Cambodia

The Inauguration of the First-ever Life Insurance Company and Its Competitor in Cambodia:
On May 21st 2012, the Kingdom launched its first-ever Life Insurance company, Cambodia Life
Insurance Company Plc., which is a result of the joint venture between the Royal Government of Cambodia
represented by the Ministry of Economy and Finance and four private companies respectively PT AsuransiCentral Asia of Indonesia, Asia Insurance of Hong Kong, Bangkok Life of Thailand and Bangkok Insuranceof Thailand. The inauguration was presided over by H.E. AUN PONMONIROTH and marked anotherhistorical event in Cambodian Financial Industry, in addition to the launch of Securities Market in 2011.
The launch as well symbolized the commitment of the Royal Government to Economy Restructuring
through the effort of the transformation of Financial Market into Regional Standard. Following the launchof Cambodian Life, 2 months after, Manulife who is a Canada-owned life insurance company, kicked start
their operation with 1 initial product offer. Then later in late 2012, Prudential, a UK life insurance company,
also got their operating license whose inauguration ceremony will be held in early 2013.
Public Seminar on Life Insurance:
Initiated by the Ministry of Economy and Finance, the two players in Cambodian Life Insurance market,
Cambodian Life and Manulife, launched a joint seminar on August 2nd 2012 to create and increase publicawareness and understanding of Life Insurance and how it benefits them. The seminar was presided over by
H.E. AUN PONMONIROTH and was attended by hundreds of executives representing public and privatecompanies, organizations, institutions to whom the subject matter interests. It aimed to introduce andinform, in general, key persons of the companies about Life Insurance so that the news could be easily
spread within their peers, colleagues and friends
HR Symposium on How Life Insurance Benefits Companies and Organization:
Due to the launch of Group Term Life Insurance product by Cambodian Life, the company in cooperation
with Cambodian Association of Federal Employers and Business Association (CAMFEBA), conducted aseminar on September 21st 2012. The seminar was joined by over a hundred HR personnel/executives fromcompanies, organizations and institution operating in Cambodia. It started by discussing in general what
Life Insurance is, how it benefits each and every individual to the benefit of organization. The discussion
then closed with an introduction to the newest Life Insurance product in Cambodia which is available onlywith Cambodian Life. Obviously, the seminar captured massive attention as it went through major media
and was heard throughout the Kingdom.
Cambodia Life Insurance Company Plc.

Indonesia

Insurance Investment Yield Increases 217%
AAJI reported, the investment yield of Indonesia life insurance industry by the third quarter of 2012reached Rp 13.3 trillion. This value is increased 217% compared to the same period that was Rp 4.2
trillion.
The surge was driven by investment funds under management that increased as well. In the third quarter of
2012, managed funds of life insurance industry reached Rp 219.7 trillion, increased 21.6% from Rp 180.6
trillion in the third quarter of 2012.

The 25th AAJI Top Agent Awards
AAJI held The 25th Top Agent Awards on 4- 5 October 2012, in Nusa Dua, Bali. Awards were given fordifferent categories of assessment for agency and bancassurance distribution channels.
As of December 2012, the number of licensed agents reached 327,234 agents. One of AAJI’s missions isto reach 500,000 licensed agents in 2014 and optimist to be accomplished in the first quarter of 2014.

2012 Insurance Day
The insurance industry in Indonesia coordinated by Indonesia Insurance Council held Insurance Day 2012
to promote insurance awareness level to public. Insurance Day 2012 celebrated with various activities, suchas blood donation, insurance talk show in television, fun walk, fun bike, and entertainment.
Key factors that could increase public awareness to have insurance are education and socialization.
Finance Minister Agus Martowardojo said that every family in Indonesia must understand that insurance
can help planning their finances better and independent for a better future.

Life Insurance Awareness Campaign on TV
Since January 2012, the association has an insurance program in television campaign called "SEJATI". It’s
a 30-minutes talk show presenting weighty conversations with practitioners, agents, customers of life
insurance, and also presents public figures.
The program will be continuing until March 2013 and had been received a good acceptance from audience
all over Indonesia.

