Globe Life Shares Plunged

Shares of insurance giant Globe Life Inc. plunged 53% today and trading was halted eight times after a short-seller issued a damning narrative on the company. Fuzzy Panda Research described "extensive allegations of insurance fraud" at Globe's wholly-owned subsidiary American Income Life.

Last year, Agents at a leading AIL sales agency, the Pittsburgh-based Arias Organization, had forged signatures and opened accounts in the names of dead people. Short seller report says "dozens of former executives and agents told us that the problems of fraudulent insurance production for Globe Life is an AIL problem, not limited to Arias" and claims Fuzzy Panda uncovered allegations of fraud at many of AIL's largest agencies.

Fuzzy Panda sent people undercover to apply for jobs at AIL agencies. They reported back that one recruiter had a criminal record, another suggested the applicant use a fake address to avoid seeking a license in a state where standards were high, and a third appeared to offer cocaine if the recruit had great sales in his first week.

It characterizes AIL as a "pyramid scheme" where agencies were incentivized to write more and more bad policies each year to fuel growth. "If you thought it could not get any worse," Fuzzy Panda writes, "American Income Life has also fostered an environment permissive of sexual assault, rape, racism, and widespread illicit drug activity."

Insuring Life of Other Person

People purchase life insurance on other people for a variety of reasons. Still, in every case, it’s about protecting themselves from financial hardship in the event that something happens to the insured individual. Here are a few reasons why you might buy a life insurance policy on someone else:

You’re financially reliant on another person - If you are receiving financial support from a parent or alimony from a former spouse, buying life insurance on them could provide comfort that your needs will be covered after their death

You’re looking out for your grandchildren - Some parents buy life insurance on the lives of their adult children for the benefit of their grandchildren. Their adult children may not have it in their budget to buy life insurance, leaving the grandparents with the option to buy a policy that makes sure their grandkids are protected.

You’re a business owner - If you own a business, you may buy life insurance on a business partner. This may allow you to be able to buy their interest in the company without the need to take on debt.

There are plenty of situations where it makes sense to buy life insurance on another person. 
There are many different types of people you can buy life insurance on. Here are just a few of the most common types of people you can buy life insurance on and some helpful reasons why someone may consider this.

Spouse - Buying life insurance on a spouse — or ex-spouse — can be a valuable part of a financial plan. If your spouse is the family’s breadwinner, you might buy life insurance on your spouse to cover final expenses, including funeral expenses and unsettled health expenses. You could also put the life insurance payout toward income replacement, paying off your mortgage or estate planning.

Children - Many people buy life insurance on their minor child to protect their future insurability or to provide some money for them through the cash value account. Children are more likely to get stronger rates with no-exam life insurance because they’re young and healthy.

Grandchildren - A common strategy is for grandparents to buy a life insurance policy on their grandchildren. This is a nice legacy gift that protects your grandchildren’s future insurability, provides some cash value later in life and reminds the grandkids of their legacy.

Business partners - If your business partner were to pass away unexpectedly, how could your business handle buying out the partner’s family? This is why it’s common to have a buy-sell agreement with your business partner. Buy-sell agreements are most commonly funded with term insurance.

Key employees - Making sure your company can survive and thrive after the death of a key person is important. Having a life insurance fund the replacement of revenue lost or new expenses is important to your livelihood. These policies are often whole life insurance because it lasts the life of the insured and allows the business, as the policyholder, to build cash value.

Nippon Life Launched In India

Nippon Life Insurance, an insurance firm from Japan, has announced the establishment of its newest subsidiary in India. The firm stated that the launch of the new subsidiary in the country will help in bolstering its operations in the market. Singapore-based unit Nippon Life Asia Pacific has formed Nippon Life India as its direct subsidiary, which will provide management support as well as market research for the affiliates of Nippon Life located in India.

India is an important market to the firm as it was the world’s most populous country and that it had promising growth prospects. Prior to the launch, the firm had only been conducting its business in the country through partially owned local entities. With the new subsidiary, the life insurance division will be offering products to individuals as well as organizations while the asset management division will be dealing with stocks, bonds, and exchange-traded funds.

The firm’s operations in India had been managed by Nippon Life’s headquarters, which is located in Tokyo. However, such functions were being transferred to its subsidiary in Singapore at the start of the new fiscal year.

The goal of the new subsidiary in India is meant to further enhance collaboration within Nippon Life’s local affiliates in the country as well as boost its capabilities when it comes to the line of research.

China Taiping Insurance Scandal

Xiao Xing, a former deputy general manager of state-owned China Taiping Insurance Holdings Company Limited, has been indicted on charges of accepting bribes.

Following the completion of the National Commission of Supervision's investigations, the people's procuratorate of the city of Xinxiang in central China's Henan Province filed Xiao's case to the city's intermediate people's court.

Prosecutors accused Xiao of taking advantage of his various posts and abusing his power to seek illicit gains for others, while illegally accepting a huge amount of bribes in the form of money and valuables in return.

