China

1. Life insurance achieved double-digit growth in premium income.
According to the data released by the regulatory authorities, in 2023, life insurancecompanies achieved a total of 3.54 trillion yuan in original insurance premium income,a year-on-year increase of 10.28%.
2. The life insurance industry has taken active measures to prevent the risk of interest
rate spread loss.
In 2023, against the backdrop of the downward trend in interest rates, the life
insurance industry has taken initiatives to reduce the interest rate of productbookings, with a maximum adjustment of 0.5 percentage points. At the same time, thepolicy of "unity of reporting and acting” has been fully implemented in bancassurance
business, aiming to strengthen the operation efficiency, to promote cost reduction andthe healthy development of the business.
3. The Measures for the Administration of Insurance Sales Practices have been issued
to better protect the legitimate rights and interests of consumers.
In 2023, the regulatory authorities issued the Measures for the Administration ofInsurance Sales Practices to regulate insurance sales practices, to unify the regulatory
requirements for insurance sales practices, and to protect the legitimate rights andinterests of policyholders, insureds and beneficiaries. The measures will come intoforce on March 1, 2024.

Insurance Association of China

Indonesia

1. OJK Launches Roadmap to Reform and Strengthen the Insurance Sector
The Financial Services Authority (OJK) of Indonesia launched the Indonesia
Insurance Industry Development and Strengthening Roadmap 2023-2027 on October23, 2023, with the theme “Restoring Confidence through Industrial Reform”. The
roadmap aims to guide the OJK, the associations, and the insurance industry instrategizing development and strengthening for the next five years.
The roadmap responds to several strategic issues and challenges in the insurance
sector, such as low penetration rate, weak governance, limited innovation, and low
public trust. This roadmap outlines four main pillars: strengthening supervision andregulation, enhancing industry resilience and governance, fostering market
development and innovation, and improving consumer protection and education.
OJK will form a task force with the insurance associations and industry to execute theroadmap and report the progress to the public and stakeholders. This roadmap isaligned with the OJK's Destination Statement 2022-2027 and the Law Number 4 of2023 concerning the Development and Strengthening of the Financial Sector.
2. Indonesian Government to Accelerate Policy Guarantee Agency
Indonesia’s Financial Services Authority (OJK) is mandating Deposit Insurance
Corporation (LPS) to form a Policy Guarantee Agency (LPP) to provide protection forpolicyholders in the event an insurance company has its license revoked or is indefault.
The establishment of the Policy Guarantee Agency (LPP) is still in process by theFinancial Services Authority (OJK). The LPP aims to protect policyholders in case ofsudden closure of insurance companies. OJK emphasizes that consumer protection in
the insurance industry still needs to be improved, considering the high number ofcomplaints from the public.
Currently, OJK is collaborating with the Fiscal Policy Agency to design theinstitutional form of the policy guarantee agency. The establishment of the LPP ismandated by Law Number 4 of 2023 concerning the Development and Strengtheningof the Financial Sector (UU P2SK).
3. OJK Raises Minimum Capital for Insurance and Reinsurance Companies
The Financial Services Authority (OJK) of Indonesia issued POJK 23 Tahun 2023,
which regulates the business licensing and institutionalization of insurancecompanies, sharia insurance companies, reinsurance companies, and sharia
reinsurance companies. The regulation aims to strengthen the capacity of theinsurance industry in Indonesia, as well as to align the existing regulation with thedevelopment of the insurance industry in Indonesia.
The policy regulates the minimum equity or capital of insurance and reinsurancecompanies that will gradually increase. The increase in minimum equity is divided
into two stages.
In the first stage, each insurance company must have a minimum equity of Rp 250
billion, sharia insurance companies Rp 100 billion, reinsurance companies Rp 500
billion, and sharia reinsurance companies Rp 200 billion. This minimum equity mustbe fulfilled by each entity no later than December 31, 2026.
In the second stage, the regulator will classify or group insurance companies based on
their equity. This will be implemented no later than December 31, 2028. The
classification of insurance companies is divided into two groups: the Group of
Insurance Companies Based on Equity (KPPE) 1 and KPPE 2.
For insurance companies classified in KPPE 1, they must have a minimum equity ofRp 500 billion, sharia insurance companies Rp 200 billion, reinsurance companies Rp
1 trillion, and sharia reinsurance companies Rp 400 billion.
Meanwhile, for insurance companies classified in KPPE 2, they must have a minimum
equity of Rp 1 trillion, sharia insurance companies Rp 500 billion, reinsurancecompanies Rp 2 trillion, and sharia reinsurance companies Rp 1 trillion.
In addition, the regulator in the POJK will also form the Business Group of Insurance
Companies (KUPA), where there will be one company that will become the parent
company with adequate equity. The minimum equity that must be fulfilled by theparent company KUPA follows the minimum equity in KPPE 2 mentioned above.