Indonesia Life Insurance Association

KoreaProposed Revision of Tax Act: Reducing/Eliminating Tax Benefits for Long-Term Savings Insurance
Korean Government announced a Proposed Revision of Tax Act on August 8, 2012. The Proposal aims forcreating jobs, revitalizing the domestic market, and securing the living of ordinary citizens, and includes the
support for preparing the homo-hundred era such as expanding tax benefits for annuity income. However,tax benefits for long-term savings insurance was reduced or eliminated. Until now, tax exemption wasapplied to the margin of savings insurance of which policy period is more than 10 years. According to the
proposal, even if the policy period is over 10 years, if withdrawal is made within the 10 years, the policy istaxable. This is against the policy stance of inducing retirement planning by private annuity. As retirement
plan savings products such as immediate annuity become taxable, its function as a means of retirement planfor baby boomers will significantly decline. Also, considering that the percentage of subscribers whose
insurance amount is below KRW 300 million reaches 80 percent, it is industry’s opinion that in order tostop tax evasion by the rich, imposing tax only on policies over a certain amount is proper. If the proposed
revision of the tax act passes the plenary session of the National Assembly, it will be reflected in the
Enforcement Decree in early 2013 and applied next year. However, controversy will continue until the
proposal is confirmed.
The Total Assets of Korean Life Insurance Industry Exceeds KRW 500 Trillion
From the gathered results of 24 life insurers in Korea, Korean life insurance industry recorded KRW 502
trillion(USD 490 billion) in total assets in April 2012. After the total assets of Korean life insurance
industry reached KRW 100 trillion in November 1999, it exceeded KRW 500 trillion in only 12 years and 5
months. After reaching KRW 400 trillion in November 2010, with the steady inflow of insurance premium
and with the launching of Nong Hyup Life, the total assets reached KRW 500 trillion which increased morethan KRW 100 trillion in only one year and 5 months. Korean life insurance has positioned itself as thesecond largest financial industry next to the banking in Korea.
The Launching of Nong Hyup Life Insurance and Nong Hyup Property and Casualty Insurance
As the Revised Agricultural Cooperative Act took effect on March 2, 2012, the insurance sector of the past
National Agricultural Cooperative was split and launched into Nong Hyup Life Insurance and Nong Hyup
Property and Casualty Insurance. Nong Hyup whose insurance products were sold mainly though thewindows of Nong Hyup Bank is granted a five-year exemption from the “Bancassurance Rule” which limits
the percentage of insurance sold by a bank that may be underwritten by a single insurer to 25%. Meanwhile,
Nong Hyup Life Insurance was ranked 4th domestically in terms of total assets and premium income(as of
September 2012), and Nong Hyup Property and Casualty Insurance was ranked 9th in terms of direct
premium(as of August 2012).

Korea Life Insurance Association

Malaysia

Increasing the penetration rate of life insurance business
There is a continuous effort to increase the rate of insurance penetration in Malaysia. With a population ofover 28 million, the insured population is only at a level of 44 % for conventional policies (or 56% if
combined with conventional and family takaful policies).
Under the 2010 Economic Transformation Programme of Malaysia (ETP), the Government has set a targetof 75% of population insured by 2020. To achieve this target, the Government has mapped out various
initiatives to enhance the role of insurance in economic development. For instance, the Government has set
up various Labs to undertake projects on healthcare reform and long-term care due to rising medical costs
and higher life expectancy.
In 2012, the Government introduced the Private Retirement Scheme (PRS). This comes in very timely as
Malaysia has to prepare itself towards an aging population in 2030 whereby 15% of its population would beage 60 and above.
As an incentive to encourage the public to participate in these funds, individuals are given a yearly tax
relief of up to RM3, 000 or USD1, 000. The PRS funds are also granted a tax exempt status.
Products approved under the PRS are asset management funds distributed by unit-trust companies anddeferred annuity products sold by life insurers.
Managing of talents in the insurance industry
The insurance industry is facing a shortage of talents and this problem is further compounded by the stiffcompetition from banks and takaful operators, as well as overseas organizations, particularly for qualified
actuaries.
To develop the competency of the staff force in the insurance industry, a Capacity Building Fund had been
established, which is a joint venture of the insurance industry and regulator, Bank Negara Malaysia (BNM).
To date, a fund of RM15 million contributed by the insurance industry and Bank Negara Malaysia has been
set up to achieve the following:• Improve the quality of the human capital of the industry• Raise the confidence level in the market• Promote healthy competition amongst companies• Promote highly developed and knowledgeable practitioners• Meet expectations of consumers as the programme is aligned to the real needs of the industry
Efforts are underway to transform the Malaysian Insurance Institute to be a world class professional bodyto support the training and human capital development needs of the insurance industry.
Another way to address shortage of qualified personnel is by the training of fresh graduates. Under the
stewardship of BNM, the banking and insurance industry are currently participating in the

Financial

Sector Talent Enrichment Programme (FSTEP) which is aimed at attracting high calibre fresh graduates tojoin the financial services sector.

