Learning From The Street

You can learn something useful from anyone.
Whenever we find ourselves ignoring someone because we’ve already determined that they aren’t “smart” enough to say something meaningful, we’ve made a big mistake. Besides being presumptuous and arrogant, this mindset blocks out every useful thing the other person might pass along. Instead of just listening and mining the conversation for nuggets of wisdom, we allow our pre-existing bias to brand everything as  “not smart enough for me.” Incredibly bad idea. I’ve yet to meet someone who couldn’t teach me something.

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If quality slips, it really doesn’t matter how good your ideas were.
The most ingenious design plans, no matter how many brains contributed to them, can fatally falter in the execution phase if quality slips.  This is equally true for intangible plans.  Imparting greatness requires a continuum of effort and attention, not just an initial brain-fueled flurry to get exemplary ideas on paper.

Don’t ever let a bully intimidate you – not even once.
Now, some might say this one is too dogmatic because it’s possible to allow a bully to intimidate you in the short term so you can get the upper hand in the long term. But the best advice I ever received about this came from a retired truck driver who said, paraphrasing, “When you let a bully intimidate you, the bully doesn’t necessarily win, but you definitely lose.” What he meant was, you lose upstairs where the loss takes a progressively worse toll on your psyche. Yes you can recover from that, but it’s going to take a lot more effort to bring your self-esteem up to par again than if you’d stood your ground to begin with. Reasonable people can differ on this, of course, but I think it’s sound advice.

Reciprocity is the name of the relationship game and always will be.
If you can’t find it in yourself to return a favor, or give back more than you got when someone helped you out of a bind, then you are relationship handicapped. While this may seem like basic intuitive logic (and it is), it’s amazing how often it’s ignored.  While relationships shouldn’t be tit for tat arrangements, the underlying willingness to reciprocate—even if it’s really hard to do—must be there for the relationship to grow and flourish. None of us are one-way streets.

Learning is good; Doing is better.
Well, ok, this one is a little bit on the nose.  Learning is more than good – it’s essential. Learning is the elixir that makes the human brain the most powerful organic decision-making and problem-solving tool on the planet.  The main point here (passed on to me by a former co-worker) is that there’s a certain magic in doing that many people simply miss out on. You can learn a lot about car engines, but until you get under the hood and work on one, you can’t see just how remarkable an invention these machines we take for granted truly are.  That’s one example of thousands, but the same principle applies.

Kindness isn’t optional.
Kurt Vonnegut famously said, “There’s only one rule that I know of… you’ve got to be kind.”  Why do some people just “get” this while others find being kind a chore? Personally, I think it has a lot to do with our need to feel right, and an attendant unwillingness to consider that maybe we really aren’t right, and it’s not worth treating another person unkindly to prove whatever point is on the table. Besides that, being unkind is illogical because it only incites unkindness aimed at you, and who wants that?

You can survive anything (assuming it doesn’t physically kill you).
More than one person has said something like this to me, and I think it’s dead on right.  Often it’s rumination about how we won’t survive this or that calamity that really gets us. But usually we can find the inner reserves to overcome just about anything, and will probably surprise ourselves that we pulled it off.  I’m not saying it won’t hurt like hell, or bring us to our very brink, but we usually give ourselves far too little credit for being able to overcome difficulty.

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Money is important, but experience is invaluable.
I honestly can’t recall where I first heard this but I’m putting it on this list anyway because I think it’s really important. When you buy something, you’ll enjoy that thing for awhile, but our in-built tendency toward habituation will eventually assert itself and the thing will become yet another thing we own. When we invest in experience, however, we are buying memories, and new learning, and new ways of thinking, and a whole lot more.  Those are things that become part of who we are, and no physical item can touch that dollar for dollar.

Just be ready.
We’ll end with a nice bit of simple logic. Just be ready…for anything. Quoting that inestimable philosopher, Mike Tyson, “Everyone has a plan – until they get punched in the face.”  Exactly.  So be ready to get punched in the face, and then refer back to #7 on this list.

Why We fail Desite Ourselves

Like Yoda said, you just don’t believe it. 
The crucial part of Yoda’s dialogue with Luke is “believe.”  The human brain is a powerful problem-solving and prediction making machine, and it operates via a multitude of feedback loops. What matters most in the feedback loop dynamic is input — what goes into the loop that begins the analysis-evaluation-action process, which ultimately results in an outcome. Another way to say that is — why would you expect a convincingly successful outcome when you haven’t convinced yourself that it’s possible?

