Malaysian Braces For Medical Premium Hike

Insurance companies are considering to raise medical insurance prices in 2021. A hike on premiums by most insurance companies was supposed to take place in 2020, but they decided to defer it to 2021 in light of the Covid-19 pandemic.

Federation of Malaysian Consumers Associations (Fomca) says this is still too soon, as many are still grappling with financial constraints and uncertainty. It recommend the price increase should take effect in 2023.

The call to delay the price hike has been backed by the National Association of Malaysian Life Insurance and Family Takaful Advisors (Namlifa). Both Fomca and Namlifa have also previously called on Bank Negara Malaysia to intervene and protect consumers.

The amount of price increase is dependent on the various insurers and takaful operators (ITOs) and policyholders, ranging from 5% to 40% per policyholder. It’s not set as a standard across the board. It is anticipated that older policyholders suffer higher increases compared to the younger ones.

Bank Negara tells Sunday Star it has been engaging key stakeholders to manage the medical insurance repricing. BN recognises the challenges faced by many Malaysians arising from the pandemic. But it points out that insurance industry players have introduced steps to preserve protection coverage for policyholders with financial difficulties.

This includes temporary premium or contribution deferment, interest-free installment payments, or the ability to switch to an alternative plan with no additional underwriting requirements. These flexibilities have provided financial relief to almost 60,000 affected policyholders and takaful participants, who opted to defer their premium payments by three months, totaling more than RM74mil collectively.

The bank urges policyholders or takaful participants to contact their respective ITOs or agents to find out about the options available that best meet their needs. It’s important to note that for medical and health insurance and takaful (MHIT) products, premiums and contribution adjustments are highly impacted by medical cost inflation.

BN highlights that MHIT claims grew at a faster rate of 11.6% a year compared to the MHIT premium of 9.5% yearly between 2016 and 2019, based on its 2019 annual report. This trend, coupled with the rising cost of private medical care in Malaysia, which is reported to be among the highest in South-East Asia and above global average, continually puts pressure on the pricing of MHIT products. It also puts stress on the long-term affordability of private healthcare services in Malaysia.

More Scams During Covid

A mobile app specialising in blocking unwanted calls, recently released its latest insights on the trend of spam calls in Malaysia. Based on their findings, spam calls from financial services increased by 95% while those from insurance companies increased by 50% in the past year.

Malaysia also saw a slight increase of 2.7% in total spam calls in 2020 compared to the previous year. The Swedish company also stated that 97% of spam calls in Malaysia were made from domestic numbers.

Based on their data, 41% of spam calls in Malaysia were made by financial services while 24% were from scammers. This was followed by insurance related spam calls which made up 15% of all calls.

The biggest decrease in spam calls occurred in March and April, which was the period in time when the Movement Control Order (MCO) was implemented. In March, the volume of spam calls dropped to just over 6 million and it dropped even further down to just over 2 million in April. This was probably due to limited access to certain equipment and technologies for both telemarketers and scammers.

This brief respite was not meant to last as spam activity increased again from the month of May and June as lockdown measures eased. Now, towards the end of 2020 it looks like it is business as usual for scammers as the numbers returned to the same levels at the beginning of the year.

The vast majority of fraudster like to prey on the elderly, children and housewives. Scammers are also known to exploit these group of people by claiming to be their loved ones or authority figures like the Inland Revenue Board (IRB) or police.

Last year Malaysia had the dubious honour of being ranked number 19 on the list but it looks like things have slightly improved as it is no longer listed among the top 20.

Insurance Covers Covid test

The surance and takaful industry has broadened their eligibility criteria of the Covid-19 Test Fund (CTF) to include asymptomatic patients effective today to encourage them to get tested and curb the spread of the virus. The CTF reimbursement is limited to one test per policy or certificate holder only and it is valid until June 31, 2021. 

In a joint statement, Life Insurance Association of Malaysia (LIAM), Persatuan Insurans Am Malaysia (PIAM) and Malaysian Takaful Association (MTA) said all policy or certificate holder who are asymptomatic can claim from the CTF for the Covid-19 test performed at any authorised labs or medical facility under the Ministry of Health (MOH).

The CTF is a RM8 million fund set up by the industry to back the government’s efforts in conducting more screening for the virus. The fund will provide a fixed cash reimbursement for the cost of Covid-19 testing for individuals covered under individual or group Medical and Health Insurance policies or takaful certificates (MHIT) . 

For asymptomatic individuals, MHIT policy or certificate holders can reimburse up to RM100 per test for Reverse Transcriptase – Polymerase Chain Reaction (RT-PCR) or up to RM50 for Rapid Test Antigen (RTK-Ag).