Consumer Protection
To provide even further confidence to the market and stronger consumer protection, the industry and
BNM also established the Treat Customers Fairly (TCF) framework which was introduced in January 2012.
The TCF framework is aimed at avoiding mis-selling and ensuring fair terms and conditions are given to
consumers.
In the TCF, adequate and effective measures for resolving and monitoring customer complaints are
established through welcome calls, product disclosure sheet and the Customer Fact-Find process.
The Life Insurance Association of Malaysia (LIAM) has also put in place a monitoring framework which
requires Chief Executive Officers of insurance companies tosign a declaration of compliance annuallythat they have observed the industry guidelines

Life Insurance Association of Malaysia

Philippines

Issuance of Department Order No. 15-2012 increasing the capital of insurance companies to
Php 1 billion.
The Secretary of the Department of Finance issued Department Order No. 15-2012 on June 01, 2012providing an increase of the minimum paid-up capital of insurance company from Php 400 million ($ 9.30
million) by December 31, 2014 to Php 1 billion ($23.26 million ) by December 31, 2020. The Order isbeing challenged by some insurance companies in the Philippine Court so that the increase will not be
implemented.

Amendments to the Insurance Code of the Philippines
The Congress of the Philippines is urged to fast track the approval into law of bill amending the Insurance
Code of the Philippines. The Bill was approved in third reading by the House of Representatives and insecond reading by the Senate of the Philippines. The amendments will have a bearing on financial andaccounting reporting, investments and investment opportunities, products, minimum paid-up capital, marginof solvency, risk-based capital, regulations and the type of regulatory powers of the Insurance Commission.

Microinsurance stepped up to combat poverty
The poorest of the poor comprising about 26 percent of the Philippine population struggling to make ends
meet can provide a niche market for micro-insurance. Affordable premium or contribution range from apeso to a maximum of P20 a day guarantees policy holders with insurance benefits of up to P200,000. The
micro-insurance program in the Philippines is multi-awarded— the best among Asian countries— andstands second only to Peru, worldwide. With the sound economic climate in the country as growth rate
stands at 7.1 percent in third quarter of 2012, microinsurance is a viable program to both service provider
and potential clients. Microinsurance program intends to help the poor rise from poverty. Aside fromfinancial risk protection—from natural or personal disaster or hazard, the program with micro-financing
will support low-income earners sustain their livelihood. The growth of microinsurance is supported by
Insurance Commission, Asian Development Bank, Japan Fund for Poverty reduction and German
International Cooperation.

Philippine Life Insurance Association

Taiwan

The auction of Kuo Hua LifeKuo Hua Life Insurance set up in the 1960s, during which the government opened up license for private
insurance companies in Taiwan. Its financial condition deteriorated remarkably in recent years due to poor
management resulting in the capital adequacy ratio below the legal standard, and Kuo Hua Life had failed
repeatedly the requested replenishment deadline by the competent authority. On August 4 of 2009, thecompetent authority went in accordance with the law to take over of Kuo Hua Life, and assigned theInsurance Stabilization Fund as receiver. On November 27 of 2012, a public tender from the AEGON Lifesettled down, with a NT $ 88.368 billion payout from the Insurance Stabilization Fund. This is the first caseof the life insurance industry suffering poor management, through auction and Insurance Stabilization FundPayment procedures in Taiwan; such models a new pattern for dealing with financially distressed insurers in
Taiwan in the future.

The promulgation of the Foreign Exchange Valuation Reserve mechanism of Life Insurance
Enterprises
To reduce the burden of the hedging cost of life insurance companies in overseas investment, thecompetent authority FSC refers to the practices of Japan and other countries to set the Foreign Exchange
Valuation Reserve mechanism of Life Insurance Enterprises for life insurers to be taken into force since
March 1 of 2012. With the implementation of the system, FSC requires the life insurance industry should
reclassify the spared hedging cost to special reserve so as to strengthen the financial and operating structureof the industry, and to achieve effective management of exchange rate risk as well as to reduce hedging
costs.

