Bangladesh

1. The Life Insurance Corporation of India (LIC) has been cleared by the regulators to
do business in Bangladesh.
The Indian state-owned insurance giant will start operations as the joint venture
entity LIC Bangladesh Ltd. Its paid up capital will be BDT 1 billion and LIC willhold half of it. The rest will be owned by their Bangladeshi partners, which will beraised from the capital market and local entrepreneurs. In 2013, LIC’s proposal for
operation in Bangladesh with a paid up capital of BDT 300 million was rejected by
the IDRA. On 31 May 2015, IDRA cleared the LIC proposal. The total number of Life
insurance operators in Bangladesh will be 33 including state owned Jiban Bima
Corporation (JBC) and foreign operator Metlife Alico.
2. Bangladesh Life Insurance Policy Statistics 2014 Published
There were 8 million life insurance policyholders in Bangladesh, according to the lastcount in December 2014 by the Insurance Development and Regulatory Authority(IDRA). The total life fund (Reserve) of these policyholders stood at BDT 2500 million(USD 3.5 billion). In Bangladesh the first year lapse rate for private insurers is in therange of 60-70 percent, much higher than in other countries and one of the worst
Laps rate globally, the IDRA said citing data from the companies. The rate is 10-15
percent in India, 40 percent in Sri Lanka and 45 percent in Pakistan. Hong Kong has
a lapse rate of 10-20 percent. The rate is far lower in the developed world. MetLife,
which has been in operation here since 1952, is the market leader with over 1.4
million policyholders. MetLife's average lapse rate is only 0.52 percent.
3. Cell Phone Life Insurance getting popular in BangladeshLife insurance support, which is now being offered by the top three mobile phone
operators to their loyal subscribers for providing them with a handsome monthly
revenue earnings, are being popular in the telecom sector recently. Three leading
operators Grameephone, Banglalink and Robi are currently offering this service,bringing around 7.5 million subscribers under the insurance net out of 110 million
mobile users, according to sources. Robi the third-largest operator in-terms ofsubscribers is the pioneer for introducing this innovative idea in the country’s
telecom sector in July, 2012 and the company has already paid around 273 claims
worth BDT8.6 million. Grameenphone which has around 50 million active

subscribers, the operator has so far successfully settled 51 claims worth BDT 2
million after starting this service from January 2014. Most of the claims were settled
within seven days and in many cases, claims were settled within 24 hours.
Banglalink the second-largest in-terms of subscribers base raising the insurance
coverage up to BDT1 million. Nearly half million subscribers already in coverage ofthis service, claim Bangllink officials.

Compiled by M. Ahsanul Haq, a highly dedicated volunteer for the Actuarial andInsurance Profession in Bangladesh. He is involved in the Research for Analyzing theMortality andLife Insurance

Claims. He also

performs

asa Faculty ofActuarial-Insurance Education and Training. He is the founding member as well as theTreasurer of the Actuarial Society of Bangladesh (ASB).
E-mail: ahsan21aug@gmail.com
Actuarial Society of Bangladesh

Cambodia

1. Life Insurance Market GrowthLife insurance has been introduced to Cambodia for the first time in 2012 and this
sector kept growing remarkably since then. In 2014, life insurance market share has
increased at approximately 300% from the previous year, 2013. The growth of life
insurance business has also increased to about 190% compared to the same period in2014 (statistics from January to November 2015 around USD 17 millions). There aremany factors, which have driven the growth of life insurance business in Cambodia
such as the improvement of distribution channels, life insurance products, newtechnology advancement, and public education on life insurance done by both theregulator and the insurers, regulations as well as the economic growth.
2. New Life Insurer Licensing
Up to 2015, there are 3 life insurance companies operated in Cambodia, one local life
insurer (Cambodia Life Insurance Company Plc.) and two foreign life insurers(Manulife Cambodia Plc. and Prudential Cambodia Life Assurance Plc.). At the endof 2015, the Ministry of Economy and Finance of Cambodia has granted license toanother foreign life insurance company. The life insurance market in Cambodia has
been growing year by year though the level of its growth seems small compared toother neighbor ASEAN member states. The expectation would be that life insurance
market in Cambodia will grow remarkably within the next few years.
3. New Insurance Law and Regulations
The new insurance law has been adopted in August 2014 and took into effect since
February 2015. New Sub-Decree, Prakas and other regulations such as Sub-Decree
on Insurance, Prakas on Capitalization and Solvency Standards, Licensing of agents,
broker, and loss adjusters etc have been preparing and undergoing public
consultation at the end of 2015. Cambodia tries her best to set up the insurance
regulations in order to supervise and to develop the insurance market to be as
potential as other developed countries.
Cambodia Life Insurance Company Plc.

