Bangladesh

1. Proposed Health Insurance Scheme for the Govt. Employee:
The National Pay Commission of Bangladesh proposed Health Insurance Scheme for 1.4
million government employees. It may be implemented from 1st July 2015 if the proposal
would approve. The proposal is under process in the cabinet to finalize within 31st December
2014. Now the government employees are getting the medical allowance as cash value with
their salary instead of health insurance.
2. Mr. M. Shefaque Ahmed – FIA reappointed the Chairman of IDRA:
The government of People’s Republic of Bangladesh reappointed Mr. M. Shefaque Ahmed– FIA as the chairman of Insurance Development and Regulatory Authority (IDRA) for the
next three years. He was also the first the chairman of newly formed IDRA under the
insurance act 2010. By the by there are three qualified actuaries in Bangladesh insurance
industry. The other two are Associate of the Institute of Actuaries (AIA).

3. Newly Licensed 13 New Life Insurance and 2 Non-Life Insurance Companies
Started operating:Government approved license 16 new insurance companies in 2013 out of which 14 Life
Insurance and 2 Non-Life Insurance companies. Out of 16 new insurance companies 15
companies started operating insurance business in Bangladesh. Taiyo Summit Life
Insurance the joint venture of Japan-Bangladesh failed to operates the business due tolimitations. Now there are total 77 insurance operators out of which 31 Life Insurance and 46
Non-Life Insurance. Jiban Bima Corporation (Life Insurance) and Sadharan Bima
Corporation (Non-Life Insurance) are public operators. MetLife ALICO is the only foreign
operator in Bangladesh.
Compiled by M. Ahsanul Haq a highly dedicated volunteer for the Actuarial and Insurance
Profession in Bangladesh. He is involved in the Research for the Mortality Analysis in
Bangladesh, Actuarial & Insurance Education and Training. He is the founding member aswell as the Treasurer of the Actuarial Society of Bangladesh (ASB).
Actuarial Society of Bangladesh

Cambodia

1. Worker insurance near
The government’s long-pledged health insurance scheme for private sector employees,
including factory workers, is just around the corner, officials promised yesterday whilerefusing to name a more specific date. The Ministry of Labour held a public forum on theinsurance plan, which is expected to cover some 800,000 employees.
Currently, the fund covers only workplace-related illnesses and injuries, and takes a 0.8 percent tax from workers’ salaries for the service, according to the ministry. The new healthinsurance scheme is set to operate similarly, splitting a tax between employer and employee.

2. Social Security Fund Starts New Insurance Scheme
The National Social Security Fund (NSSF) on Monday launched an initiative to provide
health insurance to the nation’s workforce, a plan that the country’s largest employers’
associations said was premature. NSSF director Ouk Samvithya said that:-by the middle of this year, enterprises in the country with more than seven employees will
be required to pay into the fund to support the health care initiative. The NSSF counts
more than 880,000 employees at 6,107 firms as members.
-he hopes 900,000 will be part of the health care scheme.
-we have been processing workers’ compensation claims for five years in 24 provinces
and Phnom Penh, and now we are moving to stage two: health insurance.
-Phase two of the NSSF’s plan to raise social welfare standards through compulsory
health insurance would hypothetically see staff covered by the fund, without limit, for all
ailments that prevent them from carrying out their duties at work. The cost of insurance
would be shared evenly between companies and workers.
In phase one of the social security plan, the NSSF dictated that employers pay 1.7 percent
of workers’ salary in return for full coverage, effectively taking on all responsibility in theevent of injury at work. This figure was later revised down to 0.8 percent after lobbying from
GMAC and the Cambodian Federation of Employees and Business Associations(CAMFEBA) in 2008.
The NSSF’s workers’ compensation plan pays out between 5 and 6 million riel, or about$1,250 to $1,500, in the event that an individual’s working capacity is reduced by 20 percent
or more, and guarantees lifelong support should a member become completely

incapacitated.
But according to Dave Welsh, country director of the Solidarity Center, a U.S.-based laborrights group, actually getting NSSF to compensate injured workers is a struggle. When asection of the Taiwanese-owned Wing Star shoe factory in Kompong Speu province
collapsed in May, killing two workers and hospitalizing nine, the NSSF was less thanaccommodating to its members, he said.

