Courage-destroying Leadership Behaviors

Seven of the most common courage-destroying leadership behaviors:

Micromanagement - When we micromanage the people we lead, we tell ourselves that we’re helping them stay on track and manage challenging tasks. In reality, we’re creating a recipe for frustrated high achievers who feel a lack of trust and who will switch teams as soon as possible. The people left are those who wait to be told to do every little thing, afraid of acting because they feel you expect perfection.

Reacting with anger and judgment - We tell ourselves, “I’m passionate about this work, and anger or judgment is the appropriate response to this situation. We have to hold people accountable.” But what we get is employees who fear setting you off, so they withhold telling you about their mistakes or offering you the critical feedback you need for making good decisions.

Caring only about the deliverables and not about the team as people - When we do this, we tell ourselves, “I am driven to do great work, and I get great results. I hope my team will be inspired by my hard work.” But instead, your staff feel you don’t care about them, so they don’t care about you or your goals. They believe it’s more important to appear productive than focus on doing the right things.

Not reinforcing positive performance - When we fail to reinforce positive performance, we tell ourselves, “They know what their strengths are. I don’t need to reinforce that for them. Plus, we should be intrinsically motivated.” What do we get? Frustrated employees who feel like their efforts and strengths go unrecognized and lose the motivation to try harder or help their teammates. They may also resent others whose strengths are recognized.

Withholding negative feedback - When we withhold negative feedback from our teammates, we tell ourselves, “I don’t have time for a feedback conversation, so I’ll just fix it for them and wait until their performance review to bring this up.” Your attitude and body language tell them you’re not totally pleased, but they can’t know for sure what they did wrong. They wish you believed in them enough to invest in their learning and growth, and think you’re too passive-aggressive to say what you actually think and have the necessary hard conversations.

Ignoring their suggestions - Your rationale might be, “I don’t have time to consider their suggestion and figure out whether or how it will work. It’s on me to keep folks focused on priorities.” But the danger is, employees who feel ignored will either seek out other ways of pushing their idea forward (e.g., having someone else suggest it, going over your head) or become disengaged from the work.

Not dealing with an underperforming or toxic teammate - We tell ourselves, “That team member is a little hard to deal with, but they have strengths we need. Plus, I’ve talked to them, and they are making small improvements. It’s not that bad. I wish the team wouldn’t take it so personally.” But employees think less of you as a leader for not dealing with the employee who is bringing down the whole team, and they feel hurt that you don’t believe them when they tell you how bad the situation is. They may overreact or take seemingly small transgressions personally because, to them, that small transgression is part of a much larger systemic issue.

As leaders, we can either destroy our teams’ confidence and courage, or we can supercharge it.

4 Common Mistakes

Purchasing life insurance is a crucial step in protecting loved ones and building a secure financial life. A life insurance policy ensures an untimely death isn't financially devastating, leading to a major decline in quality of life when the deceased person no longer brings income or services to the household.

Unfortunately, many people make mistakes when buying life insurance. These errors could result in policies that cost more or don't provide the right protection. No one wants to make an error when purchasing one of the most important financial products of their lives, so it's important to steer clear of these four common mistakes.

Buying the wrong type of policy - There are different kinds of life insurance. Buying the wrong kind could leave consumers paying more or leave them without the protection they need.

Term life insurance is the best type of protection for most people. It's more affordable than whole life coverage and is in effect for a limited time such as 20 or 30 years -- which is all most people need coverage for since typically they'll eventually stop working and earning income or stop providing services to their family such as taking care of minor children.

Whole life, on the other hand, is more expensive. But it has an investment component and remains in effect forever as long as premiums are paid. For those who have a lifetime need for insurance, such as a parent of a disabled child, paying more for whole life coverage may be well worth it.

Not buying the right amount of coverage - When buying life insurance, consumers must choose how much coverage they want. It's important to decide carefully on the amount of the death benefit that will be paid to surviving beneficiaries.

Buying too much life insurance could mean paying more than is necessary for unneeded protection. Life insurance isn't meant to make survivors rich but rather to ensure a loved one's death doesn't cause financial hardship.