China

1. Rate reforms for universal life policies and dividend-paying life insurance was put
into practice.
On February 3rd and September 25th 2015 respectively, China Insurance Regulatory
Commission (CIRC) issued notifications on rate reforms for universal anddividend-paying life insurance. Those have marked the completion of the "three-step"
strategy of rate reform of China's life insurance products, following the liberalizationof the predetermined interest rate of ordinary life insurance in 2013. This also marks
the full establishment of life insurance rate mechanism. The pricing behavior of life
insurance products will be more market-oriented.
2. Personal Income Tax Benefit Plan of Private Health Insurance was officially issued
and on pilot implementation.
On May 6th 2015, in the executive meeting of the State Council, it is officiallydecided to implement Personal Income Tax Benefit Pilot Plan of Private Health
Insurance. On November 27th, the Ministry of Finance, the State Administration of
Taxation, China Insurance Regulatory Commission (CIRC) jointly issued "Notice on
Pilot Implementation of Personal Income Tax Deduction of Private Health
Insurance", which formulate how the pilot program is to be implemented in chosencities from the scope of the plan, product specifications, tax collection etc. The scheme
will start its official implementation from January 1st, 2016. This marks the official
launch of the tax policy of health insurance. Currently, a number of companies havelaunched relevant insurance products.
3. The full implementation of serious illness insurance of urban and rural residents
On August 2nd 2015, the State Council issued a formal notice on "State Council’s
advice on the full implementation of serious illness insurance of the urban and rural
residents”. This was to accelerate the construction of serious illness insurance
system of urban and rural residents, to build a strong universal basic health care
network, so that more people can benefit from it. Serious illness insurance will help
reduce the burden on the medical costs of illness, which is an important measure to
relieve pressure on public health, and to improve the social security system.
Insurance Association of China

Korea

1. Financial Services Commission announced a road map for the insurance industry
The Financial Services Commission (FSC) drew up and announced “a Road Map to
Boost Competitiveness of the Insurance Industry” on October 1st, 2015. The
insurance industry has been the most regulated industry among financial services
until today. The main purpose of the road map is to create a competitive marketplacethrough deregulation. Under the road map, regulations regarding standard interest
rates and accretion rates that are used when determining premiums and paying
claims will be phased out one by one. The FSC’s plan is to significantly relax
regulations on adjustment and increase limit of risk rates. However, deregulation ofindemnity health covers and auto insurance will be carried out in phases over the
next two years.
2. Online insurance supermarket ‘Insurance Damoa’ was launchedInternetinsurance

supermarket,

named

as

‘Insurance

Damoa(www.e-insmarket.or.kr)’, in which consumers can compare the prices of different
insurance products, officially opened on 30 November, 2015. Insurance Damoa
features the most popular insurance plans in six categories such as car insurance,
travel insurance, pension insurance, savings insurance, term insurance andindemnity health insurance. Users can easily compare prices of different products byentering conditions that they are looking for in each category. A total of 33 insurancecompanies, including 20 life insurers and 13 general insures, are participating in theinsurance supermarket selling 217 different plans (108 plans from the life insurance
and 109 plans from the non-life). More online marketing products are expected to beregistered. The Korea Life Insurance Association and the General Insurance
Association of Korea, who developed the online insurance market in compliance withthe government policy to promote financial technology known as FinTech, said theDamoa portal holds great significance as it enhances efficiency by enablingcustomers to compare the prices and features of different insurance plans at one viewand buy cover online.

3. China’s Anbang Insurance Group acquired Tongyang Life
China’s Anbang Insurance Group completed a deal to take over Tongyang Life on
September 16, 2015. The Chinese insurer, founded in 2004, is currently led by its
chairman & CEO Wu Xaiohui, a grandson-in-law of former Chinese leader Deung
Xiaoping. The company has been aggressively advancing on the M&A trail globally togrow into a comprehensive insurance group with a capital of CNY 700 billion (KRW
122 trillion) in the past decade. Let alone the life and general insurance businesses,
Anbang Insurance has amassed licenses to conduct nearly every kind of financial
service in China. Last year, Tonyang Life recorded KRW 4.25 trillion of sales on aconsolidated basis that resulted in net profits of KRW 164.4 billion, a record-high net
profit since its establishment. The insurer ranked 8th among life insurers in Korea
with premium income of KRW 4 trillion and a total asset of KRW 20.37 trillion. A
source from Tongyang said, “the Anbang’s acquisition of Tongyang Life, which was
the first listed life insurer on the Korea Stock Exchange, is expected to enable thecompany to provide consumers with more diverse and innovative products andservice.
Korea Life Insurance Association