Indonesia Life Insurance AssociationMalaysia

1. Customer Satisfaction Survey Unveils Industry’s Positive Trends in Malaysia
The insurance and takaful industry in collaboration with Bank Negara Malaysia(BNM), have released the findings of the Customer Satisfaction Survey 2022 (CSS2022). Overall, the survey shown encouraging trends in the industry, with a notable
increase in the Customer Satisfaction Index (CSI) score rising from 80 points in 2018
to 85 points in 2022.
The survey, conducted by NielsenIQ Malaysia, aimed to measure customer
experiences, and assess the impact of the pandemic on the quality of customer services
offered by the Insurers and Takaful Operators (ITOs). The CSS 2022 aimed atevaluating customer engagement, service delivery in accordance with the Customer
Service Charter (CSC), trust levels between customers and the industry, and customer
satisfaction with products and services purchased. A total of 10,206 customers
participated in the survey, involving 48 ITOs.
Key findings from the survey include improved customer satisfaction across all sectors,
with a notable increase in the Customer Service Index (CSI) score rising from 80
points in 2018 to 85 points in 2022. 74% of customers expressed a positive sentiment
regarding their insurance and takaful experience. The Net Promoter Score whichmeasures the loyalty of customers to a company show significant improvement
increasing from -4 points in 2018 to +20 points in 2022.
Click here for the report Customer Satisfaction Survey 2022.
2. LIAM Youth Festival Finale wraps up #NoFOMO Social Wellness Challenge#NoFOMO Social Wellness Challenge (#NoFOMO Challenge) wrapped up with theunveiling of the grand prize winner who walked away with RM10,000 cash and abrand-new iPhone 14 Pro and 10 Consolation prize winners of RM2,000 cash each at
the Youth Festival Finale held on 22 June 2023.
As an industry-wide initiative, the #NoFOMO Challenge was aimed to inspire andnurture the young generation to be creative and innovative as well as raise insurance
awareness against unforeseen risks in life. Riding on a tagline, Live Well, No Fear ofMissing Out, LIAM invited youths to participate in the #NoFOMO Challenge by
creating a short video content using humour, memes, tragedy, or drama based on thethree key elements of wellness - physical, emotional, and financial wellness.