3. New laws ensure better insurance
Cambodia's insurance industry began in 1990 with just one state-owned insurer and hassince grown to 11 insurers. The country’s regulator is attempting to keep up with the sector
with the introduction of new rules. The Council of Ministers last week approved changes tothe country’s insurance laws. Youk Chamroeunrith, general manager of Forte Insurance,
which holds 39 per cent of the Cambodia’s market share, sat down with the Post’s Chan
Muyhong this week to discuss the new laws.
What impact will the new laws have on the industry?
This draft law helps insurance companies build a stronger stand in the market as well as
offering consumer protection. This new draft law, I think, has opened up the flexibility forthe regulator [the Ministry of Economy and Finance] to intervene when the industry is
considered not healthy by releasing a subdecree or announcement in addition to theexisting law.
There are other changes; for example, we have a glossary of technical terms whichmakes it easier to comprehend and translate. The process of financial auditing is also
clearer, making it easier for operators to follow. Minimum investment capital remains at$5 million. The new draft law has also included the basic six principles of insurance
industry applied globally.
What will the new laws cover?
The law is also about consumer protection. Consumers are now aware of the rights they
have and how they can act upon those rights. The new draft laws also propose a new
department under the Ministry of Economy and Finance to act as mediator to solve
complaints from customers towards any insurers who are not willing to pay claims. The
purpose is to cut costs and make the insurance companies be responsible to theircustomers.
Others might think this as more restrictive regulation, but I see it as an advantage for theindustry as this draft law will help build more public confidence in the industry.
Article 2 of the draft law is aimed at improving transparency and ensuring faircompetition. Have these been problems in the sector before?

Actually, the industry is already transparent because almost all of the insurancecompanies in Cambodia are audited by an international auditing firm. This industry isalmost the second most transparent industry after banking. Companies that are nottransparent about their financial reporting will not be able to get reinsured by companies
abroad.
Regarding the fair competition, it happened that some companies said they could cover
the same insurance product with a lower standard premium, but when problems occur
they made excuses, saying the claim could be paid only under some conditions. This
frustrated customers.
Article 8 says contracts and agreements should be written in Khmer. Will this be achallenge for the industry?
Normally, the law in any country would prioritize their native language. However, it is achallenge for the industry because we lack words to identify certain terminology used in
the industry. We have based our agreement sample on those from the UK and othercountries that are more advanced in the insurance industry. [This is where] the glossaryis very helpful.
How is the sector changing?
We’ve seen life insurers entering the market and attracting middle-income clients. People
now have more understanding of the benefits of insurance. We can’t project a certain
time for the industry to reach its peak since it really depends on the economy.
Cambodia Life Insurance Company Plc.

China

1. Issuance of Opinions of the State Council on Accelerating the Development ofModern Insurance Industry
On August 10th, 2014, the State Council of People's Republic of China issued Opinions of
the State Council on Accelerating the Development of Modern Insurance Industry, which
defined the overall requirements, major tasks, policies and measures for a long period about
the development of China’s insurance industry. It has been put forward that by 2020, a
modern, compliant, trustworthy, stable, innovative and internationally competitive insurance
industry is to be in place to provide comprehensive protection and exert functions needed ineconomic development and social progress. China, at that time, will not only have a big
insurance industry but also a strong one.

2. Issuance of Opinions on Accelerating the Development of Commercial Health
Insurance
On October 27th, 2014, the General Office of the State Council of the People's Republic ofChina issued Opinions on Accelerating the Development of Commercial Health Insurance.
The State Council aims to set up a modern and compliant commercial health insurance
industry with a comprehensive market mechanism and various types of products by 2020.
Detailed measures have been listed, such as improving the operation of the insurance
industry and the quality of its service to significantly increase the number of people choosing
the insurance and the amount of health expenses reimbursed, and making great efforts todevelop commercial health insurance programs that cover health expenses not covered bybasic health insurance.