Malaysia

1. Life Insurance and Family Takaful Framework
On 23 November 2015, Bank Negara Malaysia has released the much anticipatedLife Insurance and Family Takaful Framework (LIFE Framework) to support thelong-term sustainable growth and development of the life insurance and family
takaful industry in Malaysia.
The Framework aims to promote innovation and a more competitive market
supported by higher levels of professionalism and transparency in the provision of
insurance and takaful products and services.
Three specific initiatives introduced under this Framework includea) Gradual removal of limits on operational costs to promote product innovation
while preserving policy/certificate value;b) Diversified distribution channels to widen outreach; andc) Strengthened market conduct to enhance consumer protection.
The Framework is expected to spur the innovation of a wider range of both products
and delivery channels to suit diverse consumer needs based on individual risk
appetites, financial goals and levels of financial capability. This in turn willcontribute towards the broader objective of reducing the protection gap in Malaysia
in line with the efforts to increase the penetration rate to 75 percent by year 2020(2014: 55.5%).

2. Introduction of Goods and Services Tax (GST/VAT) in Malaysia
With effect from 1 April 2015, the Malaysian Government has implemented theGoods and Services Tax (GST) at the rate of 6% after the announcement made in the
Budget 2014 by the Prime Minister of Malaysia.
The introduction of GST is part of the overall Government tax reform programme
towards making the taxation system more efficient, effective, transparent, businessfriendly and capable of generating a stable source of revenue.
In the industry, life insurance products such as Whole Life Insurance, Endowment
Insurance, Child Insurance, Term Insurance (including mortgage insurance),
Education Insurance and Annuity products are exempted from GST. Consumers
will not have to pay the 6% GST on their life insurance premiums.
However, the premiums paid for non-life policies are subject to the GST rate of 6%.

3. LIAM Youth Video Awards 2015 - “You Only Live Once”, the largest Inter
University Social Video Production Challenge
In July 2015, LIAM launched the inaugural Youth Video Awards 2015 -“You Only
Live Once”, the largest Inter University Social Video Production Challenge involving
21 local universities in Malaysia.
The Youth Video Awards contest serves to communicate the message of appreciating
life, by inviting the best young Malaysian media producers and talents to produce
social videos with positive but entertaining values for their own generation.
The contest which carries the message that life is precious and a campaign mission,“value life, capture life and share life”, had attracted 541 submissions from budding
future movie producers / directors.
Top 11 videos competed at the Grand Finale held on 21 September 2015, at the GSC
Signature, Mid Valley Kuala Lumpur.

The Really Big Picture Productions from

Universiti Teknologi MARA Puncak Perdana came out Champion with their winningentry, “Dream Jar” and walked away with a trophy, Best University Award, Best
Lecturer Award and RM8,000 cash.
The 1st Runner up went to Caramel Productions of Saito College with their winningentry, “My Gardening Hero. My DAD” and walked away with a trophy and 1st
Runner Up Lecturer Award and RM5,000 cash. Meanwhile the Stephand
Productions of Lim Kok Wing University of Creative Technology came third with “9Lives” and walked away with a trophy and RM2,000 cash. The 8 other consolation
winners received a Trophy and RM500 cash each.
For

more

information

on

LIAM

Youth

Video

Awards,pleasevisit

www.youthvideoawards.com
4. Donate Blood, Save Life
Life Insurance Companies organise a Blood Donation Campaign at 37 strategic
locations
LIAM, via its community service platform, Insurans Hayat Cares together with its
16 member companies joined hands with the National Association of Malaysian Life
Insurance Fieldforce and Advisers (NAMLIFA) and National Blood Bank inorganising a week-long blood donation campaign at 37 strategic locations nationwide
from 3rd to 10th August 2015.
With the objective to increase the blood supply at the National Blood Bank during
the festive season, the campaign had covered five regions namely Central, Northern,Southern, East Coast and East Malaysia.