Buying too little coverage, on the other hand, could be even worse as it could leave surviving family members struggling. Generally, it's important to take into account debts to be paid off, income to be replaced, the cost of a mortgage, and the educational needs of children when deciding on coverage. This is sometimes referred to as the DIME formula, which stands for debt, income, mortgage, and education.

Overpaying for unnecessary riders - Riders are add-ons to insurance policies. For example, it's possible to add a return-of-premium rider that allows premiums to be returned at the end of a term life policy if a death benefit doesn't pay out. Or it's possible to add coverage for minor children to some policies.

In many cases, these add-ons are expensive and unnecessary. Before adding any additional coverage beyond a basic death benefit, do the math to make sure it's really worth paying for the added protection.

Not shopping around for insurance quotes - Life insurance coverage varies from one insurer to another. There are differences in terms of both coverage and costs.

Anyone who is buying insurance should make sure to get different quotes from several providers to ensure they get the right protection for the best price. Not doing so could lead to overpaying or missing out on more comprehensive protection.

By avoiding these four mistakes, consumers can make sure they get the life insurance they need without overpaying so they can protect loved ones without draining their budget.

Agents Leaving The Profession

LIAM and its 16 member companies are working together to strengthen the professionalism of its agency force and upskill them through continuous training and professional programs to accelerate growth in 2022.

In line with its efforts to raise the standard of its agency workforce, the study consists of an online survey of 5,000 respondents, 250 telephone interviews and some focus group sessions. The survey runs for several weeks from 24 January to 15 February.

The study aims to establish the reasons for agents leaving the profession, the relationship between product knowledge and the retention of agents and to establish whether demographics, working experience, support at work and training and development have influence on retention of agents. The study consists of an online survey of 5,000 respondents, 250 telephone interviews and some focus group sessions. The survey runs for several weeks from 24 January to 15 February.

LIAM is encouraged by the positive development in the number of agents recruited by the life insurance industry during the pandemic. As of 31 December 2021, the number of agents had increased to 88,068 agents from 82,042 agents in 2020.

The industry works very closely with the regulator, Bank Negara Malaysia (BNM) and other stakeholders including the Malaysian Insurance Institute (MII), Malaysian Financial Planning Council (MFPC) and National Association of Malaysian Life Insurance and Family Takaful Advisors (NAMLIFA) to review the programs for the development and up-skilling of agents.

Samsung Life Insurance - Penalized

The Financial Services Commission (FSC) has slapped a KRW155 million (SG$170,000) fine and other restrictions on Samsung Life Insurance for unfairly rejecting a subset of cancer insurance claims.

According to a report by Business Korea, Samsung Life rejected a number of claims for cancer hospitalization insurance, arguing that the patients’ admission to a nursing hospital did not fall under the “direct cancer treatment” covered by its policy.

In December 2020, the Financial Supervisory Service (FSS) issued a warning to the insurer for refusing to pay out cancer insurance claims to patients who received treatment at a nursing hospital.

Both FSS and FSC said that the insurer had violated the Insurance Business Act in doing so.
Aside from a fine, the FSC's ruling will prohibit Samsung Life from entering new businesses that require financial regulatory approval for a period of one-year period. According to the report, this will impede Samsung Life’s digitalization strategy.

Two affiliates of the insurer, Samsung Card and Samsung Asset Management, will also be subject to the same restrictions. Earlier, the FSC suspended its review of a MyData business license application from Samsung Card due to questions regarding the eligibility of its major shareholder.

Protecting Your Children's Future

Tasya Aprilia Agatha lost her father to COVID-19. It left the family struggling to survive. As a delivery driver and sole breadwinner, he used to earn just enough for the family every month. With his death, an alternative source of income was needed, and Tasya had to step up. Six days a week, she wakes at 4am to help her mother run a makeshift food stall, while juggling school and working in a cafe. She gets about four hours’ sleep a day.

The high school senior in Kediri city in East Java dreams of going to university and becoming a businesswoman. But with her punishing schedule, her school grades have slipped. Many other students in Indonesia have dropped out amid the pandemic.