Meanwhile, group MHIT policy or certificate holders, limited to 50 employees per policy, can claim up to RM50 per test for RT-PCR and RTK-Ag. Under the CTF, persons under investigation and individuals who require emergency or semi emergency surgery are eligible to reimburse up to RM300 per test for RT-PCR. Hospital admissions for non-emergency and non semi emergency surgery can claim up to RM100 per test for RT-PCR and RM50 per test for RTK-Ag.

Digital Platform Disrupting Insurance Industry

The growing use of e-commerce and digital wallet apps in emerging markets such as India, Indonesia and Malaysia represents an opportunity for re/insurers to make progress in closing protection gaps. Supportive government policies and a COVID-enforced spike in digital activity have increasingly pushed consumers online this year, with 68% of respondents in these three countries using digital platforms at least once per week.

Of the 1,800 respondents to the survey, an average of 70% expressed interest in using online channels to purchase insurance. Among the different types of digital platforms, consumers in India and Indonesia showed a stronger preference towards purchasing insurance through digital wallet platforms, such as Google Pay in India, OVO in Indonesia, while Malaysians prefer to purchase from bank or insurer websites or apps.

Health and safety measures intended for curbing the spread of COVID-19 have now driven a clear paradigm shift towards digitalisation in the post-virus era. With an increasing number of digital platforms extending their business reach into financial services, insurers need to adapt their business models to become more relevant and responsive to the latest customer needs.

Partnering and working with digital platforms and ecosystems will give insurers access to millions of consumers that are often under-protected, especially in markets across Southeast Asia. In particular, the reinsurer noted potential benefits in life and health insurance, which could leverage data from platforms such as health tracking apps.

Meanwhile, digital platforms could benefit from business diversification and stronger customer loyalty by offering financial services online.

It will be a priority for insurers to carefully calibrate their digital strategies to capitalise on the opportunities offered by digital platforms. Leveraging on underwriting expertise and risk management experience, insurers and platform partners can not only learn but also apply their consumer insights to enable more customers to narrow their protection gaps.

Indonesia OVO Tie-up With ZhongAn

Indonesian mobile wallet Ovo and ZA Tech, a joint venture of ZhongAn and SoftBank’s Vision Fund 1, have teamed up to create an insurtech platform, Ovo announced on Tuesday through its holding company PT Bumi Cakrawala Perkasa (BCP).

Ovo said that the new service will be ready next year and that it will draw on ZA Tech’s proprietary technology and applications. Insurers can make their digitized products available on the Ovo app. The joint venture will certainly support the rise of insurance aggregators or marketplaces.

Insurance penetration is very low in Indonesia, it only reached 2.77% in 2018 according to the General Insurance Association of Indonesia (AAUI). However, the COVID-19 pandemic has led to a rapid rise in demand for protection, showing there is a vast potential growth in Southeast Asia’s largest economy.

The new alliance is in line with Ovo’s plan to further strengthen its proposition in digital insurance. This startup wants to provide the most comprehensive suite of financial services to all Indonesians through additional insurance and investment offerings. In May, Ovo launched online insurance products in collaboration with Prudential Indonesia.

Hong Kong Investment Scam

The Hong Kong police have announced that they have arrested 24 people, including 11 insurance agents, in connection with an HK$475m ($61m) investment scam.

Around 260 victims, aged between 24 and 77, had invested in a fund which the alleged scammers claimed was set up by a "renowned international insurance group". The individuals reported losses of between HK$200,000 and HK$20m each. Most of the victims are from mainland China.

The scam took place from 2013 to 2018 when investors in the fund discovered that its value had plunged by over 90%. The fund was liquidated in February 2019. The fund was listed on a platform run by an international insurance company.

It is understood that the fund involved is the “Worldwide Opportunities Fund SPC – Hong Kong Investment Fund SP” (HKIF), a fund managed by CES Capital International (Cayman). It is one of several assets which policyholders of a non-guaranteed investment-linked life insurance product, distributed predominantly by independent brokers, can choose independently to invest in.

The police began investigating the syndicate after police started receiving reports from the insurance company and the victims from January last year.

During the 22-month investigation by the police of the case, around HK$420m worth of assets, including cash of over HK$50m and real estate valued at around HK$370m, are frozen. Those arrested face money laundering and fraud charges.

Indonesia General Insurance Agent Code Of Practice

The Indonesian General Insurance Association (AAUI) released a standard code of practice for general insurance agents. This is set out in “Standards of Practice and Code of Ethics for Indonesian General Insurance Agents.