LIAM member companies, its stakeholders, family members, agents and customers
participated in the campaign and did their part by donating blood at the nearest
blood donation centres set up throughout the campaign.
The launch of the campaign was officiated by the Minister of Women, Family andCommunity Development, Malaysia, Yang Berhormat Dato’ Sri Rohani Abdul Karim.
Yang Berhormat Dato’ Seri Rohani lauded the efforts by the life insurance industry
in fulfilling its corporate social responsibility and helped in raising the awarenessamong the people to donate blood to those who are in need.
The nationwide blood donation campaign is another community project undertakenby the Insurans Hayat Cares’ platform in line with its commitment to be moreengaging with the rakyat from all walks of life.

Life Insurance Association of Malaysia

Taiwan

1. Cathay Life acquired Global Life and Singfor Life
Cathay Life won the bid for the public auction of Global and Singfor Life insurancecompanies with a subsidy from Taiwan Insurance Guarantee Fund of TWD 30.3
billion in March 2015. With the approval of FSC, Cathay Life took over their asset,
liability and business operation as of July 1, 2015.
2. Taiwan Life and CTBC Life to merger
FSC approved the merger case of Taiwan Life and CTBC Life dated on January 1,
2016 based on related provisions of Financial Institutions Merger Act. Rights of bothcompany’s policyholders shall be just as stated in policy conditions and are not going
to be affected by this merger.
3. Amendments to Directions for the Review of Life Insurance Products, adding
provision of payment-in-kind type products
FSC passed Amendments to Directions for the Review of Life Insurance Products(July 13, 2015) by adding provisions of the insurance products provided in-kindpayments. As such, the development of new insurance products, which offer in kind
payment as a form of insurance payments, will become a definite form. In otherwords, life insurers will apply for the approval of their new products complying withthese instructions
There are currently 6 kinds of in-kind payment approved: Health care management,
Medical care, Nursing care, Long-term nursing care, Nursing home, and Funeral.
With this kind of insurance product, a traditional cash payment and these 6 kinds ofbenefits in kind are available for policyholders. In addition, the associatedregulations concerning the protection of consumers and the risk management of
insurers have been already amended to ensure that the new type of insurance
products mentioned above is carried out properly and that the right of consumers tobe protected.
The Life Insurance Association of the Republic of China

Thailand

1. Overview of Life Insurance in Thailand for 2015
The life insurance business in Thailand continued to grow in the year 2015. The total
premium from January 1, 2015-November 30, 2015 is 482,100.24 million baht, with agrowth rate of 6.39%. The total premium is composed of New Business Premium(155,826.45 million baht- 0.60% growth) and Renewal Premium (326,273.79 million
baht- 10.09% growth). For renewal Premiums, there is a stable rate of 83%, which isa considerably good rate showing that people are placing more emphasis on life
insurance. Life insurance companies are also placing an emphasis on the importanceof life insurance and are developing new products to compete with each other inorder to give consumers the best products that will meet their needs. Most
importantly, the growth of life insurance business in Thailand is due to the help andsupport from the Office of Insurance Commission (OIC).

2. Statistics for the Agency License Examination By the end of 2015
In 2015, many people took the Agency License Examination in order to get theirlicense to sell life insurance in Thailand via the companies that they are registeredunder. In December 2015 alone, there were 10,079 people that passed the Agency
License Examination. As for the statistics for the Agency License Examination fromJanuary 1, 2015- December 31, 2015, there were a total of 181,330 people that
registered to take the exam. This is lower than the previous year, where there were
193,061 people (-6.07%). From the 181,330 registered examinees, 128,187 came totake the examination and 49,050 of them passed (38.26%).
The Thai Life Assurance Association

Uzbekistan

1. At present time, the insurance market of Uzbekistan is actively developing. At theend of 2015, gross premium in the life insurance market was 153.8% morecompared to 2014. The indemnity growth was almost proportional to the premium’s
one, and equals to 150.6%.
At the same time, the share of life insurance premiums in the structure is only 5%,
indicating that there is a large potential life insurance industry. The government of
Uzbekistan pays great attention to the development of the life insurance industry.
A striking example of this is to provide unprecedented benefits both insurancecompanies and individuals who use the services of long-term life insurance. In
particular, amount of wages and other personal income, allocated for payment of
insurance premiums for long-term life insurance, are exempted from taxable base.

