Kyobo Acquires

Kyobo Life Insurance is pursuing the acquisition of AXA General Insurance, a subsidiary of France's AXA Group, in a move to complete the final puzzle piece of its transition into a financial holding company. The insurer has sent out requests for proposals to global investment banks and accounting firms to select an acquisition advisor, with due diligence expected to begin as early as the end of this month. 

The transaction is being structured as a private deal directly with AXA Group, and AXA General Insurance's enterprise value is estimated at ₩200 billion to ₩300 billion (approximately $141.8 million to $212.7 million). AXA General Insurance was originally acquired by Kyobo Life in 2001 and sold to AXA in 2007 — meaning this deal would bring the company back into the fold after roughly two decades. 

Kyobo Life has been moving aggressively this year, having already acquired SBI Savings Bank and Kyobo AXA Asset Management in succession, rapidly building a comprehensive financial portfolio spanning life insurance, non-life insurance, securities, asset management, and savings banking. The company is also simultaneously advancing plans to relaunch its initial public offering.

Japan Rising Interest Rate

Meiji Yasuda Life Insurance, one of Japan's top five insurers, is considering the implications of an industry-wide increase in policy cancellations, as policyholders are being encouraged by higher interest rates to consider alternative financial products.

Japan’s life insurers are facing a surge in policy cancellations as rising interest rates make alternative investments more attractive. During the first five months of 2026, insurers paid out more than JPY6tn ($37.7bn) to customers who terminated their policies, roughly 40% more than in the same period a year earlier. The figure is the highest recorded in data from the Life Insurance Association of Japan dating back to 2020.

The trend is particularly significant in Japan, where life insurance products often combine death protection with savings or investment features. As the Bank of Japan has moved away from its long-standing negative interest rate policy and raised rates to 1%, investors have increasingly sought opportunities offering higher returns.

The changing investment environment is putting pressure on insurers, with some policyholders choosing to surrender existing policies and redirect their money towards higher-yielding assets.

Indonesia Life Insurance 1st Quarter 2026

Indonesia's life insurance industry recorded booked new business premiums of $1.5b (Rp27.90t) in January to March 2026 (Q1 2026), up 5.0% from a year earlier.

Indonesian Life Insurance Association, or AAJI, said 56 life insurers insured 118.28 million people during Q1 2026, which rose 20.9% year-on-year.

AAJI said the figures showed the industry continued to provide financial protection to the public despite economic pressures. The industry’s total income reached $2.6b (Rp47.63t) in Q1 2026. During the same period, insurers paid $2.1b (Rp38.73t) in claims and benefits, up 1.5% year on year.

Total unweighted premium income was relatively stable at $2.6b (Rp47.27t). Traditional life insurance remained the largest product contributor, generating $1.7b (Rp30.10t) in premiums in Q1 2026. AAJI said this showed that basic protection remained a key part of household financial planning.

By distribution channel, bancassurance remained the largest contributor, with $1.0b (Rp18.54t) in premium income.

Alternative distribution channels generated $0.8b (Rp14.44t), whilst the agency channel grew 1.2% to $0.8b (Rp14.29t) during Q1 2026.

Children Insurance Fraud

A court in the central city of Danang on Thursday sentenced a 45-year-old woman to life imprisonment for murdering her five-year-old son and fraudulently claiming more than VND4.1 billion (around US$150,000) in life insurance payouts after staging the death as an accidental drowning.

The Danang People's Court found To Thi Ty Na, from Thang Binh Commune, guilty of murder and insurance business fraud. She was sentenced to life imprisonment for murder and six years in prison for insurance fraud, which combined into a life sentence under Vietnamese law.

According to the indictment, police initially received a report on January 3, 2023, that Na's son, identified as N.V.H., born in 2017, had been found dead in a bathroom bucket at the family's home the previous night.

However, the boy's paternal aunt, Nguyen Thi Bich Tam, reported her suspicions to authorities on the same day.