AAUI executive director Dody Dalimunthe explained the standards and code are drawn up in fulfilment of the insurance law and as a guide for AAUI members in carrying out insurance distribution and in working with general insurance agents. This issuance is to standardise rules of conduct and ethics for general insurance agents who have an agency agreement with an insurance company that is an AAUI member.

AAUI deputy chairperson for the agency sector, Mr Bambang S Soekarno, added that one of the important points stipulated in this code of conduct is that an insurance agent is not allowed to be tied to more than one insurance company.

Insurance agents must be registered with the Financial Services Authority (OJK), and the AAUI is authorised by the OJK to register general insurance agents. The insurance agent must submit a registration application to the Association.

Life Insurance Multiple Benefits

The unpredictability of life has made itself more evident with the threat of global pandemic and this has made us acknowledge the importance of protecting our loved ones. A reliable way to ensure that they are secure even in the face of a crisis is to purchase life insurance.

If you have financial dependents, it is crucial to plan your expenses and savings. It helps you invest your income in the right place at the right time. Life insurance is one of the most popular financial instruments that offer protection against unforeseen circumstances. You cannot put a price on life, but you can ensure that your family members will not be burdened with expenses in your absence.

There are several reasons to purchase a life insurance policy. It is essential that your income is utilized efficiently. Life insurance policies help many to achieve that without causing a strain on your finances. Let's look at some of the reasons to purchase a suitable life insurance plan.

Premium Rates - An attractive feature of a life insurance policy is that they allow policyholders to secure coverage at affordable rates. Premiums are the predetermined amount that the insured individual pays to the insurer to keep their plan active. Different type of insurance have varying premium rates depending on several factors. The duration of your life insurance plan, the sum assured, premium payment frequency, and other such factors considerably impact the premium rates. The most affordable is term insurance, which offers coverage for an extended period at low rates.

Multiple Benefits - There are different types of life insurance policies available. Insurance providers recognize that each individual has varying requirements from their plan. For example, some people may look for investment opportunities along with life cover, while for some, retirement planning may be the primary motive. Insurance providers offer a variety of life insurance plans that satisfy such diverse needs. You can make the decision based on the nature of your income source, lifestyle, and long-term family requirements.

Tax Benefits - Premium are normally tax deductible. Additional tax benefits includes policy maturity and claim settlements. Death claims benefits paid to beneficiaries are creditor free too. 

Riders - Riders or Supplementary Benefits are add-ons to the existing life insurance policy that enhance the coverage to a great extent at an affordable rate. They enable policyholders to avail of additional benefits without investing in a standalone policy, which may cost more. Popular riders to life policy includes medical, accident, critical illness or cancer coverage.

Peace of Mind - A life insurance policy aims to take all your worries away regarding future expenses. There is nothing more significant than gifting the promise of support to your loved ones for when they need it the most. When you purchase a suitable life insurance plan, you can rest assured that they will never have to compromise on their life goals.

Medical Insurance Premium Increases

Insurance companies have been urged to stop increasing the premiums of medical insurance when consumers are still struggling to make ends meet which is very unjust and unfair. The Federation of Malaysian Consumer Association (Fomca) said this will impact the affordability of premiums for policyholders.

Fomca advocates for the deferment of repricing rollout by insurance companies which was initially intended to take effect in 2020. However, due to the severe economic disruption caused by the pandemic, the one-year postponement does not provide enough breathing space for policyholders who remain burdened by economic and employment uncertainties.

Hospital Occupancy Down - FOMCA claimed hospital occupancy has decreased tremendously due to the Covid-19, thus insurance companies will have a lesser pay out compared to previous years. This would result in a healthier loss/claims ratio as well as improved overall profitability for insurers.

Automatic Policy Loan - During these difficult time many policy holders would have taken loans against the insurance policies and now they are pressured to pay for the loans, premiums and now the premium hike. The Policy Loan and Automatic Premium Loan (APL) provided by the insurance company are charged exorbitant interest rate ranging from 7% - 8%. While banks are charging much lower interest rates and the fixed deposit return interest has been slashed down to 2-3%, but insurance companies seemed to exploit policyholders with high policy loan/APL interest rates.”

Many will eventually surrender or lapse their policies as the premiums are getting too hush to sustain their policies. It will be not prudent for policy holders to surrender or lapse at the expense of their savings and much needed financial protection especially medical coverage at the time of need.

Insurance Growth - Against the backdrop of these unprecedented economic circumstances affecting all Malaysians, the life insurance industry recording is a strong growth in Q3 2020 registering 44% increase in total new business premiums totalling RM2.92B as compared to Q2 2020, on the other hand the timing of repricing will have an adverse effect on the millions of policyholders.