2. One of the priority trends of the policy of any state is a social protection of its
citizens, including the care of those who for whatever reason is outside of theircountry. The implemented function includes insurance, providing citizens travelingabroad, insurance protection in case of health deterioration and the need for
medical care. Insurance of persons traveling abroad, the O’zbekinvest Hayot Life
Insurance Company has from the first days of its foundation 12 years ago. In 2015,
in the opinion of the participants of the annual international tourism fair, which
included various representatives of the tourism industry the Company for thesecond time awarded the title of Best insurance company for travel. This is not only
a great honour, but also a great responsibility, in connection with which theCompany cooperates with one of the leading assistance companies of theinternational level – AGA International S. A. (Mondial Assistanse Group) having
more than 100 – year experience in the provision of assistance services.
3. Asian Development Bank experts and representatives of Ministry of Finance andinsurance companies performed on this seminar.
The subject of discussion was wide range of questions covering the potential anddevelopment of national market of insurance services, including life insurance,international experience in this field, particularly Brasil, South Africa, India,
Philippines, EU countries and etc.
Special attention was paid to the issues of development of life insurance, ways of
their solution, main features of life insurance programs and sales channels. In
particular, there was noted about accordance to international standards
classification of life insurance and non-life insurance workers, setting specificrequirements to life insurance operations, special provisions for the formation,
distribution and usage of technical life insurance reserves.
Ministry of Finance of Republic of Uzbekistan

Vietnam

1. Vietnam life insurance market maintained stable growth in 2015 and forecasts a
growth rate of 29% to achieve [total premiums of VND 36.600 billion at the end of
2015. This is the highest growth rate of Vietnam life insurance market in 10 recent
years.

2. Insurance Association of Vietnam held the 4th Term of Office Congress (2015-2020) at
which the Association revised its Charter; elected new Executive Committee andControlling Committee; and set the Action Plan for the whole term.

3. It was the first time insurance companies purchased long-term government bonds (20years) of high face value, which proved the role of life insurance as a tool for capital
mobilization.

Association of Vietnamese Insurers

Japan1. Nippon Life reached a deal to acquire Mitsui LifeJapan’s leading life insurance company, Nippon Life Insurance Company, or largely
known as Nissay, reached an agreement to acquire Mitsui Life Insurance Company.
Established in 1914, Mitsui Life is part of Mitsui Group, one of the largest corporategroups in Japan, with a total asset of 7,400 billion yen and premium income of 545
billion yen. Nissay would pay 400 billion yen for this acquisition and Mitsui Life
would be a subsidiary of Nissay in March next year.
While other major life insurance companies including Da-iichi Life, Meiji Yasuda Life,and Sumitomo Life focused on foreign markets and subsequently embarked onlarge-scale acquisitions of life insurers in United States, Nippon Life chose to focus
more on the reinforcement of domestic market where the business environment has
been rapidly changing due to the demographic change and Kampo Life’s going public.
Another reorganization of Japanese life insurers might begin as Nissay’s move might
prompt other companies to follow suit.
2. Bancassurance took a leap forward
Sales of bancassurance stood strong at record-high of over 6 trillion yen in the fiscal
year of 2014. There is a surge of needs toward certain insurance products behind its
success. Such insurance products include foreign currency denominated products,
which yield higher interests than yen-denominated savings deposit under theongoing ultra-low interest rates and single premium whole life products, which areutilized for an inheritance tax strategy. The sales of bancassurance account fornearly 20% of the total premium income of life insurance companies as a whole.
Dai-ichi Frontier Life, Mitsui Sumitomo Primary Life, and Prudential Gibraltar
Financial Life play a role of driving force as these companies are all specialized inbancassurance business.
3. Suspending sales of savings-type insurance products under the influence of ultra-low
interests
Following major life insurance companies, mid-sized companies are also considering
halting sales of savings-type products. Life insurance companies, mainly major life
insurers, have stopped selling single premium endowment, single premium whole
life, and other certain savings-type products or raised insurance premiums since last

year. Mid-sized life insurers are expected to follow them. These decisions stem fromcontinued falls in the yields of super-long term JGBs, in which insurers mainly
invest, due to the prolonged ultra-low interest rates.
Extra.

Major life insurers entering nursing-care businessIn anticipation of the growing needs for nursing care because of the progression of
the aging and the decline in the birthrate, leading life and non-life insurancecompanies entered nursing-care business such as operating nursing-care facilities. It
is part of their business strategy to corral customers to their facilities and services aswell as to develop nursing products and to increase sales with their enhanced
services. Meiji Yauda Life and Sony Life plan to expand their nursing-care businessby acquiring existing operating companies of nursing-care facilities.
Oriental Life Insurance Cultural Development Center