Dropped Out - About 2 per cent of children aged five to 18 who had been enrolled in school up to March 2020 were no longer enrolled in November 2020. That is about 1.3 million students. The most cited reason for dropping out was lack of money to pay school fees.

Even for those in school, the long periods of lockdown posed a challenge when classes had to move online. Most of the parents — who are in the medium- and low-income brackets — may also be unable to provide what the students need most: Adequate internet connection.

Although more schools have reopened, catching up on what students have missed is another challenge. Only 30 per cent of Indonesian children achieved minimum scores in reading on the Program for International Student Assessment before the pandemic.

School closures precipitated by the pandemic could result in a loss of between 25 and 35 points, on average, on students’ reading scores. Increased drop-out rate from school closures puts children at risk of child marriage and exploitative activities. Child marriage and child labour are “on the rise” owing to the unavoidable “economic pressure” from the pandemic.

But once the children drop out, they are left with no option but to join the workforce. After earning money, some do not turn back.

Guardians - The odds are stacked even higher against children who are left with no one to care for them. An estimated 34,000 Indonesian children have lost one or both parents to COVID-19. To protect orphans, the Indonesian government has legislation in place when it comes to finding substitute carers, with immediate family members called upon first.

But even if a suitable carer is found, financial help is also often necessary.

Martin Shkreli & Daraprim

Disgraced pharmaceutical executive Martin Shkreli must pay $64.6 million and will be barred from the pharmaceutical industry for life for violating antitrust law. Mr. Shkreli raised the price of Daraprim, which treats a lifeMartin -threatening parasitic infection, to astronomical levels. In 2015, he acquired the decades-old drug and raised its price from $13.50 to $750 per tablet. He became known as "pharma bro" for his unapologetic demeanor when facing outcry from lawmakers and patient advocates over the price increase.

In her ruling, Judge Denise Cote of the U.S. District Court for the Southern District of New York said Mr. Shkreli tried to monopolize Daraprim via anticompetitive tactics. She said he and his former company, now known as Vyera Pharmaceuticals, generated $64.6 million in excess profits from Daraprim sales through the tactics and ordered him to repay that amount.

The ruling said Vyera changed the drug's distribution and hindered competition from generic drugmakers. It said the exorbitantly high price forced patients "to forego this medically necessary treatment."

The lawsuit was filed by the Federal Trade Commission and the attorneys general of seven states. Mr. Shkreli is serving a seven-year prison sentence for defrauding investors during his work managing two hedge funds. The sentence is unrelated to his drug pricing scandal, and he is expected to be released later in 2022.

Insurer Reposition Against Covid Pandemic

A coronavirus pandemic which lasts five years, another pandemic in a decade, and ever more transmissible variants are among the scenarios life insurers are predicting after COVID-19 claims jumped more than expected in 2021.

The global life insurance industry was hit with reported claims due to COVID-19 of $5.5 billion in the first nine months of 2021 versus $3.5 billion for the whole of 2020, while the industry had expected lower payouts due to the rollout of vaccines.

The increase in claims was largely down to the emergence of the Delta variant, twice as transmissible, and more likely to cause hospitalization than the original coronavirus strain. Claims rose most in the United States, India and South Africa due to the more lethal variants and a rise in fatalities or illness among younger and unvaccinated groups.

Aegon , which does two-thirds of its business in the United States, said its claims in the Americas in the third quarter were $111 million, up from $31 million a year earlier. MetLife and Prudential Financial said life insurance claims rose. South Africa's Old Mutual used up more of its pandemic provisions to pay claims and reinsurer Munich Re raised its 2021 estimate of COVID-19 life and health claims to 600 million euros from 400 million.

The long-term nature of life insurance products – often lasting 20 years or more – means premiums are not yet capturing the risk that deaths or long-term illness from COVID-19 will likely remain higher than previously estimated. Competition in the industry is also keeping a lid on premiums.

Actuaries say rising claims will be eating into the capital which insurers set aside to ensure solvency. In the initial "shock" period of the pandemic in 2020, the insured U.S. population suffered 12% more deaths than average.