Fomca strongly suggest that the repricing of the medical cards should be halted for at least the next couple of years. Fomca also urges Bank Negara Malaysia (BNM) to intervene immediately by protecting consumers by instructing the insurance companies to halt the premium hike and insist that there should not be any premium repricing for the next few years until we see better economic times.

Aviva Exits Vietnam

Financial services giant Aviva has agreed to sell the entire shareholding of its wholly owned life insurance business in Vietnam to Manulife for an undisclosed all-cash consideration.

The transaction is subject to certain closing conditions, including regulatory approval, and is expected to complete in the second half of 2021. The move follows Aviva’s sale of its Singapore business as the firm looks to exit non-core operations in both Asia and mainland Europe.

How To Smell A Bullshit In Office

A workplace is a cut-throat environment that requires one to play safe and smart. Important decisions have to be made every day, and for that it’s important to know what information to trust and what to discard. It’s easier to know if someone’s feeding you with BS in an informal environment than in a workplace. This is mainly because you won’t know a colleague or an employee as well as you would a friend. But in both cases, you should first understand the difference between a liar and one who bullshits their way through everything.

BS is perfectly crafted such that it’s not an outright lie. Its biggest asset is that it uses some facts to distract you from those that aren’t – it lies (pun unintended) exactly between facts and total fabrication, which is what makes it so tricky to spot. But with time, you will see that there are ample clues lying around that give away the bullshitter. Listed here are some ways in which you can get better at recognising those clues.

Become A Sceptic - The first thing you need to do is develop the habit of questioning everything that tends to be accepted. Question facts and motives, and refuse to accept anything at face value. Honing your bullshit detector requires you to be a well-practiced sceptic and an occasional cynic. Trust your gut-instinct when it tells you there’s something fishy, because most often, that is the first clue we tend to overlook.

Seek Evidence - There is no better way of detecting and calling out bullshit than by asking questions. BS tends to take the form of claims that are so well-crafted that they seem to be grounded in facts. The most effective step one can take is to ask, “How do you know what you know?” If a person beats around the bush without a straightforward answer or says something as airy as “It’s just my opinion”, then that is your clue.

Jargon - or technical terminology, unless relevant and sparse, is usually meant to impress and intimidate. It works like a decoy so that no one thinks to question the person. It usually implies that if a person can use big words, then they must surely know what they’re talking about. But in reality, it means otherwise; people tend to fill up gaps in their understanding with jargon, and the best way to find out is by politely asking them to explain their statements. If they still continue to beat around the bush, then you will have your answer. Sign up for our exclusive newsletters.

Tell-tale Signs - excessive confidence and a complete lack of it are both, as we all know, signs of a liar. A person getting by with BS, too, will show either of these signs. Inability to make eye-contact, fidgeting, and blurting things out lest someone questions them etc., are all the signs that should get your detector buzzing. Keep in mind, however, that these are merely clues that say something doesn’t smell quiet right. Question them to find out but don’t hold someone’s confidence or a lack thereof against them as that would be unfair.

An Overdose Of The Obvious - If a person is bullshitting, then their opinions will be entirely based on the obvious – they glamourise the obvious to look like important facts. This works for them because people agree with obvious statements, well, because they’re obvious. When you agree with something it takes on the role of a legit fact, and this is their hook that reels us in like helpless fish. Your clue to detecting bullshit is one obvious remark after another. It only takes recognition once, after which your detector for the ‘obvious’ will be set to precision.

Aligning With Self-interest - When someone bullshits, it goes without saying that they have an ulterior motive. It could be that they want get a preference over someone by creating an impression, or that they’re trying to get out of responsibility or a sticky situation. When you listen, and ask questions, you should be able to determine if their claims are in their self-interest, and if they’re only looking to gain something out of their “facts”.

Honing your bullshit detector also means working on your own confidence because the less confident you are, the more gullible you can be. BS feeds on gullibility but when you starve it and bring it under spotlight, you will have rid yourself (and the world) of trouble-makers.

Unethical Corporate behavior

No one likes a con artist. Over time – if not right away – customers know when they are being “had.” It can range from slightly exaggerated claims to blatant lies – and everything in between. This is unethical marketing.

On the other hand, ethical marketing is about truth and transparency. 94% of consumers are likely to be loyal to a brand that offers complete transparency. Furthermore, 73% of consumers say they would be willing to pay more for a product from such a brand.