3. Launch of China Life Insurance Product Database
By the guidance of China Insurance Regulatory Commission (CIRC), Insurance Associationof China (IAC) launched China Life Insurance Product Database on its website in early
October of 2014(http://www.iachina.cn/product.php?action=company&ttype=1).
IAC built a unified national coding system for personal insurance clauses and a productinformation database by May. Under the system, insurance companies have to assignuniform codes to their personal insurance clauses and print them on insurance policies. With
the codes, customers will be able to visit the IAC website to check on personal insurance
products and clauses like premiums, yield, tenor, surrender value and other terms, usingparameters like product name, product category and insurance company's name. They cancheck on whether the insurance policy they intend to purchase, or have purchased, isauthentic.
The objective of the system is to protect customers as well as combat fraud and mis-selling.
This is because of complaints by customers that they have been mis-sold products, such as
in situations when they had thought they were buying savings products when in fact they
were sold insurance policies. In several other instances, customers have bought wealthmanagement products purportedly backed by insurance companies when in actual fact; theinsurers had nothing to do with the products purchased.
Insurance Association of China

Korea

1. Revision of Regulations on Supervision of Insurance Business
The Regulations on Supervision of Insurance Business were revised to improve the systemof charging business expenses. The aim of this measure is to help insurance companies
maintain and manage in-force policies and enhance refund rates in case of early rescission.
The new regulations relax asset management rules associated with entering overseas
markets and making investments in order to respond to low interest rate environment anddiversify ways for insurers to make profits. Main features include increasing the deferredpayment rate of commission paid to solicitors after signing insurance contracts, reducing
commissions for banks and online channels, and making it possible to invest in more kinds
of foreign currency securities.

2. FSC Announced its Plan for Financial Regulatory Reform
The FSC announced its plan for financial regulatory reform to create new opportunities andgrowth drivers for Korea’s financial industry and economy. The FSC identified both statutory
and implicit regulations which constrained the growth of the financial industry. Out of 3,100
financial regulations, 700 regulations were finally chosen to be reformed. Detailed action
plan to facilitate competition and innovation of the insurance industry include expanding theautonomy of insurance premium pricing, easing regulations on asset management, andabolishing implicit regulations existing in forms of industry practice or administrative
guidance. One of the main features is expanding the adjustment range of the standard rate
for calculating the interest rate that applies to the floating rate products from 10 percent to20 percent.

3. Comprehensive Measures to Protect Personal Data in the Financial Sector
The FSC and relevant ministries jointly announced a package of measures to prevent a
recurrence of personal data leaks in the financial sector. The measures were drawn up
based on the following basic principles, further developing a series of measures previously
announced since the data leakage from the three credit card companies were revealed last
January:
1. Financial firms will be asked a greater responsibility in handling their customers’
personal data at each stage that they collect, retain, use and discard such

information
2. Financial consumers’ right to their personal information will be ensured so that they
can decide for what, when and how their own personal data are being used.
3. Financial firms will be held more accountable for personal protection and strictly
punished in the event of personal data security breach.
4. Cyber security measures will be strengthened across the financial sector.
5. The government will make sure financial consumers’ personal data previously
provided or illegally-circulated not to be misused by scammers.
Korea Life Insurance Association

Malaysia

1. Addressing the Life Insurance Protection Gap in Malaysia
LIAM has commissioned Universiti Kebangsaan Malaysia to study the “Protection Gap in
Malaysia” as part of the industry’s effort to fulfil the Government’s aspiration of ensuring that
75% of the population is insured.
The Study uncovered that Malaysian households are substantially underinsured. The
average protection gap for families (2 adults and 3 children) whose primary wage earner has
both life and medical insurance was RM553,000 per family. Families whose primary wage
earner was covered by a life policy only and not a medical policy had a slightly higher gap, at
RM642,000 per family. The average protection gap for the group headed by a breadwinner
who was not covered by either life or medical insurance was largest, at about RM723,000
per family. The results of this study also indicated the need for insurers to develop low
premium products that have a wide reach to consumers at large.

2. How LIAM responded to MH Tragedies
LIAM had played proactive roles in responding to two incidents involving two Malaysia
Airlines aircrafts, the MH370 and MH17 which happened in March and July 2014.
LIAM had set up a hotline to handle all queries with regards to the claims procedures forfamily members to smoothen the claims process and speed up claims payment. LIAM
member companies came out with a consensus to waive the requirement of deathcertificates.and made special consideration to waive the exclusion clause under the
extraordinary circumstances.
For MH370, a total of RM16.8 million were paid to the next-of-kin involving 187 policies while
RM13.7 million were paid for MH17 for 98 policies.