Other people have convinced you of your “station.”
I’ve always thought the “know your station in life” idea to be among the most pernicious we humans have ever come up with.  What’s more pernicious than the idea itself is that it’s often heaved upon us by other people, and they convince us that we are what we are and we’d better just live with it because, well, that’s what we’ll always be. 

You don’t want to be a distrupter
Disruption is perceived as a threat to our threat-sensitive brains. Disruption means that consistency, stability and certainty might get jettisoned for a time, and that puts our hard-wired internal defense system on high alert. Sometimes, though, you have to override the alarms and move ahead anyway.  If you never do, you’ll never know what could happen.

You think, “what if I die tomorrow?”
We all think this from time to time.  And you know what, sure, any of us might die tomorrow — all the more reason not to waste time thinking about it and hamstringing yourself from going after what you want to achieve.  Would you rather die as a monument to mediocrity or as someone who never quit striving?  Which leads to the next one…

You wonder how you will be remembered.
The rub here is simply that, if you “die tomorrow,” will people remember you as someone who clung to stability like an existential life preserver — and is that what you really want?  I know for a fact that many people do want exactly that, because it’s a comfortable niche to occupy on the obituary page.  ”She/he was a good person, good friend, good….”  Good is fine, but it ain’t great. You can’t strive for great achievements by dropping anchor in Goodville.  My take on this is: it’s OK to wonder how you’ll be remembered, but don’t let thoughts of “good and nice and stable” effect that all important feedback loop, because if you do your brain will be happy to oblige with lots of good and little else.

You think there must be a pre-established role for your life, and you might be screwing with  it.
This one also touches on the “station” idea discussed above, but it goes deeper than that. We want to believe there’s a reason for everything, and that everything has a prime mover — an agent, whether human or otherwise. So, we think, what if there’s a reason we are what we are — what if celestial agency has determined it so?  The error in thinking here is clear — agency is a figment our brains rely on to manage difficulty with as little trauma as possible. The first thing to do is recognize that, and then recognize that the role for your life has only one true agent — You.

Your career appears to be well-established and that’s good…right?
Well, maybe that’s good, sure.  The question becomes, is “established” what you really want?  Maybe it is, and that’s cool. But if “established” means you can’t reach beyond certain imposed parameters to achieve anything else that you truly want, then maybe it isn’t so useful after all.  Like most things, this is a personal choice and it doesn’t have a right or wrong answer.  But it’s worth acknowledging that you may very well be “establishing” yourself out of greater achievements.

You are afraid of losing what you have built.
A totally legitimate fear, and one we should kick out of our perspectives as quickly as possible.  Here’s one example why:  Remember this little thing we’ve been suffering through for sometime now called a recession?  Remember how many people lost all or nearly all they’d “built” during these last few years of economic erosion? The reality is, you can lose everything in a heartbeat through no fault of your own, so why allow that fear to stop you from reaching out for what you really want?  This goes in the same basket as “I could die tomorrow.”  Yes, true, we can lose, we can die. So what? Push forward.

You think, “maybe I’ve hit my ceiling.” 
The proverbial “ceiling” — so long have ye been with us, and yet so little have ye given us.  I side with the late great Peter Drucker who said -  if you reach a point in your career where you think you won’t progress any further, then start focusing on the next part of your life.  Actually, he added, you should start thinking about the next part of your life well before you begin it.  The point is, forget about ceilings and focus on achievement. When you start using the cultural shibboleth of the ceiling as an excuse, you are achieving nothing and will continue to do just that.

Confusion about where to go.
Of all of these 10 ideas, this one is to me the most difficult because it plagues me almost constantly. Gearing up the cerebral feedback loop for achievement is one thing, but without a sense of focus and direction, all of that energy isn’t going to yield very much in the end.  My experience has been that sometimes you have to let the energy flow for a while without too firm a sense of direction and see if focus emerges organically. Once it does, you can then nurture it into a more structured method for getting where you want to go.

Climbing Corporate Ladder

1. Ask questions instead of making a statement

When you lead in with a question you give someone the opportunity to immediately disagree with you. Instead, put your idea out there first. Be courageous about the thing you most want to achieve and make everyone understand it. Eg: I strongly think we should implement this strategy and here are three reasons why.

2. Avoid negotiation

Good negotiation is a communication. Go into every negotiation knowing exactly what you want to come out with. Don't be afraid to promote your value and your worth. Be clear, upfront and decisive.