Here are some of the more popular answers:

• 69 % said marketing that exaggerates or distorts the truth is unethical
• 64 % said marketing that targets and exploits vulnerable groups is unethical
• 62 % said marketing that conceals important information is unethical
• 58 % said marketing that is shaming is unethical
• 56 % said marketing that uses unrealistic or altered images is unethical
• 56 % said marketing that induces anxiety or fear is unethical
• 43 % said high pressure sales tactics are unethical

There were others, but you get the idea. On the front end, if consumers recognize that they are on the receiving end of these unethical practices, they will take their business elsewhere. On the back end, after purchasing a product, if the consumer experiences any of these unethical tactics, he or she will feel duped – and may share the story on social media. These customers may tell their friends. Regardless, the experience has been ruined. The chance of repeat business from this customer is questionable, if not doubtful or ruined completely.

Insincere - plenty of companies have hidden fees – banks, utility companies, cable and internet companies, and more. They advertise a price but when the customer receives the bill, there are, in addition to the price, taxes and other fees the customer doesn’t understand. And when these are explained, the customer often disagrees with them.

For example - a hotel charged a daily “resort fee” on its bill. Customer were not informed about this when they checked in. Maybe they missed it in the “fine print” when they made their reservation. This hotel claimed the resort fee included free use of the internet and access to the gym. Much more reasonably priced hotels didn’t charge a “resort fee” for those amenities.

Another example. A printer told his customer that the printing project would be done by a certain date. When he missed the delivery date, he said that if he had told the customer how long the project was actually going to take, the client would probably would have found someone else to print it. He was right. Most customer found a new printer for their next project.

Customer Confidence - part of a good customer experience is the confidence and trust the customer has in the company. Exaggerating or distorting the truth, even slightly, is a lie. Total transparency and honesty are expected – even assumed – by most. The good news is that the consumer has a way to fight back against unethical marketing. Today, the customer’s voice is louder than ever thanks to social media. Cross the customer, and the brand may find itself in a public relations nightmare.

There’s an old saying: buyer beware. Today’s version of that saying may be the reverse: company beware. If you cross your customers, they may walk. Even worse, they may talk. When they talk, it may be to more than just a few friends. It could be the next viral message that is seen by tens of thousands, or even millions. Transparency is key. Your reputation is your brand. Don’t destroy it with unethical marketing messages and customer experiences that skirt the line of good taste and ethics.

Covid Accelerates Underwriting

Interest in coverage has surged during the pandemic, but for many people, social distancing mandates took the life insurance medical exam off the table. As consumers look for quick, noninvasive ways to buy policies, insurers have turned to accelerated underwriting, a process that uses algorithms instead of exams to evaluate applicants.

While accelerated underwriting isn’t new, more than a third of life insurers have expanded it due to the pandemic, according to a study by the Society of Actuaries. And no-exam life insurance appeals to many people. Life insurance applicants want it to be fast and easy.

Accelerated underwriting can help you get life insurance quickly online, but there are caveats. What you gain in speed, you may lose in flexibility and price.

Big Data Changes Process - buying life insurance was a lengthy process involving bloodwork, urine samples and long waits for approval. It was probably the hardest or most difficult product to buy left in the modern economy.

This changed as the world became steeped in big data. Insurers now typically check your prescription drug history and data from the MIB Group, an information-sharing service for insurers. Companies may also consider non-medical data, such as your credit history, driving record and shopping habits. Algorithms then combine these data points to quickly determine eligibility and cost of coverage. This data can be tricky to dissect, but industry experts expect the trend to grow.

Accelerated Underwriting - Companies typically use accelerated underwriting techniques in two ways:

1. Fast Track Healthy People Application - many major carriers approve low-risk applicants based on big data and then require medical exams for everyone else. On average, it takes nine days for an insurer to reach a final decision using accelerated underwriting instead of the traditional 27, according to LIMRA. These policies are considered fully underwritten, even if you don’t take an exam.

2. Provide Instant Answers - Insurers use information from your application and big data algorithms to assess risk, and never require a medical exam. Coverage is not guaranteed, but the application process is fast and you often get an answer within minutes.

Accelerated underwriting is not to be confused with “simplified issue” life insurance, which considers the answers on your application but doesn’t tap into big data. These policies typically cost more and offer less coverage than standard policies because they rely on limited information.

Key Points To Consider When Choosing Policy - when shopping for life insurance, be sure to ask how the policy is priced. Both instant-answer and fully underwritten policies have pros and cons, and your specific needs will dictate what is right for you.