3. Celebrating 40 years of LIFE in a memorable way
LIAM achieved another milestone this year when it celebrated its 40th Anniversary in amemorable way – promoting camaraderie within the industry’s community and paid special
tributes to its past Presidents who had served the industry for the past four decades.
The historic celebration dinner was graced by the Deputy Governor of Bank Negara
Malaysia, YBhg. Dato’ Muhammad bin Ibrahim on 21 November 2014 at the Grand Hyatt
Hotel Kuala Lumpur. It was witnessed by 400 current and former industry’s captains,practitioners, stakeholders and regulators from three different generations – baby boomers,
Gen X and Gen Y who have contributed to the development of the industry.

4. Celebrating 40 years of LIFE – Caring for the community through Insurans
Hayat Cares
In conjunction with its 40th anniversary, LIAM has brought its community service program tothe next level by launching Insurans Hayat Cares – a community service platform for the life
insurance industry with the objective to be more effective in engaging with the community.
At the anniversary dinner celebration on 21 November 2014, the Deputy Governor of Bank
Negara Malaysia, YBhg. Dato’ Muhammad bin Ibrahim unveiled the Insurans Hayat Cares’“Be Frank” Cancer Booklet, as part of its cancer research and awareness program for thecommunity, a collaborative effort with the Cancer Research Initiatives Foundation (CARIF).
A grant of RM50,000 was also presented to the Chief Executive of CARIF, Professor Dr.
Teo Soo Hwang to signify LIAM’s commitment in cancer education.
Life Insurance Association of Malaysia

Pakistan

Overview of Recent Initiatives to Enhance
The Regulatory and Supervisory Framework Of Insurance Industry(1)

SEC (Microinsurance) Rules, 2014:

These rules have been issued in February 2014 for the development of Microinsurance
sector in Pakistan. The rules prescribe the standards for conduct of micro insurance
business while keeping strong focus on consumer protection, transparency, and disclosure
requirements. Micro insurance is a small-scale insurance protection for low-income people
against specific risks in exchange for a premium payment proportionate to the risks involved.
In order to serve the low-income population, which is mostly ignored by mainstream
commercial insurance businesses, there is a need for small ticket-sized micro insurance
products to protect crops, livestock, health, life, and domestic households.

Variousdeveloping countries have prescribed specific regulatory frameworks for micro insurance. In
order to achieve consensus and to take all stakeholders on board, the SECP had formed aworking group on micro insurance to propose a regulatory framework. The consultations
were done with all relevant stakeholders, including the Insurance Association of Pakistan(IAP), Pakistan Microfinance Network (PMN), Pakistan Poverty Alleviation Fund (PPAF),
State Bank of Pakistan (SBP), microfinance banks and donor organizations. There are morethan 4 million micro insurance policyholders in Pakistan. The SECP, in coordination with theWorld Bank published a research report on 'Micro insurance in Pakistan' in October 2012.

(2)

Third Party Administrators (TPA) for Health Insurance Regulations, 2014: The

SECP has issued the Third Party Administrators (TPA) for Health Insurance Regulations,2014 to develop the health insurance market in Pakistan. The TPA Regulations provide alegal framework addressing the registration, eligibility requirements, code of conduct andoperational model for TPAs, fit and proper criteria for the senior management and the writtenagreement between a TPA and an insurer. The new TPA Regulations have addressed
consumer protection as well as market development aspects. The consumer protection
aspects have been addressed through various requirements, for example, these regulations
require that the compensation structure of TPA can’t be linked with the claim loss ratio.
Similarly, introduction of a code of conduct for TPAs will ensure that TPAs will be functioning

within the role envisioned in the new regulatory framework. The market development
aspects have been addressed through requiring an online health benefit system and not
imposing a regulatory cap on the compensation of TPAs. The newly introduced regulations
also clarify the role of TPA as an administrative service provider and not a risk carrier.