The impact for insurers in 2020 was more muted because deaths were mainly among older people who typically do not take out life insurance.

CRYSTAL BALL-GAZING - As the pandemic continues to surprise with the Omicron variant now becoming dominant, insurers, reinsurers and specialist risk modelling firms are looking to the future. Many are factoring in periodic lockdowns around the world and is also considering factoring in more uncertainty over whether governments will continue to impose restrictions to keep transmission rates low, and over individuals' willingness to obey them.

Risk modelling firm RMS said its updated COVID-19 projection model allowed for variants, such as Omicron, which show elements of vaccine escape, as well as for variants which might evade vaccines.

Reinsurer Swiss Re said its pandemic model takes more than 20,000 different scenarios into account. It has been updating its risk model regularly with the latest data on testing, vaccination, infection, hospitalization and fatality rates.

HOW LONG, WHAT'S NEXT? - With the emergence of the even more transmissible Omicron, COVID-19 vaccine manufacturer Pfizer has said it does not expect the pandemic to subside to an endemic state globally until 2024. 

The pandemic, caused by a virus first identified in China in December 2019, could last five years. Excess deaths could continue as the virus becomes endemic, similar to influenza which causes many deaths each year despite vaccines. More deaths or long-term illnesses will require insurers to set aside more reserves to pay claims, and may force them to raise premiums.

Insurance risk experts also say the opportunities for transmission between humans and animals, high levels of global travel, increased urbanization and climate change impacts such as deforestation and disease-carrying mosquitoes mean pandemics could become more frequent.

A new coronavirus outbreak is indeed likely in the near future -- within the next 10 years, referring to the severe acute respiratory syndrome (SARS) and Middle East respiratory syndrome (MERS) outbreaks in the last two decades as early warnings.

LIC Of India - IPO

Indian officials are taking unprecedented steps — including adjusting capital markets rules, sending text messages and publishing newspaper ads — in an effort to ensure the record-setting initial public offering (IPO) of Life Insurance Corp of India is a success.

The IPO could raise between 400 billion rupees ($5.4 billion) and 1 trillion rupees ($13.5 billion) this quarter. Indian authorities plan to amend their rules on foreign direct investment to make it easier to bring in investors from outside the country for the Life Insurance Corp. of India IPO. Because the insurer is a special entity created by an act of Parliament, foreign investors aren’t allowed.

The Securities and Exchange Board of India is planning to recruit 120 senior executives across its legal, information technology, research and general and official language departments — totaling about 14% of its employees — to get involved with the Life Insurance Corp. of India IPO.

Last week, Indian B2B eCommerce platform udaan said it’s planning to launch an IPO in 18 months after closing a $250 million funding round that came through a $200 million convertible note. The company had a valuation of $3.1 billion during its $280 million fundraising round in January 2021 and will set a new valuation either during its pre-IPO quests for fresh capital or at the time of the IPO in the middle of 2023.

Insurance Fraud Rise - Singapore

Insurance fraud is on the rise here, and in 2020, the Government received more than three times the number of reports of such claims compared with in 2018. Over the past three years, reports of insurance fraud increased to 71 in 2020 from 20 in 2018.

This sharp increase is due to a single case where 22 reports were lodged against an Indonesian national who submitted multiple fraudulent medical insurance claims. Police work with partner agencies and industry stakeholders such as the General Insurance Association of Singapore (GIA) to investigate and combat insurance fraud. The police's Specialized Fraud Insurance Branch is part of the Insurance Fraud Committee chaired by GIA, which shares information, crime trends and best practices on detecting and preventing insurance fraud.

Fraud Characteristic - The police also provide information on possible characteristics of fraudulent insurance claims to refine GIA's Fraud Management System, which uses data analytics to enhance the detection and analysis of potential fraudulent and duplicate claims.

The Monetary Authority of Singapore (MAS) expects all insurers and insurance intermediaries to have in place a robust fraud risk management framework commensurate with the size and complexity of their operations. MAS carries out regular reviews and on-site inspections of insurers to identify control gaps, including areas that may increase susceptibility to fraud. Insurers are required to promptly put in place remedial actions to address these findings.