Before you apply, ask yourself these questions:

1: How Fast Do You Want Coverage - If speed is paramount, consider instant-answer policies that solely use big data and never require an exam. You will get an answer quickly, although the answer may be no. Nearly 85% of people who apply - using this application method - do through a mobile device.

2: How Much Do You Want To Pay - A policy with full medical underwriting is likely to be the cheapest option. If the insurer chooses to use accelerated underwriting to fast-track your application, you are not penalized; your price and product will likely be the same as if you had taken the exam.

Instant-answer policies may not offer rates in the cheapest brackets since the insurer doesn’t have the option of a medical exam to get more information. Some people will trade off that ability to get a fast decision at a reasonable price.

Do You Prefer Flexibility - Fully underwritten life insurance may offer more options, such as the ability to convert from term to permanent coverage. This is not always true of policies that rely solely on your application information and big data. When you at least have that medical exam as a possibility, you get a more robust product.

Woman Claimed US$1.5 Million Life Insurance Fraudulently

Pakistani authorities have launched an investigation after a woman fraudulently got herself declared dead and claimed two life insurance policies worth $1.5 million. Federal Investigating Agency (FIA), that is investigating the case, Seema Kharbay travelled to the US in 2008 and 2009, and bought two hefty life insurance policies in her name.

In 2011, she bribed some local government officials in Pakistan including a doctor and got a death certificate issued in her name. The document also showed that she had been buried. The certificate was used by her children to claim two life insurance policy payouts worth $1.5 million (approximately 23 crore Pakistani Rupees), the official said.

Kharbay, after being declared dead, travelled at least 10 times abroad from the Karachi International Airport, apparently under assumed identities with none of the airlines being able to detect the fraud.

The FIA human trafficking cell has now registered criminal cases against the woman, her son and daughter and some local government officials, including a doctor.

Managing Effectively In A pandemic

Several workplace surveys were conducted and the common miistakes manager made more frequently than others. The data reveals some obvious patterns that continue to exist even as we have shifted to remote work. Five most common themes -- the five biggest mistakes bosses make that disengage their employees. 

Micromanaging - Managers who dominate people, decisions, and processes and lead by fear makes this the No.1 mistake. Micromanaging ultimately derails your team's motivation and creativity. Since Covid-19, the lines between work and personal life no longer exist when teams work remotely. The 9-to-5 schedule has become extinct and flexibility to work at a time that's best for your employees should be the norm. The issue most managers run into with asynchronous work is keeping up with their teams' varying schedules while still hitting their productivity targets. 

Managing Through Power Or Ego - Hubris is the cause of much conflict and grief. As one survey respondent succinctly put it: "Intellectual arrogance is like a termite to some leaders and networks." When managers put themselves on a pedestal as the source for having all the answers and best ideas, and use it to wield power or control over their people, it destroys morale. We all have some level of selfishness residing within us, but too much focus on our own pride and ego in a team atmosphere influences our decisions, usually to a bad ending.


Failing To Listen - Listening has become a lost art. The lack of active and respectful listening, and two-way communication -- sending without receiving -- is a clear shortcoming in many managers. Perhaps it's because they're running in high gear trying to meet deadlines and hit their marks, and simply don't take the time to slow down and truly listen to what's going on around them. This can be risky because it could mean missing out on vital cues that impact performance, and even their own effectiveness and career growth. Managers who listen to and act on feedback show employees that they care about them. This sets the tone that if workers come to their managers with issues or concerns, they'll be heard, taken seriously, and addressed appropriately.

Disregarding Employees - One mistake that rose to the top points to the overarching theme of managers dismissing the value of their people. They either don't care, don't know how to care, or stopped caring. In essence, it's the leader who thinks anyone is replaceable and sees employees as "cogs on a wheel" rather than worthy colleagues to be treated like business partners in producing excellence. What do employees want in order to truly feel valued by their bosses? Two that stood out for me are:- Invest in employees with development and mentoring opportunities. Identify each person's unique skills and strengths, and use them where they are best suited for business outcomes.

Lack Of Trust - Since customer-facing and frontline employees are the ones most intimately acquainted with how things work in the trenches, it behooves managers to gain their trust by coming to them first for input, buy-in, advice, and ideas for strategy. This fosters a culture of trust, where followers feel safe enough to question, contribute ideas, and share concerns that have value and can help resolve problems.

Finally, let's take into account that managers are people too and, therefore, should not be demonized. The majority have good intentions and should be treated with respect and empowered with the tools and development they need to succeed.

Life Insurance During Your Lifetime

Life insurance coverage plays different role during key moments of your adult life. You may not always need it, or need it the same way, but life insurance can help during all life's stages.