3. Tolerate jerks

We often put up with someone or a situation far longer than we should. Do this for too long and we run the risk of exploding. You don't have to be unkind to the person who treats you badly; you just have to set boundaries. Be honest about how much you can achieve and offer the person choices. For example, "I am happy to do that for you but with the resources I have available it will take me this much time".

4. Act like a financial ostrich

We often say "I don't need to be rich I just want to be comfortable". That's usually because we separate the idea of doing good work and getting paid well. You need to aim for having enough money to live your life the way you want, free from concerns about anything. Also, always keep your hand in the money pot at home. Know exactly how much money comes in and comes out. You always need to know what's going on.

5. Forgetting that you have to compete to win

Aim high. True workplace gains are made on the edge of the boundaries. Learn the rules of your organisation and look beyond them if you want to succeed.

6. Perfect perfection

Know when good enough is good enough. Don't fuss over something. Get it out, get it done and move on.

7. Volunteering

Don't offer to organise anything that has a low pay-off for you either professionally or personally. Only volunteer for things that are close to your heart or high profile. Any work you do must get you in front of the decision makers.

8. Over-explain

As an adult there is no reason for you to justify why you need something. We often try and fill the silences with apologies to soften our message. Don't do that. Use an economy of words. Example: I need to take Friday off for personal reasons. If you need anything done before then please let me know and I will arrange to take care of it.

Also, engage more in active listening.

9. The tiara syndrome

Don't expect praise for your work. Always present a business case for what you want and what you set out to achieve. Don't just expect to be handed a tiara for your efforts.

Sun Life Malaysia

Sun Life Malaysia made its grand entrance into the Malaysian insurance community today with its celebratory launch at a reception held at The Westin Kuala Lumpur.

Sun Life Malaysia consists of Sun Life Malaysia Assurance Berhad and Sun Life Malaysia Takaful Berhad, the renamed CIMB Aviva Assurance Berhad and CIMB Aviva Takaful Berhad entities purchased by Sun Life Financial Inc. (Sun Life) and Khazanah Nasional Berhad (Khazanah) from Aviva International Holdings Limited and CIMB Group Holdings Berhad (CIMB Group).

The launch comes just four months after completion of the RM1.8 billion (C$602 million) acquisition in April this year. Sun Life and Khazanah each own 49 per cent and CIMB Group retains a two per cent share.

With the launch of Sun Life Malaysia, Sun Life Financial now has operations in seven Asian markets and builds on a history in the region that reaches back 120 years. It is also a significant launch for Khazanah and is its first entry into the insurance sector.

Under the new partnership, Sun Life Malaysia has the exclusive right to distribute takaful and life insurance products through CIMB Bank's network of 312 branches and eight million customers across the country.

Naming Trustee Under Life Insurance

Policy owners and insurance companies have an inevitable headache looming, as they scramble to make sure they comply with a new rule which stipulates that policy owners can no longer name themselves as the trustee to their life policies. This applies to both new and existing policies. 

Under Schedule 10 of the new Financial Services Act 2013 (FSA), which came into force on July 1, 2013, it is stated that policy owners "may appoint any person other than himself to be trustee of the policy moneys". (This wasn't the case under the previous Insurance Act 1996).

In the past when a person buys a life policy and names his spouse or kids as a beneficiary, he would usually appoint himself as the trustee. But because of the change in the law, they can no longer do so. Potential problems may occur in situations where the spouse of the policy owner doesn't want to be appointed the trustee and their children, as beneficiaries, have yet reach the legal age of 18 years.

If the policy owner dies and his children are still minors, the policy moneys would automatically be held by Amanah Raya Bhd (as the country's public trustee) until the children reach 18 years of age or unless there is a competent trustee available to take over.

Changing Need For Insurance

Increasing inflation, shift to nuclear families, and the fast track change in life style patterns throw a financial challenge which can be addressed only by life insurance. Your financial plan needs to be in sync with your life stage, and the requirements that are specific to a particular stage of life. The need for life insurance coverage changes as you enter a new stage of life and the same amount of coverage may not be sufficient with this change. So whenever your life stages change, you need to re-evaluate your need for life insurance coverage.

1. Single with dependent parents:
If you are single and you have financially dependent parents, then you need to take life insurance even before your engagement. You cannot compare yourself with other singles whose parents are not financially dependent. You are in a unique life stage. In case of any accident, your parents should not financially suffer. Keeping this in your mind, you need to take required life insurance coverage.