(3)

Centralized Information Sharing Solution for the Life Insurance Industry(CISSII): The SECP, as a part of its ongoing insurance reforms, has issued a regulatory
directive through S.R.O No. 162(I)/2014 to direct the life insurance companies and family
takaful operators to participate in the Centralized Information Sharing Solution for Life
Insurance Industry (CISSII).

The objective of the directive is to promote a formal

information sharing mechanism by making membership mandatory for life insurancecompanies and family takaful operators.
The Centralized Information Sharing Solution for Insurance Industry (CISSII) is an
information technology based formal mechanism through which insurers can share specified
critical information on real time basis. The CISSII has four components namely— acentralized agent’s register including s-register, centralized register for postponed anddeclined life risks, centralized claim register and centralized group life claim experienceregister. Centralized agent register including s-reference register shall contain the agreed
information in respect of all codified agents of the insurer. The s-component shall containcodified adverse information relating to the misconduct of agents. The centralized registerfor postponed and declined life risks shall contain the name and CNIC of the potential
customer, proposal date, codified medical and non-medical information, source of medical
information and effective date of underwriting decision etc.
Securities & Exchange Commission of Pakistan Insurance Division

Philippines

1. Philippines leads East Asia in microinsurance.
The Philippines had the highest microinsurance penetration ratio and the second highest
penetration, based on a 2013 study commissioned by the Munich Re Foundation.
Roughly 27.96 million Filipinos had microinsurance coverage in 2013, among the highest in
the East Asian region.
At the start of 2013, there were 80 microinsurance products – 54 are classified as life
products and 26 as non-life products – approved by the Insurance Commission.
The Philippines recorded a 20.6-percent penetration ratio or the highest among the top 10
nations covered by the study.
It was followed by the 13.9 percent in Thailand, nine percent for India, 6.1 percent for
Bangladesh, and 3.7 percent for Malaysia. The rest of the countries based on ranking are
Pakistan, Cambodia, East Timor, Jordan and Nepal.

2. Tapping microinsurance to help address health, disaster risks.
To provide products that specifically address health and disaster risks, the Department of
Finance, Insurance Commission and Department of Health in partnership with the private
sector draft a framework for health microinsurance and promote a more elusive healthinsurance system.
Disaster-related insurance, on the other hand, is also gaining ground as more financial
institutions participate to protect the most vulnerable.
While microinsurance is not the silver bullet to poverty eradication, it gives individuals the
chance to quickly recover from a financial loss.

3. Local insurers should not fear ASEAN integration.
The upcoming financial integration of the 10 members of the ASEAN should prove more
beneficial to local insurers because then, the industry would be able to tap into the larger
markets of the country’s ASEAN neighbors, says Insurance Commissioner Emmanuel F.
Dooc, to dispel fears of some insurance companies that the country’s commitment to open
up the insurance sector to foreign competitors will lead to their own demise.
“One of those efforts to strengthen [the industry] is the raising of the capital requirements,”
he added, referring to the new capital requirements needed to establish new insurancecompanies or continue operating as such.
Another initiative that the Insurance Commission is pushing to improve the competitivenessof insurance companies is the bill that will lower the tax rates on premiums paid for nonlife
insurance policies currently at 25 percent for property insurance and 27 percent for fire
insurance.
The Commissioner said that the new Insurance Code, which was passed last year, also
helps the insurance companies prepare for possible competition with foreign insurancecompanies when the Asean financial integration starts by 2015.
Philippines Insurance Commission

Taiwan

1. The amendments to the Insurance Act
In order to strengthen the independence of the board of directors of the insurance
industry and the implementation of corporate governance, strengthen the insurance
industry to exercise the right of shareholders to be invested by the investmentcompanies and securities commodity propriety rights, promotion of the insurance
industry in order to invest in the domestic stock market elasticity of foreign
currency-denominated commodities, assist insurers in Asia layout, strengthen theinsurance industry and related supervision measures exit mechanism, the Legislative
Yuan amended by certain provisions of insurance law, to maintain the stability of theinsurance market, insurance policyholders' rights and sound development of the market
has a positive benefit.

