Japan Prudential Life Insurance Suspended

An investigatory committee blamed the fraud scandal at Prudential Life Insurance Co. on its commission system becoming “overly dependent on employees’ personal connections, deviated from its intended course and went out of control.”

Prudential Life also announced that it had confirmed 157 current and former employees defrauded 676 customers of a total of about 4.34 billion yen ($28 million).

EXECUTIVES TAKE PAY CUTS, 64 EMPLOYEES DISMISSED
The company said it also dismissed 64 employees as disciplinary measures among 157 employees or former employees who were involved in the fraudulent practices.

In response, company president and two other executives will voluntarily return 30 percent of their monthly compensation for three months. Company president also said he intends to remain in his post while committing to completing reforms at the company. He added that the current management will examine its own responsibilities, including those of past management, with advice from outside experts.

Since January, when the company disclosed the misconduct, many customers have come forward reporting losses. A compensation committee consisting of lawyers and other experts has assessed claims filed by 1,345 customers, including those of group company Gibraltar Life Insurance Co., and approved compensation for 676 of them.

The independent investigation committee’s report attributed the misconduct to Prudential Life’s compensation system, under which employees’ earnings were heavily linked to the number or amounts of contracts they secured, as well as insufficient oversight by the company’s headquarters.

The structural risks inherent in the business model materialized. It further noted that the employees’ relationships with customers became “personalized” and conducted “behind closed doors,” allowing the misconduct to continue for many years.

In response to the report, the company decided to introduce a guaranteed minimum salary beginning in 2027 instead of its full-commission compensation system. It will also strengthen monitoring by recording meetings with customers and using artificial intelligence to maintain records of those interactions.

Currently, Prudential Life is refraining from inking new contracts with customers, with the resumption date not yet decided.

The Financial Services Agency on Oct. 9 issued a business suspension order against Prudential Life under the Insurance Business Law.

The order will halt the sale of new insurance policies and other operations for about three months. The agency also issued a business suspension order for the same period to Gibraltar Life in response to the similar financial misconduct that occurred at the company.

In addition, it issued a business improvement order under the same law to the parent company, Prudential Holdings of Japan Inc., citing deficiences in its system for overseeing its subsidiaries.

Zurich Shopee Tie-up Malaysia

Zurich Malaysia and ShopeePay Malaysia Sdn. Bhd. are using e-commerce and digital payments to sell critical illness insurance to Malaysians who lack adequate cover, as medical costs rise and conventional distribution struggles to reach some consumers.

Malaysia insurance and takaful penetration rate is about 56%, but the rate falls to about 41% after excluding people with multiple policies. Only 4% of lower-income households have some form of life insurance or takaful cover.

Zurich Malaysia is seeking to narrow the gap by selling insurance through Shopee and ShopeePay rather than relying solely on customers approaching agents or insurers.

Zurich offers critical illness insurance digitally without a medical exam. The product covers as many as 14 critical illnesses, compared with traditional policies that may cover as many as 45 conditions.

Zurich Malaysia said products sold without an agent need to be simple enough for customers to assess themselves. For many customers, this may be their first critical illness coverage. Rather than overwhelming them with a complex product, we believe it is important to provide protection that addresses essential needs in a way that is easy to understand and purchase.

ShopeePay said 46% of its surveyed insurance and takaful buyers in 2026 lived outside urban areas, whilst 67% said they would not have bought personal accident or critical illness cover without encountering the products online.

Another 36% reported difficulty reaching an insurance agent offline, whilst 88% were confident buying insurance or takaful and making claims entirely online.

Customers can pay critical illness premiums through SPayLater the following month without fees or in instalments of as long as 12 months. 70% of its motor insurance and takaful policyholders already prefer the service, mainly to spread larger annual payments over time.

Medical inflation in Malaysia is running at about 15% to 16%, driven by treatment costs, greater use of healthcare services, and chronic diseases. Other source forecasts medical costs across Asia to rise 12.5% in 2026, nearly six times general inflation.

Bank Negara Malaysia said net underwriting losses for life insurance and family takaful funds widened to $881m (RM3.6b) in the second half of 2025 from $220m (RM900m) in the first half.

Zurich’s digital product pays a lump sum after diagnosis of a covered illness and provides monthly income support and access to a second medical opinion. The money can help cover lost income and other expenses.

A recent survey of 1,060 adults supporting children and ageing parents found that 59% considered themselves adequately insured, but only 35% could maintain their lifestyle for more than six months if their main income stopped. About 29% said they could manage for less than three months.