The promulgation and enforcement of the"2011 Taiwan Standard Ordinary Experience Mortality
Table " and the " Second Taiwan Life Industry Annuity Table "The FSC issued regulations on January 10 and March 14 of 2012 respectively, requiring the life insurance
industry to accrue liability reserve should be based on "2011 Taiwan Standard Ordinary Experience
Mortality table " and " Second Taiwan Life Industry Annuity Table " for new policies written since July 1 of2012, in such, the industry tables which Taiwan life insurers follow in product design will draw closer to theactual experience.

The Life Insurance Association of the Republic of China

Uzbekistan

The authorized capital of "O'zbekinvest Hayot" brought to the equivalent of EUR 3 million
The government of Uzbekistan taking various measures to develop the national insurance market on aregular basis and in particular, the long-term life insurance sector, acting as an additional mechanism ofsocial protection, as well as to provide alternative ways to create cash funds.
In this regard, the life insurance company O'zbekinvest Hayot’s active work aimed at promoting long-term
products and insurance savings, the basis of which is strict requirements on the part of government toensure the financial stability and the ability of insurers to respond in a timely manner of obligations. In
response to these requirements and on the basis of the minutes of general meeting of the founders of theNovember 26, 2012 the authorized capital of O'zbekinvest Hayot was increased to the equivalent of EUR 3
million.
To date, O'zbekinvest Hayot, stable leading position in the market of life insurance, provides insurance
services to the life and health of citizens, offering its customers more than 20 different products, which
combine the best set of options in the insurance programs and affordability as to legal entities andindividuals.

Ministry of Finance Republic of Uzbekistan

Viet Nam

TOP 03 EVENTS OF VIETNAM LIFE INSURANCE MARKET IN 2012
In 2012, it is estimated that Vietnam life insurance market gained total collected premium of VND 17.790
billion (USD 847 million), increased 11% against last year, in which new insurance reached VND 5.403
billion (USD 257 million). In comparison with other industries, life insurance industry was among the top
players in the economy. Listed below are 03 top events of Vietnam life insurance market in 2012.

1.

The Ministry of Finance issues 03 new documents relating to life insurance business, including
Circular No 124/2012/TT-BTC detailing a number of articles of Decree No 45/2007/NĐ-CP and
Decree No 123/2011/NĐ-CP; Circular No 125/2012/TT-BTC guiding on the financial activities of
insurance enterprise, reinsurance enterprise, insurance broker and branch of foreign non-life insurance
enterprise; Circular No 135/2012/TT-BTC guiding on the implementation of unit-link product. Those
documents are composed in accordance with the revised Law on insurance business which was issuedin July 2011 as well as the international standards on life insurance.

2.

The government applies new taxation incentitive, which allows the expense of life insurance premium
for employee paid by the employer to be deductible expense in income tax. Such policy of thegovernment is an advantage for the life insurance market as it encourages insurance enterprises todevelop group life insurance products.

3.

Petrovietnam Insurance Joint Stock Corporation cooperates with Sun Life Financial (Canada) toestablish a new life insurance company (PVI Sun Life) which will start its business in the near future as
the 15th life insurance company in the market. The present of the new life isurance company promotes
the competition among insurers as well as the development of the market.

Association of Vietnamese Insurers

Japan1. New growing sector? A wave of new release of nursing-care insurance products.
The nursing products each life insurance company has been releasing are mainly linked to the public
nursing-care insurance system.
For example, if the insured person is issued Certification of Needed Long-Term Care with the nursing
care level of three or up, lump-sum payment will be made.
Additional services are available to policy holders; such services include consulting service and local
care house information service.

2. Tax Reform --- Enforcement of nursing-care insurance premium deduction
An additional income deduction has been granted for premiums paid for Nursing-Care Insurance.
Nursing-Care Premium Deduction went into effect in addition to existing deductible items: Life
Insurance Premium and Annuity Insurance Premium.

3. FSA will lower the standard prospective yield from 1.5% to 1.0%.
The standard prospective yield for life insurance, an indicator for life insurance companies to set
assumed interest rates, will be lowered in April 2013 for the first time in 12 years, which may prompt
some life insurance companies to consider raising insurance premiums.

4. Sales restraint of single payment whole life insurance in Bancassurance channel.
The sales of single payment whole life insurance are growing rapidly as it became one of the leading
products for the Bancassurance. Yet due to the avoidance of interest-rate risk, some insurance companies
began to withhold its sales.

5. Insurance shops are still going strong.
Walk-in Insurance shops, which are independent agents, are considered as a new sales channel.
Although there is a string of opening new shops, it is also pointed out that the agents distort consumer
decisions by recommending highly commissioned insurance products.

Oriental Life Insurance Cultural Development Center