2. Global Life and Singfor Life took over matters
Both of Global Life and Singfor Life their financial condition deteriorated remarkably inrecent years due to poor management resulting in the capital adequacy ratio below thelegal standard. The competent authority assigned the Insurance Stabilization Fund asreceiver to take over of the two companies. After being taken over, Global Life andSingfor Life will still continue operating. The interests of policyholders in accordancewith the contents of the insurance contract cannot affected, the future of Global Life andSingfor Life will adopt auction manner.

3.The opening of overseas real property investment
In order to enable the use of the funds of the insurance industry more efficient, taking
into account the principles of supervision and management differences, the FSC revised
related laws and regulations, so that meet certain eligibility conditions of the insurance
industry, it is ready to "specific purpose real property investment enterprise" and " trust "two ways to buy each case of foreign and the mainland real property, alternative the way
to advance case by case basis recordation sent to the FSC for approval of the way
investment, which will be able to expand the investment target selection of insurance
industry, and it is positive benefit to improve the insurance industry income and reduceinvestment risks.
The Life Insurance Association of the Republic of China

Thailand

1. Overview of Life insurance in Thailand for 2014
The life insurance business in Thailand has been growing continuously in the year
2014, with a total direct premium income of 412,043 million Baht and an overallbusiness growth of 14.56% (statistics from January- October 2014). The growth oflife insurance business is due to many factors such as improvements of life
insurance products, technology advancements, various distribution channels, public
relations, and human resource development. Most importantly, the growth of Life
insurance business in Thailand is due to the help and support from the Office of
Insurance Commission (OIC).

2. Technology Advancements for Faster and Convenient Agency Examination.
Thailand has been keeping up with the latest technology advancements and using it
to make the Life insurance agency license examinations faster and more convenient.
These examinations can be taken online in the city (Bangkok) and in other provinces
throughout Thailand. With the examinations being done online, the examiners canfind out their examination results immediately. Examinations can be taken at Thai
Life Assurance Association (TLAA) or Thailand Insurance Institute (TII). At TLAA,
from January-November2013, there were 122,750 people who registered for theexamination (70%) as compared to 52,397 people that registered for theexamination at TII (30%). For the year 2014 (January-November), at TLAA, there
have been 179,998 people who registered for the test (84%), as compared to 33,085
people who registered for the examination at TII (16%). From 2013-2014, at TLAA
alone, we can see a 56.24% increase in the people who registered for the Life
insurance agency license examination. We are hoping to see these numbers
increase in the next year.

3. Regulators are continuing to better Life insurance businessIn the past year, Regulators have continued to find new ways to satisfy Life
insurance companies and to overall better Life insurance business in Thailand.
Since August 2013-present, Regulators have been working on the Risk-Based
Capital Phase 2 (RBC 2). The RBC 2 will be an improved RBC framework that will
be implemented in accordance with the roadmap. As of October 2015, the RBC 2 isin its final stage. Also, Thai Life Assurance Association in cooperation with Office of
Insurance Commission is in the development stage for the Insurance Bureau
System (IBS) project to create a strategic plan to promote and regulate Life
insurance business for better efficiency. The objectives of this project are to upgrade
the insurance industry operations, increase the potential to compete internationally,
and to give everyone the chance to access information. Phase 1 of this project
should be ready to use by the second quarter of 2015 (2/2015).

The Thai Life Assurance Association

Uzbekistan

１．OLIS on-site seminar was hosted in Tashkent
In the continuation of activities for the life insurance development State Insurance
Supervisory Board under the Ministry of Finance of the Republic of Uzbekistan and
OLICD Center hosted seminar “Life insurance: products, sales channels and asset
management” in April 24, 2014.
The aim of this seminar is increasing knowledge and sharing of experience withspecialists of Uzbek life insurance companies.
Mr. Shigeaki Terada, President of OLICD Center delivered a welcome speech. He
briefly introduced the history, mission and activity of the Center. Mr. Makoto Okubo –Chief Manager of international relations department of Nippon Life insurance company
representative in New York was invited as a lecturer. The lecturer shared his many years’
experience in risk management of life insurance company and told a case study ofproblems that life insurance companies meet.
２．Changes in legislation stimulating the expansion of life insurance
To stimulate widening the activity of life insurance companies there have been madechanges to the Insurance and Reinsurance Companies’ Solvency Regulation in
November 11, 2014, which give insurance companies an opportunity to create affiliatedlife insurance companies.
３．One more life insurance company began operations in 2014
On August 21, 2014 The Ministry of Finance of the Republic of Uzbekistan gave thelicense to Temiryo’l-Life insurance company to operate in the life insurance sector.
For now 3 life insurance companies operate in Uzbekistan insurance market. As a resultof created conditions in insurance market and improvement of legislation 2 more life
insurance companies are planned to be founded in 2015.
Ministry of Finance of Republic of Uzbekistan