Tam told investigators she had reviewed the home's security camera footage and discovered that Na had deliberately redirected one of the cameras before the incident. Tam also recalled that another of Na's children had died in similar circumstances in 2021 after drowning in a bucket in the bathroom, following which Na received more than VND2 billion in insurance compensation.

The similarities between the two deaths prompted police to launch a full investigation. Prosecutors said there was no evidence that the child could have accidentally drowned in the position in which he was discovered.

Although the boy had no injuries before the incident, the post-mortem examination found multiple bruises and marks on his forehead, groin and leg, indicating he had struggled against external force before his death.

Court documents showed that Na had previously served a 40-month prison sentence for theft before returning home, marrying and raising four children. After her husband died in 2020, she struggled financially. Prosecutors said she had sold the family home for VND1.2 billion to cover living expenses and later exhausted the proceeds.

Na subsequently purchased seven life insurance policies covering her four children, paying annual premiums exceeding VND100 million ($3,800). She named herself as the beneficiary of all the policies. Her youngest son alone was covered by two separate life insurance contracts with different insurers.

Following his death, Na falsely declared that he had accidentally drowned, enabling her to claim insurance benefits. Based on the fraudulent documentation, the two insurance companies paid her more than VND4.1 billion, all of which prosecutors said was spent on personal expenses.

During the trial, Tam reiterated that the altered camera angle had first raised her suspicions, while the child's teacher testified that the boy had been healthy and showed no signs of injury before his death. In her final statement before the court, Na continued to deny the charges and asked the judges to allow her to return to her family.

After reviewing the evidence and arguments presented during the trial, the court ruled that prosecutors had proved beyond doubt that Na murdered her son in order to obtain insurance money and handed the woman a life sentence.

China Subject Offshore Insurance Income To Domestic

China's State Taxation Administration said offshore insurance income was subject to domestic tax, local news outlet the Paper reported, citing an official on Friday.

China will treat all residents' overseas income equally, regardless of whether it is overseas insurance income or other investment income, all income must be declared and taxed according to law.

The clarification came after reports emerged that local tax authorities were stepping up cross-border tax compliance efforts and reviewing tax residents' unreported foreign income.

Beijing and Hangzhou authorities have started to apply personal income tax rates of 20% on returns from Hong Kong insurance policies. Mainland Chinese authorities have escalated scrutiny of offshore investments in recent months, which analysts say could weigh on money flows to Hong Kong.

Taxing offshore-sourced income derived by Chinese tax residents, including returns on overseas insurance policies, is a common international practice and has been consistently upheld since the implementation of China's Personal Income Tax Law, the official said.

South Korea Life Insurers Faces Declining Sales

South Korean life insurers are facing declining sales, as demand for new policies fell amidst a shrinking population and an aging society. According to statistics from the Korea Life Insurance Association (KLIA), the number of new life insurance contracts in the first half of 2026 totalled 4,112,902, down 12.9% from the first half of last year. New contract premiums also fell 6.8% over the same period to KRW744.37bn ($519m).

The KLIA statistics reveal that the overall decline in new contracts was largely driven by weak sales of protection-type insurance products. In the first half 2026, new protection-type insurance contracts totalled 3,869,319, down 13.4% from a year earlier, far exceeding the decline in savings-type insurance (-3.6%). New contract premiums also fell 5.9% to KRW632.07bn.

On the other hand, the base for new subscriptions shrank due to population decline from low birthrates and aging, while new demand itself fell as insurance subscription rates had already reached high levels.

Protection-type insurance sales also contracted on a first-year premium basis. From January to April 2026, first-year premiums for individual protection-type insurance totalled KRW489.2bn, down 22.0% from KRW627.2bn a year earlier. First-year premiums for whole life insurance, the flagship product, fell 11.3% from KRW264.5bn won to KRW234.6bn, while disease insurance fell 20.4% from KRW97.8bn won to KRW77.9bn.