Those who file - or collude with fraudsters to file - fraudulent insurance claims can be charged with cheating-related offences which carry maximum jail terms of between three and 10 years.

Target Insurance Company Closed By Regulator

Hong Kong’s Insurance Authority (IA) has appointed managers to take control of Target Insurance Company, in a bid to maintain market stability and protect policyholders’ interests. The regulator assigned Derek Lai and Forrest Kam of Deloitte Touche Tohmatsu as joint and several managers of Target, which last week notified more than 8,000 of its taxi operator clients that their coverage will be terminated, and the premiums refunded.

The insurer, which is the largest motor insurer in Hong Kong, said it will cease covering the taxis due to huge losses caused by the suspension of its foreign currency investments.

“In view of the persistently unsatisfactory functioning and solvency position of Target, the IA has earlier imposed a series of additional regulatory requirements, including requiring the company to place a statutory deposit under the name of the IA and restricting the use and allocation of its assets,” a spokesperson for the IA said.

Breached Statutory Requirements - The regulator said it discovered that the insurer may have breached statutory requirements under the Insurance Ordinance (Cap. 41), as well as serious deficiencies in Target’s corporate governance. This led the IA to “exercise its power to appoint managers to take control of the affairs and assets of the company to ensure its normal operation for maintaining market stability and protecting the interests of policy holders.”

The appointed managers will conduct a detailed assessment of Target’s financial situation and report the findings to the IA. To help the taxis that abruptly lost their insurance coverage, the IA worked with four insurers – Bank of China Group Insurance, China Pacific Insurance (HK), China Taiping Insurance (HK) and CMB Wing Lung Insurance – to take in the policies of the affected clients.

According to the IA, motor insurance makes up around 80% of Target’s business, including around 10,000 taxis. The rest of its business is mainly employees’ compensation insurance. Target makes up around 1.43% of the Hong Kong market’s direct general insurance business.

Chairman Of China Life Insurance Under Scrutiny

China’s top anti-graft watchdog said it placed the chairman of China Life Insurance Co. Ltd. - one of the country’s largest insurers, under investigation. Wang Bin is “suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and investigation,” the China Central Commission for Discipline Inspection said in a statement, without disclosing more details.

China Life said it would cooperate with investigations and supports Beijing’s actions to cleanse the country’s political and financial systems. Wang previously held posts in China’s central bank and the Agricultural Development Bank of China before heading the insurance group. He is the first high-level official in China’s finance sector embroiled in an anti-corruption campaign this year.

Beijing’s anti-graft crackdown has taken down more than 20 financial officials so far as authorities step up scrutiny over the nation’s $54 trillion financial system.

AsabriGate - Former Heads Sentenced

An Indonesian court has sentenced two former heads of state insurer Asabri to 20 years in jail for graft after blaming them for causing 22.7 trillion rupiah ($1.58 billion) of losses to the state, the Antara news agency reported.

A panel of judges on Tuesday also ordered Adam Rachmat Damiri and Sonny Widjaja, who were chief executives at Asabri between 2012 and 2020, to repay the state a total of 82.47 billion rupiah and pay fines. Prosecutors at the special corruption court in Jakarta had sought a 10-year jail term and fines, accusing the two of being involved in high risk investment decisions that turned sour.

Priyagus Widodo, Sonny's lawyer, claimed the sentence was too heavy and said his client was considering an appeal. Adam's legal counsel could not immediately be reached for comment.

Asabri is an insurance company that serves members of the military and police officers, as well as civil servants in the defence ministry. The Asabri case is one of the most high profile in a crackdown on investment frauds in insurance firms, following defaults by another Indonesian state insurer Jiwasraya.

Some of Jiwasraya's executives and business people found to have influenced its investments have been sentenced to life in prison. A businessman, who was given a life sentence in the Jiwasraya case, is also facing charges that carry a potential death penalty in the Asabri case.

