia/Pacific Group on Money Laundering(APG)
On-site review for the third round of mutual evaluations led by Asia/Pacific Group onMoney Laundering was conducted from November 5 to 16 in 2018. The evaluationteam showed the positive reviews on the clear progress Taiwan made over the past twoyears such that the cooperative framework is well laid out among relevant ministries
and agencies and the newly established Anti-Money Laundering Office (AMLO) fulfills
its role as a coordinator in this area, and that the financial information center and thecounter measures against money laundering and terrorism financing are both
effectively functioning. APG cited, however, that the penalties imposed for violationsof financial institutions are too light and that there is the possibility that the low
conviction rates of money laundering cases contribute to the effectiveness ofcommitting such crimes. APG also pointed out that the tighter risk monitoring systemfor overseas accounts of OBU or OSU should be placed, and so should the system
which improves transparency of organizations and takes control of actual
beneficiaries.

2. Corporate Governance Roadmap (2018~2020) issued by Financial Supervisory
Commission
Financial Supervisory Commission (FSC) officially launched the Corporate
Governance Roadmap (2018-2020) in April 2018 for the next three years with the goalof making corporate governance deep-rooted, creating a friendly investment
environment, and making Taiwan an internationally competitive financial market.
There are five action plans being proposed in the roadmap: deepening corporate
governance culture, enhancing board functions, strengthening informationtransparency, encouraging participation of external shareholders, and augmenting
regulatory enforcement. A full commitment from both corporates and investors isexpected.

3. International Financial Reporting Standard No. 9 (IFRS 9) Financial Instrumentsfully adopted on January 1, 2018
IFRS9 Financial Instruments should apply to general industries as well, not tomention financial holding companies, banks, insurance companies and securities
companies.

The Life Insurance Association of the Republic of China

Uzbekistan

1. Regional seminar on “Risk Management” organized by the Ministry of Finance of theRepublic of Uzbekistan jointly with The Foundation for the Advancement of Life &Insurance around the world (FALIA) was held in Tashkent
On October 5, 2018 the Ministry of Finance of the Republic of Uzbekistan jointly withthe FALIA (Japan) held the seminar on the theme “Risk Management”. Risk
management is one of the most relevant areas for the comprehensive and accelerated
development of the insurance sector in Uzbekistan. Consistent use of the structuralelements of risk management by insurers has been the subject of special attention
during the seminar.
In this workshop representatives of Japanese insurance market shared theirexperience in life insurance sphere. The workshop was attended by Executive directorof FALIA Mr. Toru Nagashima, General manager of FALIA Mr. Tomoki Sugizaki,General manager of Dai-ichi Life Insurance Company Mr. Kazihiko Ibuki,
representatives of the insurance market and journalists of the leading mass media ofthe Republic of Uzbekistan.
The event was held in the form of separate presentations and interactive dialogue. The
general manager of Dai-ichi Life Insurance Company presented answers to thequestions of the insurance industry. Problems requiring separate study were recorded
for further resolution based on the results of detailed consideration.
2. «KAFOLAT HAYOT» and «EUROASIA - LIFE» received the license to carry out
voluntary insurance in the life insurance industry of the Republic of Uzbekistan
In 2018, two new life insurance companies “KAFOLAT HAYOT” and “EUROASIA –LIFE” started their activities in the insurance market of Uzbekistan.
In accordance with the order of the Ministry of Finance of the Republic of Uzbekistan
dated November 9, 2018, No. 8-SF, the insurance limited liability company“KAFOLAT HAYOT” issued the license series SF No. 00237 dated November 22, 2018
in order to implement voluntary insurance in the life insurance industry in classes I,II, III, IV and in the general insurance industry in classes 1 and 2.
Also, in accordance with the order of the Ministry of Finance of the Republic ofUzbekistan dated October 29, 2018, No. 6-SF, the limited liability company“EUROASIA-LIFE” issued a license series No. 00235 dated November 5, 2018 for theimplementation of voluntary insurance in the life insurance industry in classes I, II,III, IV and in the general insurance industry in classes 1 and 2.
In order to fulfill mission and achieve their goals, insurance companies of Uzbekistan
are guided by the number of operating principles, such as:• openness, responsibility and honesty;• focusing on long-term and mutually beneficial relationships with customers;• adherence to business ethics.