The slump in the core business has also affected earnings. In the first half of 2026, net profit in the insurance divisions of the five major financial holding companies totalled KRW1.118 tr, shrinking 21.0% from a year earlier.

4 Main Reasons Insurer/Takaful Rejected Claim

While every contract is unique, most claim rejections stem from a handful of recurring issues.

Policy Exclusions and Limitations
Claimants often assume their coverage is all-encompassing, but it rarely covers everything. Rejections often happen because the specific treatment or condition is explicitly excluded in the policy, such as certain cosmetic procedures or “experimental” treatments.

One of the more common areas of dispute concerns the interpretation of what constitutes “medically necessary” treatment. While a procedure may be recommended by a treating doctor, the insurer may decline the claim if its medical assessors determine that the treatment falls outside the policy’s definition of medical necessity, such as where it is considered optional, cosmetic, or non-essential.

Certain pre-existing illnesses or hospital admissions are primarily for investigation or diagnostic check-ups rather than active treatment. Not every treatment recommended by your doctor will be covered under your policy.

Non-conformance with Terms and Conditions (Breach of Conditions)
Many insured believe that once they have paid their insurance premiums, any loss or medical expense will automatically be covered. However, insurance policies operate within a framework of terms and conditions that policyholders should understand. Claims can be declined where those requirements are not met.

For example, a motor accident claim may be declined if the vehicle was driven by an unauthorized or unlicensed driver, while a medical claim for a non-emergency elective procedure may not be covered if prior approval or a Guarantee Letter (GL) was required but not obtained.

Similarly, a burglary or water damage claim may be declined if the property remained unoccupied for a period exceeding the period allowed under the policy and the insurer was not notified as required under the policy terms. These seemingly small oversights can result in a rejected claim, even when the loss is genuine.

The same applies to reporting timelines. If your policy says you must report an incident within 14 days, waiting two months to do so can give the insurer grounds to reject your claim because they can no longer conduct a proper investigation.

An insurance policy is a two-way contract; if you fail to fulfil your part of the agreement, the insurer is not obligated to pay out.

Non-disclosure and Misrepresentation
Insurance is based on the principle of “utmost good faith.” Put simply, it means that insurers rely on consumers to provide complete and accurate information when applying for coverage.

By signing the application form, you are confirming that you have disclosed all material facts, including any information that may affect the insurer’s assessment of the risk and its decision to offer coverage.

Policyholders frequently do not disclose certain symptoms because they consider them insignificant or unrelated to their insurance application. A person may dismiss a recurring cough or a previous episode of back pain as minor issues, particularly if no formal diagnosis was made. However, such information may still be material to the insurer’s risk assessment and should be disclosed when required.

When you make a medical claim, insurers will review the information you provided when you first bought your policy. If a pre-existing condition was not disclosed, even by mistake, it could affect your claim and your coverage.

In more serious cases, non-disclosure may affect the validity of the policy or impact a person’s ability to obtain insurance coverage in the future. This underscores the importance of providing a complete and accurate medical history at the outset.

Failure to take reasonable precautions in safeguarding the vehicle
We often hear the phrase “just for a while”. Whether you are going to a 7-Eleven or waiting at an ATM, leaving your car engine running with the keys inside is a recipe for trouble.

This is often classified as a “failure to take reasonable precautions.” While it may feel like a minor lapse in judgment, your insurance contract specifically requires you to take all reasonable steps to protect your vehicle from loss or damage.

If you leave your car unlocked, the engine running, or the keys in the ignition, you are making it too easy for a thief. In such scenarios, the insurer is well within their rights to reject the claim, as the theft was not an unavoidable accident, but a direct result of the policyholder’s own negligence.

Similarly, most travel policies require you to take “reasonable precautions” with your belongings. If you leave your luggage unattended in a café or airport lobby and it is stolen, your insurer may reject the claim because you failed to keep your belongings under your supervision, breaching the policy’s duty of care clause.

The “safeguarding” clause is there for a reason, and insurers expect you to treat your vehicle and belongings with the same caution you would expect of any owner.