Great Eastern Partnered Monee

Monee, the fintech arm of Shopee’s parent company Sea Limited, has partnered with Great Eastern to launch travel and motor insurance products on Shopee.

The travel insurance offers protection against common travel disruptions including trip cancellations, flight delays, lost baggage, and medical incidents, subject to terms. Selected plans also include coverage for adventure activities like snowboarding and scuba diving.

From 1 to 31 October 2026, Monee will be offering up to 60% off for Great Eastern Travel Insurance plans, with additional stackable vouchers.

Monee and Greater Eastern will also offer insurance coverage for motor and electric vehicles. The offers include a dedicated claims processing channels, with flexible repair options and workshop of choice, Monee and Great Eastern said.

It also offers a personal accident coverage of up to $94,000 (S$120,000) for the insured and up to $39,100 (S$50,000) for authorized drivers and passengers, with medical expense reimbursement included.

They can also add coverage for daily transport allowance whilst the vehicle is being repaired in the event of an accident.

Car Owners with Drive and Save Plus can enjoy up to $390 (S$500) excess "waiver" for their first car repair done at any Great Eastern authorized workshops, according to Monee and Great Eastern.

For EV owners, coverage includes up to $3,900 (S$5,000) accidental damage to private charging stations, up to $15,600 (S$20,000) for home contents damage from fire due to charging, and up to $780 (S$1,000) in outpatient medical expenses arising from electric shock while charging the vehicle.

Proper Advice Practices - Malaysia Life Insurance

Bank Negara Malaysia (BNM) is seeking feedback on proposed new rules on insurance and takaful providers meant to strengthen protections on policy owners. Financial service providers (FSPs, including banks and insurance and takaful providers), intermediaries and industry stakeholders have until Jan 31 to submit their concerns or proposals.

Intermediaries are individuals and firms recommending, arranging or selling of insurance or takaful products to customers.

The proposed "Proper Advice Practices for Insurance and Takaful Business" aims to replace the "Proper Advice Practices for Life Insurance/Family Takaful Business" issued in 2012. The central bank said the proposed rules seek to ensure recommendations to policy owners align with their financial needs, objectives and personal circumstances.

It said FSPs and intermediaries are expected to adopt robust advisory practices that are aligned with customers' interests, emphasizing that such practices should be “guided by the principles of suitability, transparency, fairness, professionalism and accountability”.

A key proposal is the standardization of the Customer Fact-Find (CFF) form under a single "Complete Customer Disclosure" framework.

Intermediaries will be required to collect sufficient details to build a comprehensive profile of a customer before recommending products, including information to identify vulnerable consumers, risk profiling, income regularity, existing coverage and overall budget.

The draft rules also introduce stringent sales controls for investment-linked products, particularly for vulnerable consumers. It is proposed that investment-linked products can be recommended to vulnerable consumers only if they possess prior financial experience or express explicit interest, and consent to audio or video recording of the sales interaction.

Additionally, new controls are proposed for telemarketing channels, including a ban on concluding sales over the phone. Prospective customers must instead be referred to qualified intermediaries to undergo full needs-based assessments.

To ensure compliance, FSPs must set up pre-issuance verification controls and post-issuance sales quality reviews conducted by independent units not involved in direct sales.

Pre-issuance verification calls will be mandatory for high-risk sales, such as those involving vulnerable consumers, high-premium products, or policy replacements.

The proposed policy will apply to all individual life insurance, family takaful and medical and health insurance/takaful (MHIT) products. It excludes products sold via direct digital channels without intermediary advice, group policies, workplace employee benefit plans and Perlindungan Tenang products.

BNM said it is considering a six-month grace period following the issuance of the policy document to ensure that FSPs have time to enhance their systems and processes. The proposed new rules come amid public concern on rising healthcare and insurance costs.

The government is currently trialing a base medical insurance plan that starts as low as RM60 before a full rollout next year.

Grab Acquires Majority Stake Of Atome

Grab Holdings Ltd agreed to buy a majority stake in Singapore-based buy-now-pay-later platform Atome Financial for US$1.49 billion (RM6.1 billion), staking a major bet on financial services as it builds out a new pillar of growth.

The ride-hailing and delivery firm is acquiring 60% of Atome as part of a deal with its parent Advance Intelligence Group and certain other parties. The purchase will give Grab a stronger foothold in the consumer lending business in Southeast Asia, helping it expand beyond its app ecosystem to spur growth and gain new customers. Grab now expects to grow its loan book to over US$6 billion by 2028, including Atome, compared with a previous target of more than US$3 billion by the end of this year.