Avoid Mis-selling - Life Insurance

When a life insurance policy is mis-sold - it is a major setback for customers who have purchased a policy based on false or partial information. Being sold an unsuitable policy hence leads to grievances and post-purchase dissonance. To ensure greater transparency and lower instances of mis-selling, several regulators have directed insurers to mandatorily provide clear policy-related communication to prospective customers. For instance, a mandatory directive issued by the regulator has instructed insurers to issue benefit illustrations based on two different assumed rates of return in a prescribed format. While the regulator plays an active role in safeguarding the interest of policyholders, here are four guide rails to help you make an informed decision:

Over Enthusiastic Seller - It is often an over-enthusiastic seller who exaggerates features or promises attractive returns to pique customers’ interest in purchasing a life insurance policy. If the promise sounds too good to be true, it is advisable to get a second opinion. One can also undertake online research to double-check on the promised benefits. It is always important to fully understand the give-get proposition before committing to a life insurance policy.

Bundled & Complicated - Be cautious if at any time a seller tries to bundles life insurance with fixed deposits, locker, mutual funds or other financial instruments. The fundamental purpose of life insurance products is different, as they serve different needs and should not be bundled.

Meet Your Needs - Life insurance covers varied types of product offerings, and hence one should be very clear of their future goals before investing in a life insurance instrument. It is better to research and gather information before you meet a seller to have an informed discussion, and choose the right life insurance that is mapped to your future needs.

Read Your Policy - The sum assured, premiums, policy terms and conditions and payout terms are crucial aspects of a life insurance policy. Buyers should not decide basis any exaggerate information that might have been provided to make the policy attractive. It is advisable to read the policy document carefully before making a purchase.

Preventing Mis-selling:-

• Ask the seller to illustrate all crucial aspects of the policy. Official illustrations from the company are best suited for such situations.

• Often customers skip the terms and conditions, but it is the most critical component when purchasing a policy. Hence, it is recommended to fill your own forms and thoroughly check the details before signing the policy.

• Do check if your policy requires a full-body medical test or intimation of any prior medical history. If the seller fails to share this information with the insurer, it can negatively impact the future claim process for you/nominee (claimant).

• Make sure to read the policy details and seek clarity by asking relevant questions that are not entirely comprehensible.

Taking Appropriate Rsolutions:-

• Reach out to your insurer who can help with quick query resolution

• In case of any grievance, you can connect with the insurer via varied customer service portals including website, email, or WhatsApp

• You can also swiftly access policy through multiple DIY modules to easily modify details and file quick claims

Being mis-sold a life insurance policy can be a strenuous situation. With thorough measures from insurers, Regulators informed decisions from customers, mis-selling related grievances can be reduced. Upon realizing that you have been mis-sold a product, do immediately gather your documents and contact your life insurer independently to ensure the correct resolution to your concerns.

Spiked In Insurance Death Claim Unseen In History

Indianapolis-based insurance company OneAmerica said the death rate is up a stunning 40% from pre-pandemic levels among working-age people. The highest death rates as seen in the history of this business – not just at OneAmerica. The data is consistent across every player in that business.

OneAmerica is a $100 billion insurance company that has had its headquarters in Indianapolis since 1877. The company has approximately 2,400 employees and sells life insurance, including group life insurance to employers in the state.

Age Between 18 - 64 - The increase in deaths represents “huge numbers,” and that’s it’s not elderly people who are dying, but “primarily working-age people 18 to 64” who are the employees of companies that have group life insurance plans through OneAmerica. This happens in third quarter and forecasted to continue into fourth quarter, is that death rates are up 40% over what they were pre-pandemic.

A one-in-200-year catastrophe would be 10% increase over pre-pandemic. A 40% is just unheard of. Most of the claims for deaths being filed are not classified as COVID-19 deaths.

The data is showing to us is that the deaths that are being reported as COVID deaths greatly understate the actual death losses among working-age people from the pandemic. It may not all be COVID on their death certificate, but deaths are up just huge, huge numbers.

Disability Claim - At the same time, the company is seeing an “uptick” in disability claims, saying at first it was short-term disability claims, and now the increase is in long-term disability claims. OneAmerica expects the cost of this are going to be well over $100 million. The costs will be passed on to employers purchasing group life insurance policies, who will have to pay higher premiums.