The 6-month campaign encompassed nationwide roadshows at 40 universities, 15classroom workshops, engagement with students’ clubs and societies at universities,
informative campaign microsite at www.nofomo.my, short video postings on social
media platforms and social media postings by Key Opinion Leaders /Influencers.
The campaign, which kicked off on 1 December 2022 and ended on 31 May 2023,
received over 2,000 entries and garnered over 30 million reach on various platforms.
Online engagements attracted over 1.2 million people on social media.
3. LIAM and AKPK join forces to empower Malaysian youths with financial expertise
via Jelajah Bijak Wang
LIAM and Agensi Kaunseling dan Pengurusan Kredit (AKPK) in collaboration with
Universiti Putra Malaysia and 16 LIAM member companies launched “Jelajah Bijak
Wang (JBW)”, an initiative designed to empower young individuals with essential
financial skills. The launch marked by the signing of a Memorandum ofUnderstanding (MOU) between LIAM and AKPK, underscoring their unwaveringcommitment to enhancing financial literacy among the youth and all Malaysians.
LIAM believes that continuous financial literacy programmes for the youth are theway forward. JBW focus on empowering Malaysian youth with the knowledge, skills,
and tools to navigate the increasingly complex financial world before they enter thework force and set targets to reach 6,000 higher learning students nationwide.
This initiative is part of the industry’s support in the Financial Sector Blueprint(FSBP) 2022 - 2026 agenda, which aims to elevate the financial wellbeing ofhouseholds and businesses.
Riding on the tagline, “Prosper Today, Thrive Tomorrow,” LIAM hopes the JBW will
have a positive impact on young people in the country, nurturing holistic well-being,
fostering positive financial behaviour, and elevating the financial well-being of all
Malaysians.
The program covers seven dimensions of wellness, offering students an enriching mix
of classroom sessions, gamification, online learning, and culminates in an exciting
Treasure Hunt in 2024. Adding a futuristic touch, students will be guided by Mat
Awang, a robot from the future, imparting the values we wish to see in our youth.
For more information on JBW, click here.
Life Insurance Association of Malaysia

Taiwan

1. The Life Insurance Association partnered with top hospitals including NTU, Taipei
Veterans General Hospital, Chang Gung, Tri-Service General Hospital, and Tzu Chi
Hospital to expand one-stop claim services
The scope of services of "Medical Records for Insurance Claims" was expanded to top
hospitals in Taiwan including NTU, Taipei Veterans General Hospital, Chang Gung,
Tri-Service General Hospital, and Tzu Chi Hospital, which joined in 2023. They now
provide more convenient services so that patients do not have to worry aboutcomplicated insurance claim procedures during their recovery from illnesses.

It fulfills the corporate social responsibility of insurance enterprises and provides
people with financial coverage for medical expenses so that people can make the best
medical decisions. The successful partnership demonstrates the resolve of life
insurance enterprises for continuously building social trust while ensuring
sustainability and profitability. It also provides people with more comprehensive
health and financial coverage.
2. Announcement of local and transitional measures for the New Generation Insurance
Solvency Regime to help businesses adopt international systems in an orderly
fashionTo reasonably address the business risks of insurance enterprises and increaseinternational competitiveness, the competent authority of Taiwan referenced theInsurance Capital Standard (ICS) established by the International Association of
Insurance Supervisors (IAIS) and established the New Generation Insurance Solvency
Regime (TW-ICS) which is expected to be implemented in 2026.
As there are significant differences between the New Generation Insurance Solvency
Regime and the existing risk-based capital (RBC) regime, the competent authority
referenced its implementation in other countries, the current state of the insurance
industry in Taiwan, and potential impact to set local risk factors for stocks, real estate,and public construction projects, and provide a 15-year transition period. The
competent authority also considered the low liquidity of insurance enterprises'
insurance policy liabilities that have high interest rates and allowed an additional
increase of 50 basis points (bps) for calculating the liquidity premium. The net effect of
the recognition of assets and liabilities at fair value was also given a 15-year transition

period, and the provision for interest rate risks was increased linearly from 50% to100% over 15 years.
The competent authority will continue to focus on emerging risks such as the capital
allocation for long-term life insurance and lapse, establish localization andtransitional measures suitable for conditions in Taiwan, and help businesses adopt
international systems.
3. Compulsory Enforcement for Life Insurance Contracts - Supreme Court 2019
Tai-Kang-Da No. 897 Civil Judgment
Can the enforcement court seize the rights of debtors in life insurance contracts,
terminate the insurance contract on their behalf, and order the insurer to pay thesurrender value to pay compensation to creditors? The issue has been disputed foryears and the Supreme Court affirmed that the surrender value of life insurance
policies are liability properties of the proposer and the enforcement court may renderan affirmative opinion for enforcement on behalf of creditors. However, insurancecompanies must still clarify several compliance issues in terms of the format anddetails in the actual implementation of compulsory enforcement for insurance
contracts.