During Age 20s And 30s - This is the period of time when you are adjusting to life in the "real world," so it's understandable if life insurance isn't a top priority. But appreciating how it works can help you avoid making crucial errors that could affect you down the road.

65% of people between the ages of 18 and 29 did not have life insurance policies. Meanwhile, Americans now carry US$1.6 trillion worth of student loan debt. Even though the majority of student loans (92%) are federal loans — meaning that debt is forgiven should you pass away — there is still US$131.8 billion in private loan debt in this country. Add to this the fact that the country's outstanding credit card debt and other revolving debt have risen almost 20% in the past decade, according to a January survey from CompareCards. Those debts are not forgiven, and a life insurance policy can protect you from passing that debt burden on to a loved one.

During Age 40s And 50s - By this point, you have likely earned more assets, which can include a mortgage, lingering or perhaps even increasing credit card debt, and dependents in the form of children and aging parents in retirement. You want to make sure your family is taken care of on both ends of the spectrum.

Life insurance can and should evolve as your needs change. A new family might consider short-term coverage to help build savings during that early childhood period. If you are interested in more long-term estate planning or if you anticipate ongoing child care needs — in the case of special needs, for example — you may find that permanent coverage best suits your situation.

In general, this is the period where you begin to take stock of your family goals and plans. A common question is whether both parents need life insurance. If one parent plans to stay home and care for the child or children full time, it might be tempting to assume that only the primary breadwinner would need coverage. But consider the services the stay-at-home parent provides. In the case of their untimely death, would the surviving parent need to pay to replace those valuable child care services? Insurance could also help the surviving parent cover costs and expenses while dealing with an upended life.

During Age 60s And Beyond - At this point you may be considering retirement. Your children (if you decided to have a family) may be grown and starting their own families, and you may consider the need for life insurance coverage waning.

During this stage of life, the focus should be shifting toward securing your financial legacy. Life insurance can be used to help pay off any remaining debts to ensure they aren't passed on to your loved ones. A will cannot be processed until the debt is paid, and if those left behind are unable to cover the owed money, it is taken out of the estate. In some cases, a policy payout itself could become an inheritance for a child or grandchild should there be any uncertainty about the financial strength of your estate.

When you’re 60 or older and seeking the best coverage option, it's important to ask if life insurance is even a necessary purchase. If you don't have loved ones who are financially dependent on you and you have savings set up for burial expenses, then it's probably unnecessary. If you still have dependents or want to ensure funds for end-of-life planning, term life insurance could also be a good fit to put coverage in place for that financially vulnerable period.

Covis Offers Insurer Digital Opportunities

With millions of infections and hundreds-of-thousands of American lives lost from COVID-19, vast numbers of people are paying greater attention to the thought of their own mortality and what would happen to their loved ones if they should pass away. While the increased awareness is hopefully spurring people to protect themselves and one another by isolating and wearing masks, it’s also leading Americans to investigate and purchase life and retirement products in surging numbers.

Increased Awareness - The pandemic has forced life insurance organizations to take a good, hard look at their digital capabilities. COVID-19 dramatically increased consumer demand for life and retirement products. Approximately, 67 percent of Americans say the pandemic has been a wake-up call for them to examine their finances – and to look into life insurance.

If you look from a pure market perspective, many more people started to face the realities and began thinking about both their mortality and long term income needs. Consumer search traffic for life insurance specifically, with search volumes in the first few months of 2020 up to 50 percent higher. Conversion rates also remain strong.

Consumer awareness of the need for these products has been elevated, resulting in an increased need for them to purchase these products. More than half of adult Americans reported owning a life insurance policy, a drop of 9 percentage points from 2010. But it is projected that the intent to purchase life insurance will be at an all-time high in the following 12 months.

Online insurance marketplace has seen life policy sales grow about 30 percent due to the pandemic. Insurer attributed this activity to the sort of “panic buying” that happened after the 9/11 attacks. “I better get it now because I might get COVID and be at risk.

Social Distancing - The need for social distancing and limiting in-person interactions has made it essential for insurers to have digital interaction and sales process capabilities. But unfortunately, many insurance companies didn’t have a way to meet the increasing demand coupled with the need to sell policies remotely, and they missed out on that opportunity. As a result, many carriers have reported slower revenue numbers and others have announced employee layoffs. Digitallycapable insurance companies, however, are selling more policies and gaining market share.