Grab is trying to revive triple-digit growth that fell by the wayside years ago after fierce competition cut into its market share. The Uber Technologies Inc-backed company has rolled out new features to tempt users in countries with challenging economic conditions, like AI-powered tools and functions that allow customers to split rides with friends.

Shares of Grab have declined almost 40% in 2026, giving the company a market value of US$12.3 billion.

This year, Grab purchased Stash Financial Inc in the US at an enterprise value of US$425 million, as well as meal-delivery firm Foodpanda’s Taiwan operations from Delivery Hero SE for US$600 million.

Atome, which stands for “Available to me,” offers consumers flexible payment solutions at online and offline retailers in fashion, beauty, lifestyle, travel, fitness and homeware, according to its website. Its revenue in 2025 surged 80% to US$470 million, helping the company achieve its second-straight annual profit before taxes.

Indonesia Credit Insurance Under Stress

Indonesia's general insurance industry is facing mounting pressure in its credit insurance business as claim costs outpace premium growth and higher interest rates threaten to worsen loan quality, raising concerns about profitability and risk exposure across the sector.

The credit insurance loss ratio climbed above 100% again in the first quarter of 2026, signaling that insurers paid out more in claims than they collected in premiums, according to data from the Indonesian General Insurance Association (AAUI).

The association reported a claim ratio of 102% during the January-March period. Credit insurance claims rose 17% from a year earlier to Rp 4.2 trillion ($236 million), while premium income increased only 3.2% to Rp 4.1 trillion.

The deterioration comes despite Indonesia's relatively strong economic growth, suggesting that gains in the broader economy have yet to fully translate into stronger business conditions and household purchasing power.

The worsening claims trend coincides with signs of weakening credit quality in Indonesia's financial sector.

Data from the Financial Services Authority showed gross non-performing loans in the banking sector increased to 2.14% in March 2026 from 2.05% at the end of 2025. Loan-at-risk ratios also rose to 8.94% from 8.77%.

The financing industry experienced similar pressure. Gross non-performing financing climbed to 2.83% from 2.51%, while net non-performing financing edged up to 0.8% from 0.77%.

Rising claims ratio serves as a warning signal for the industry, adding that insurers may become more selective in underwriting credit insurance if current trends continue. Insurance companies are not only collecting premiums, but they also face rising reserve requirements as claims increase. This ultimately puts pressure on industry profitability.

The implementation of PSAK 117, Indonesia's latest insurance accounting standard, is also expected to encourage insurers to focus on business lines with healthier and more measurable risks. This latest accounting framework requires insurers to hold larger reserves for riskier businesses, making credit insurance portfolios with high claim rates less attractive.

Higher interest rates are adding another layer of concern. Bank Indonesia's tighter monetary policy and elevated benchmark interest rates could weaken borrowers' repayment capacity, particularly among companies experiencing limited growth.

Although not all bank loans are covered by insurance, deteriorating credit quality across the financial system could still lead to higher insurance claims.

Bank Indonesia has raised its benchmark BI Rate to 5.75%, bringing cumulative rate hikes to 100 basis points over the past month.

At the same time, the government is reportedly encouraging the consolidation of credit insurance and guarantee portfolios among several state-owned enterprises under Danantara Indonesia, the country's sovereign wealth fund. The initiative aims to centralize risk management within institutions specializing in credit guarantees, including state-owned guarantor Jamkrindo.

Under the proposed structure, general insurers would increasingly focus on traditional insurance lines, while credit guarantee businesses would be handled by specialized institutions.

Indonesia Introduces Deductibles On Medical Insurance

Indonesia's Life Insurance industry has backed new health insurance rules covering co-payments, deductibles, premium reviews and insurers’ medical and digital capabilities.

The Indonesian Life Insurance Association, or AAJI, said it supports the implementation of Financial Services Authority Regulation No. 36 of 2025, which is intended to strengthen the country’s health insurance system amid rising medical inflation, higher healthcare use and increasing premiums.

Under the rules, policyholders must pay 5% of each claim, capped at $16.9 (Rp300,000) for outpatient treatment and $169.1 (Rp3m) for inpatient treatment.

Deductibles will also be applied annually rather than to each individual event.

Insurers may review or reprice premiums no more than once a year, while waiting periods must not exceed six months. Companies must also strengthen their medical expertise, medical advisory boards and information systems.

AAJI said the changes are intended to help control healthcare costs and support premium stability rather than reduce policy benefits.

The association is also encouraging closer coordination between private insurers, Indonesia’s national health insurer BPJS Kesehatan and other healthcare funding providers.