The Life Insurance Association of the Republic of China

Vietnam

1. Life insurance market faced negative growth
In 2023, first time in the history of life insurance in Vietnam, the life insurance
market suffered negative growth. The number of new life insurance contracts
underwritten in 2023 dropped by 44% against 2022, new business premium dropped
by nearly 45% against 2022. These bad results are mostly due to the media crisis inlife insurance that has led to the negative attitude of the public towards life insurance.
The crisis originated from some main stream articles reporting that banks customers
were forced by the bank staff to buy inappropriate insurance products (for example,unit linked investment products) when applying for loans. The crisis was exacerbatedwith a livestream of a celebrity talking about unclear advice from an insurance agent
when she bought insurance, leading her to misunderstanding her life insurance
contract.
2. New stipulations come into effect
After the New Insurance Law had been approved by the National Assembly in June
2022, in 2023 the Government issued Decree No 46 instructing the implementation ofthe Insurance Law and the Ministry of Finance issued Circular No 67 instructing theimplementation of some articles of the Insurance Law and Decree No 46. New legalstipulations aim to tighten insurance business activities, enhance the responsibilities
and obligations of insurance companies, protect the rights of customers.

3. The change in life insurance product structure and the crisis of bancassurance
In 2023, the unit linked investment product – the products which had been the key
driving force for the fast growth of Vietnam life insurance market in recent year – hasbeen dramatically dropped. Unit linked investment products dropped by 65,6% interms of new business contracts and by 70% in terms of new business premium. It isgood that protection products although being badly affected by the media crisis but not
so strongly affected. Regarding the distribution channel, Bancassurance has been
badly affected and it is expected that this channel will still be further affected with the
new legal stipulations (new requirements on the qualifications of the staff sellinginsurance, separate insurance desk/counter, not permitted to sell investment products
clients during 60 days before and after the loan disbursement date…)

Insurance Association of Vietnam

Japan1. Wage hike trend spreading among life insurance companies
Major life insurance companies are raising wages in order to respond to inflation andto provide their employees with a stable working environment. During FY 2023, thewages of both sales and office staff were raised by the average of 5% and this trend
most likely continues in FY 2024. The same goes to starting salaries. The three major
life insurance companies will raise the initial salary for their general workers whowould join the company in FY 2024 by more than 10%, compared to FY 2022.
2. Increase in assumed interest rates for savings type products (Reduction in insurance
premium rates)
The hike in long-term interest rates leads many life insurance companies to increase
assumed interest rates for savings type products.
S life insurance company increased its assumed interest rate for yen-denominatedsingle premium whole life insurance policies issued on and after November 1, 2023 to
1.0% from 0.9%. N life insurance company also decided to increase its assumed
interest rate for the same type of product issued on and after January 1, 2024 to 1.0%
from 0.6%.
On the other hand, M life insurance company started to lower its premium rates foryen-denominated educational endowment insurance, a type of insurance product withthe purpose of securing educational funds for children, and at the same time it also
boosted policyholders’ accessibility to the product by expanding the age limit of themto enroll.
In this phase of increasing interest rates, the competition among life insurancecompanies over assumed interest rates would be getting more intensified.
3. Utilization of Generative AI
Life insurance companies are making efforts to increase operational efficiency byutilizing generative AI technology. Generative AI is used for office work such as
preparing business proposals and related materials or assisting programing. By sodoing, daily-work productivity is expected to increase.
However, it is necessary to establish an environment and rules including security
control of information to use such AI technology safely.

Oriental Life Insurance Cultural Development Center