Viet Nam

Vietnam life insurance market maintains stable growth in 9 months of 2014 at 25% (in totalcollected premium) and it forecasts a growth rate of 22% at the end of 2014. This is thesecond year growth rate of life insurance market is over 20% which raise the penetration
rate of life insurance to 0.73% in 9 months of 2014. Listed bellowed are the top news ofVietnam life insurance market in 2014.
1.

By the end of 2014, Ministry of Finance will issue a circular guiding accounting

scheme of life insurance companies. This is the first and most comprehensive Circular as a
guideline in accounting system for life insurance companies to follow which is composedbasing on the particular characteristics of life insurance industry.
2.

MinistryofFinance

and

State

Bank

issuedJoint

CircularNo

86/2014/TTLT-BTC-NHNNVN guiding the operation of credit institutions and branches offoreign banks as agents of life insurers in Vietnam. The circular regulates the activities thatcredit institutions and branches of foreign banks are authorized to do; rights and duties ofcredit institutions and branches of foreign banks and life insurance companies as well asreporting responsibility of credit institutions and branches of foreign banks.
3. The government issued legal documents to solve the difficulties of insurance agents, inwhich there are significant incentive regulations for life insurance industry:-

Insurance agent whose payable amount of PIT (personal income tax) is withheld byinsurance companies doesn’t have to make final PIT settlement on that income(Decree No 91/2014/NĐ-CP and circular No 151/2014/TT-BTC).

-

The tax rate for insurance agent is 5% of the amount of income over VND 100
million/year (about USD 4.651) generated from insurance agent activities (Law No
71/2014/QH13 amending and supplementing a number of articles of the Law on
Taxes).
Association of Vietnamese Insurers

Japan1. Japanese life insurance companies are proceeding for the development ofoverseas markets at a rapid pace.
As the aging population with a falling birthrate is further advancing, Japanese life
insurance companies are rapidly developing the markets in Asian countries where
the expansion of economic growth and middle-income class is expected.
Examples are:- India: Dai-ichi Life and Nippon Life
- Thailand: Dai-ichi Life, Nippon Life and Meiji Yasuda Life
- Vietnam: Dai-ichi Life and Sumitomo Life
- Indonesia: Meiji Yasuda Life, Dai-ichi Life and Sumitomo Life.
Each company brought its own know-how or adopted local customs to establish asales technique, and has been challenging to an advancement in growing markets.
In addition, Dai-ichi Life also succeeded in huge acquisition of the US midsize
insurer, Protective Life Corporation in August 2014, adding a surprise to theindustry.

2. In order to prevent the insurance non-payment problem, Life Insurance
Association of Japan will announce the guidelines by next summerLife Insurance Association of Japan, or LIAJ, is preparing the guidelines thatsummarize the measures and points to be considered in elderly policyholders. Thisis because the number of non-payment cases caused by the unawareness of thecontracts when policyholders deceased is increasing. The proportion of elderly inthe total policyholders is on the raise every year, and 17% of the policyholders of
new contracts in 2012 was over 60 years of age. Because life insurance is along-term contract, detailed corresponding should be required especially to theelderly.
Based on these facts, LIAJ plans to provide with its member companies theguidelines by next summer.

3. Signs of price competition in the life insurance industry
It is likely that the competition of premium reduction will become more intense inthe life insurance industry. The rise of on-line insurance companies that sellaffordable products through the Internet and the advancement of insurance shops
where customers are able to compare various products of different companies areaccounted for behind this competition. Nippon Life, the leading life insurancecompany in Japan, executed the remarkable premium reduction for the younger
generation in this April, and other insurers are expected to follow suit.
Oriental Life Insurance Cultural Development Center