3. Life Insurance Growth in the Republic of Uzbekistan
Currently, in the Republic of Uzbekistan six insurance companies -O’zbekinvest Hayot,
Alfa Life, New Life Insurance, Agros Hayot, KAFOLAT HAYOT and EUROASIA –LIFE operate in the life insurance market.
The collection of insurance premiums by insurers specializing in the life insurance
industry in 2017 amounted to 138.6 billion sums. The increase of premium collection
by 2018 was 134.6%. The growth of the insurance premium over the past three years
was about 544.6%. For the first half of 2018, growth was recorded at 134% comparedto the same period in 2017, which is a good foundation for significant growth for thewhole year.
At the end of 2017, the volume of investments of insurers specializing in the life
insurance industry amounted to 148.8 billion sums. In 2018 the growth amounted to131.8%, which was secured mainly through long-term life insurance contracts,
including annuity insurance, as well as an increase in the authorized capital ofinsurers. The share of money resources invested in the investment environment byinsurers specializing in the life insurance industry in the total market volume was10%. Today, there are more than 20 types of life insurance products, such as savings,
annuity insurance and long-term life insurance. Also, noteworthy is the appearance on
the market of new life insurance products, which include periodic payments.
State Insurance Supervisory Board
Ministry of Finance of the Republic of Uzbekistan

Vietnam

1. Vietnam life insurance market continues its remarkable growth rate.
Vietnam life insurance market continues its remarkable growth rate in 2018 ataround 32.8% (in total collected premium). Regarding new business premium, Daiichi
Life Vietnam comes has exceeded its rivals to reach No 2 in the market (only afterBaoViet Life). As well as the growth in collected premium, many life insurancecompanies applied to increased chartered capital to assure liquidity, which isforecasted to increase 136% in comparison with 2017.
2. Legal framework in insurance improved.
The legal framework in insurance has been improved with newly issued legal
documents, including:- Government’s Decree No 48/2018/ND-CP supplementing Decree No 98/2013/ND-CP
relating to sanction on administration violation in insurance business: This Decree
regulates more clearly some administration violations in doing insurance business,increases the pecuniary penalties.
- Government’s Decree 151/2018/ND-CP regulating the conditions for investment
and doing business in financial sector : Regarding insurance business, this Decree
terminates 19 conditions, simplifies 7 conditions. Regarding life insurance, thisDecree terminates some requirements for insurance agents selling investment
products.
- Government’s Decree 165/2018/ND-CP regulating electronic transaction in
financial sector (including insurance business).
- MOF’s Circular No 125/2018/TT-BTC regulating the issue of certificate for
insurance agents.
These new legal documents make clear issues which insurers were facing or create
more favorable conditions for the insurance market development.

3. Judgements relating to life insurance are declared to be judicial precedents.
It is the first time 2 judgments relating to life insurance are declared to be judicial
precedents (law cases) by the Judges Council of the Supreme Court. This helps thejudges in local level courts in unanimously considering and judging similar cases.
Association of Vietnamese Insurers

Japan1. Revision of the standard mortality table.
The standard mortality table, a basis for life insurance premium rates, was revised forthe first time in 11 years. With the longevity of Japanese people, many life insurancecompanies lowered risk premiums. As for medical insurance premiums, on the otherhand, some life insurance companies decided to leave them unchanged contrary to all
expectations that the increase is most likely due to the rise in the risk of developing
diseases.
2. Release of the health-promotion type medical insurance by Japanese major life
insurance companies.
One of Japan’s leading life insurance companies started selling a rider whereby thebase policy and most of the attached riders’ premiums are discounted according to
reward points clients earn by taking various medical checkups and screenings orengaging in health promoting activities such as running or walking. By adding therider, clients will get a 15 percent discount on premiums upon signing the policy, andwill receive up to a 30 percent discount based on the points they are rewarded.
Other life insurance companies are expected to follow suit to launch this type ofinsurance products since the increase in health awareness will result in the decreasein the risk of developing diseases.
3. Successive introduction of dementia related insurance products.
A new product type of “Dementia Insurance” was introduced to the market. “DementiaInsurance” is the insurance to reduce the financial burden when clients becomedemented. New products emphasize on prevention and early detection.
Although the main feature of the product is a lump-sum payment upon diagnosis ofdementia, one life insurance company added another feature to the product. If clients
can spend time without becoming demented, they will receive “Prevention Benefit” inevery two years starting a year after the policy issuance.
Another life insurance company introduced a product covering mild cognitive
impairment (MCI), which is a preliminary stage of dementia. By including MCI in ascope of insurance protection, clients will be urged and encouraged early consultation
with specialists, rather than ignoring symptoms, and hence early detection.
Oriental Life Insurance Cultural Development Center