Having The Right Capabilities - The pandemic has made it essential for large legacy insurers to come up with a solid strategy around platform modernization, platform simplification, simplification of their business architecture and being able to engage with consumers on their preferred channels. These must include an array of options, including potentially a direct model, and their existing distribution model, which can be through their captive or independent distributors or insurance marketing organizations (IMOs). All these distribution models are both valid and necessary. But insurers can’t ignore the direct model any longer. 

Direct Is Not Always A Replacement for other distribution channels but can be an extension with its own operating models and products. Investment into the direct model is an investment into future generations. The direct model isn’t completely hands-off but includes capabilities for when customers might require digital or even human guidance or advice. There are times when consumers still may need to talk to someone. Even if they’ve done 80 percent of the research, they still might need a human to help them cross the mental or technology barriers or to understand some of the complex product features. Offering human interaction is a must.

Insurers need to approach the problem back to front and front to back. On the front-end, they need more digital capabilities, and they must have better engagement tools and capabilities so they can not only reach out to customers but also stay in touch regularly. On the back-end, they need better digitally-enabled core platforms and a robust back-end ecosystem. This ecosystem may include many partners that also take advantage of all the innovation happening in the marketplace with the opportunity to leverage industry data, APIs and micro-services within their architecture to integrate capabilities to enable new experiences and new products as the needs of customers continue to evolve.

Opportunity In Chaos - Life carriers need to reposition themselves to take advantage of the opportunities the pandemic presents. When the pandemic hit, some organizations that ran large call centers and didn’t have remote call center capabilities found themselves in a bad position, particularly those that operate near larger cities, and especially on the coastal cities. If an organization without these remote call center capabilities operated in New York or New Jersey, for instance, it was not operational or productive for the customer when they needed them the most. And if the carrier lacked remote technology capabilities so reps could work from anywhere, it was severely limited.

Going Digital - Many companies run large mailrooms and print shops because the industry still uses paper-based communications. These organizations had to work through enormous logistical and safety challenges when the shelter-in-place directives took effect. In today’s day and age, eDelivery and digital applications are real. Having the ability to digitally accept an application or issue a policy in real-time and being able to eDeliver a policy as well as deliver correspondence and create self-service for consumers, and in some cases, for the distributor as well, since they’re also working from home and do want self-service capabilities as well.

Companies that were prepared with either leveraging technology partners with those capabilities or investing in those technologies themselves have been not only able to meet the pandemic’s challenges, but are equipping them to grow their business in many ways, even beyond the pandemic.

Malaysia Life Insurance - 3rd Quarter 2020 Growth

Malaysia life insurance industry experienced a strong third quarter (3Q20) with new business premiums growing by 44% to RM2.92 billion from RM2.02 billion in premiums recorded in 2Q20. 

Life Insurance Association of Malaysia (LIAM) stated that the strong performance seen in 3Q20 was mainly due to improvement in the investment-linked business, growing by some 94% from RM737.72 million in 2Q20 to RM1.43 billion in 3Q20. The reopening of the economy after the Movement Control Order (MCO) and Recovery MCO (RMCO) fuelled the growth as the government put in efforts to revitalise the economy. In addition, the pandemic increased awareness among Malaysians on the importance of financial protection as a safety net in facing uncertainties in life.

Individual new business premiums saw an increase of 32% to RM733.75 million for 3Q20 compared to RM556.01 million in the previous quarter this year. Group new business premiums recorded an increase of 2% to RM750.51 million from RM732.22 million in 2Q20.

The total premium in 2Q20 from new business fell 37% to RM2.03 billion compared to RM3.22 billion in 1Q20. The drop was mainly in the sales of group policies and investment-linked policies which contracted by 56% and 25% respectively.

2Q20 was the most challenging so far as the regulations imposed during MCO and RMCO prevented agents from conducting face-to-face selling for about three months.

The industry sold a total of 340,061 new policies in 3Q20, recording a growth of 39% from 2Q20, including a total of 165,329 new investment-linked policies and 169,814 individual policies.

The industry experienced a 23% drop in investment-linked policies and group policies sold in 2Q20 compared to 1Q20.

Investment-linked policies went from 142,750 to 109,342, while the number of group policies fell from 6,215 to 4,812. Individual policies registered a double-digit growth of 16% or from 112,075 to 130,326 policy units, reflecting the demand in individual policies during the pandemic.

The industry registered a modest growth of 6.5% in total premiums year-on-year, where total premiums for investment-linked and individual policies in 3Q20 were higher by 20.7% and 1.2% respectively compared to 3Q19.

A moderate growth of 3.8% in the number of new policies was recorded for 3Q20 compared to the same quarter last year, while individual new policies increased by 25.6% and group new policies increased by 4.7% compared to the same period in 2019.