CDC Weekly Death Counts - The Data reflects the information on death certificates and so have a lag of up to eight weeks or longer, show that for the week ending Nov. 6, there were far fewer deaths from COVID-19 in Indiana compared to a year ago – 195 verses 336 – but more deaths from other causes – 1,350 versus 1,319.

These deaths were for people of all ages, however, while the information referenced by Davison was for working-age people who are employees of businesses with group life insurance policies.

Spiked In Hospitalization - Indiana Hospital Association, said that hospitals across the state are being flooded with patients “with many different conditions. Unfortunately, the average Hoosiers’ health has declined during the pandemic.

No breakdown showing why so many people in the state are being hospitalized – for what conditions or ailments. However the extraordinarily high death rate quoted by One America matched what hospitals in the state are seeing.

The number of hospitalizations in the state is now higher than before the COVID-19 vaccine was introduced a year ago, and in fact is higher than it’s been in the past five years. Just 8.9% of ICU beds are available at hospitals in the state, a low for the year, and lower than at any time during the pandemic. But the majority of ICU beds are not taken up by COVID-19 patients – just 37% are, while 54% of the ICU beds are being occupied by people with other illnesses or conditions.

The state's online dashboard shows that the moving average of daily deaths from COVID-19 is less than half of what it was a year ago. At the pandemic's peak a year ago, 125 people died on one day – on Dec. 29, 2020. In the last three months, the highest number of deaths in one day was 58, on Dec. 13.

Go Digit Told To Stop

The Insurance Regulatory and Development Authority of India (Irdai) asked Go Digit General Insurance (Go Digit) to discontinue a product offering life insurance benefits in violation of regulatory norms. Irdai issued a show cause notice (SCN) was issued in August 2021 as deficiencies were observed in complying with the provisions of Insurance Act.

The regulator said no insurer shall carry on any class of insurance business in India unless it has obtained a certificate of registration for a particular class of insurance business. The matter relates to modification in the Digit Group Total Protect Policy by the insurer in July this year, under which one additional section by name of 'Major Illness Plus Cover' was incorporated in the policy.

Modified Product - The regulator said upon examination of the modified version of the product, it was found that it offered two benefits in the event of triggering of the covered contingent event. One of the benefits relates to payment of sum insured on diagnosis and/or surgical procedure of major illness. The product offers insurance coverage to 82 major illnesses.

Another relates to payment of an additional benefit amount in case the policyholder does not survive till the end of the policy period owing to the same major illness and/or surgical procedure for which the claim was admitted. Irdai said providing additional benefit amount to the nominees/legal heir of the policyholder in case of non-survival falls within the definition of life insurance business.

Appeal - Following further hearing on the matter and personal hearing Go Digit contended that the benefit offered under the proposed clause does not fall under life insurance business but under miscellaneous insurance business defined under Insurance Act, 1938.

The insurer had also requested the Authority to withdraw the communication and SCN issued in the matter. The Authority said the request of the insurer was not acceptable and said providing the death benefit cover or the assurance of payment of money on death of the policyholder itself falls within the definition of life insurance business, though limited to the major illnesses named in the policy.

The insurer's claim that the additional benefit offered in the product squarely falls within the ambit of health insurance business and it is permitted to carry on this business is not found tenable.

HSBC Gains Full Ownership Life Insurance - China

HSBC said on Thursday it had received regulatory approval in China to take full ownership of its life insurance joint venture in the country, as it continues to expand its non-core banking services.

HSBC has got clearance from the Shanghai office of the China Banking and Insurance Regulatory Commission to buy the remaining 50% in its venture HSBC Life China. HSBC first agreed the deal in May 2020 in order to fully own the company to comply with China's rules on foreign ownership of insurance companies. The life insurance venture, launched in 2009, is headquartered in Shanghai and has a presence in ten cities across China.

Under chief executive officer Noel Quinn, HSBC is injecting US$3.5 billion into its wealth and personal banking business in a bid to become Asia's top wealth manager by 2025.