China National Health Scheme - 95% Insured

The National Healthcare Security Administration of China has announced a steady maintenance of over 95% coverage within the country's basic medical insurance scheme, alongside noted enhancements in the system's overall quality.

Records from the administration – reported by China Daily – illustrated that, over the past two decades, governmental contributions to the basic medical insurance fund for the rural populace and unemployed urban citizens have escalated at a rate surpassing individual payments.

This development signifies increased governmental support for economically disadvantage groups and individuals requiring assistance, China Daily reported.

Contributions of medical insurance policyholders in China - Detailing the financial contributions, the administration highlighted that an individual continuously insured from 2003 to 2023 has contributed a total of 2,640 yuan (equivalent to approximately US$371.90), which accounts for nearly 30% of the overall premium.

The period witnessed the inclusion of 744 pharmaceuticals into the medical insurance catalogue, with the system successfully integrating more than 80% of new drugs within two years of their market introduction.

Currently, the basic medical insurance scheme offers a reimbursement rate of about 70% for inpatient healthcare expenses for rural and non-employed urban residents. In the fiscal year 2023, personal payments towards the basic medical insurance premium for these groups totalled 349.7 billion yuan, with governmental subsidies almost doubling to 697.8 billion yuan.

In its annual work report, the government said it was committed to refining medical services, emphasizing a strategy centered around patient care.

Ping An Trust - Missed Payment

Ping An Trust's missed payment adds to signs of spreading stress in a financial market dragged down by the property crisis. A subsidiary of China's Ping An Insurance failed to repay a roughly $107 million trust product on time, citing the property market crisis and adding that it is suing developer Zhenro Properties with which it invested the sum. 

Real Estate Exposure - Concerns have grown over the past year about the outsized exposure of China's $3 trillion shadow banking sector, roughly the size of Britain's economy, to developers and the wider economy as the real estate sector lurched from one crisis to another.

Ping An Trust has delayed repayment of its "Funing 615" trust plan, it said in a statement on Wednesday. It said the delay was "due to the overall downturn in the property market".
The firm said it is actively following up on the project development, sales and the return of funds of the underlying real estate project.

Its overall performance remains stable and its business conditions are sound, it said in the statement. The trust product matured on March 29 and was launched in September 2021. It raised 772 million yuan ($106.74 million), state media Securities Times reported.

Ping An Trust reported 14.55 billion yuan in revenue last year and had 662.5 billion yuan of assets under management at the end of last year, according to Ping An's financial report.
Shares of Ping An Insurance fell 0.89% in Shanghai in Thursday morning trade and shed 1.38% in Hong Kong, underperforming the Shanghai and Hong Kong benchmark indexes.

Headwind Economy - The debt crisis engulfing China's beleaguered property sector is one of the main headwinds to the country's economic growth, and has led to an uncertain future for some of the biggest real estate developers, including Evergrande Group and Country Garden.

The trust sector had been a major fundraising channel for property developers seeking rapid expansion. But since 2021, when real estate slipped into a downturn, some trusts have gone bust, while others have divested investments in property firms amid Beijing's stepped up efforts to regulate the shadow banking sector.

The latest wave of missed payments in the shadow banking sector could weigh on already fragile consumer confidence as many individual investors are exposed to the high-yielding trust products.

Wealth manager Zhongzhi Enterprise Group filed for bankruptcy liquidation in January 2024 after its trust firm failed to repay debt. And early this month, Sichuan Trust was approved to go bankrupt after it failed to pay a wave of WMPs in 2020.

On Wednesday, Shanghai police said in a statement it had launched an investigation into local wealth management firm HHSC Capital. The investigation came after the firm said in a letter to investors it is insolvent and cannot continue operations, local media reported. The firm failed to repay some WMPs last year, they reported.

Sub Life Launched Universal Life - Singapore

Sun Life Singapore and Prudential Financial Advisers Singapore (PFA) signed a collaboration to offer the insurance package SunBrilliance Indexed Universal Life for PFA clients. 

SunBrilliance Indexed Universal Life will be the first universal life solution plan for PFA clients.
Through this partnership, it will be the first universal life insurance solution made accessible to active PFA clients.

Target High Net Worth - SunBrilliance Indexed Universal Life is the most recent offering from Sun Life Singapore for affluent and high net worth (HNW) clients.

With an indexed account linked to the S&P 500 index performance, the package offers first-in-market features, like Legacy Plus for death benefit payouts and a cap of S$27,000 (US$20,000) for every purchase of SunBrilliance Indexed Universal Life towards charity programmes under the Sun Life Singapore Philanthropic Pledge.

Sun Life Singapore made the product available in July 2023 as a response to HNW clients in Singapore and Asia switching to more lucrative life insurance solutions, given the market volatility and high-interest rates.

With lifetime coverage, high growth potential, and tighter protections, SunBrilliance Indexed Universal Life aims to meet the wealth planning needs of HNW policyholders.