2. Newlywed:
When you are married, the need for life insurance increases. You need to cover yourself with adequate life insurance in order to financially protect your spouse. The right time for you to take the first policy is as soon as you get engaged.

3. Entering parenthood:
You need to increase your life insurance coverage when you are blessed with a baby. You are responsible for the financial well being of the child, his or her higher education and wedding. As a responsible parent, you need to protect your child's future with adequate life insurance coverage. As soon as your wife's pregnancy is confirmed, you need to re-evaluate your need for life insurance.

4. Acquire a new home:
Whenever you buy a new home on mortgage, your outstanding liability goes up. In case of any eventuality to you, this financial burden falls on your family. So as to place your family in financial comfort, you need to take enough life insurance which covers the outstanding loan, maintenance of the property and property taxes to be paid. This coverage will make your new home a happy and peaceful home.

5. Job promotion:
Job promotion results to increased income and this paves the way to a better lifestyle. Your family needs this increased income in order to maintain that new lifestyle. As you need to protect your family's new lifestyle, you need to re-evaluate your life insurance requirement.

6. New debt:
All your debts like car loan, personal loan need to be covered with an insurance policy. Whenever you apply for a loan, you need to increase your life insurance coverage. You need to make sure that you are leaving assets for your family and not the outstanding loans as liabilities.

7. Children education:
Policies on life of growing children especially those studying for expensive courses like engineering or medical or MBA's from India or abroad since money outgo is fairly large

8. Changes in marital status:
If your marital status changes because of death of your spouse or divorce, then you need to rework your life insurance requirement. The reason that, your family is solely depends on you now. Also you need to make necessary changes in the nomination of the existing policies in which you have nominated your spouse.

9. Business liabilities:
If you are a businessman, then your business liabilities are also an important factor in determining your life insurance coverage. All your trade debts and business loans are need to be adequately covered with insurance coverage. This will help especially when it is not a family business. Also insurance policies cannot be attached in case a decree is passed against a judgment debtor and it helps creation of a protection fund.

10. Post retirement:
After your retirement, you do not earn. So there will not be any financial loss for the family in case of any mishappening to you. So all your insurance policies can be closed or cancelled on your retirement. During your working life, whatever the policies you take, you need to make sure that the policy matures or closes on or before your retirement.

In a nutshell, understanding the life stage in which you are presently in, and taking the life insurance coverage that suits your life stage, gives you and your family a peaceful mind.

Anti-Cheating Helmet

Photographs posted to a Bangkok’s Kasetsart University alumni Facebook page appears to show students wearing a “helmet”, which consist of a piece of paper wrapped around the head and pieces of paper stapled to either side.

Kasetsart University is a public university, ranked one of the best in Thailand and with a focus on agriculture, food, technology and innovation.

The low-tech anti-cheating helmet invention doesn’t look sophisticated, but would function like horse blinkers and prevent wearers from glancing to the side — which should prevent any sneaky peeks at neighbours’ answers.

And it seems the anti-cheating helmet has caught on, with Weerachai Phutdhawong, a University of Agricultural Sciences associate professor, posting photos of several versions on Facebook.

One design resembles a cardboard box, with a hole cut out for the neck and one side removed, so that wearers can see.

But another version has only a small slit cut out for the eyes, to limit vision even further.

In February this year, the Thai Education Ministry on Wednesday asked the Department of Special Investigation to investigate suspected cheating in its teacher recruitment examination.

And claims of widespread cheating in a national police exam was alsoinvestigated by the Royal Thai Police Office (RTPO).

UniAsia - SOLD

A unit of Malaysian autos-to-property conglomerate DRB-Hicom is seeking government approval to sell Uni.Asia Life Assurance Bhd in a deal valued at RM518 million.

The buyer is an unnamed company to be owned by Prudential Insurance Company of America and Malaysia's Bank Simpanan Nasional on a 70:30 shareholding basis, DRB-Hicom said in a stock
exchange announcement yesterday.

DRB-HICOM said its 51% owned Uni.Asia Capital had submitted an application for the country's minister of finance to review the proposal to sell its 100% stake in Uni.Asia Life Assurance for cash.

Malaysia's central bank had given the green light on August 15 for UAC to start negotiations with "certain parties" who want to acquire an interest in Uni.Asia Life Assurance, DRB-Hicom said

Takaful Ikhlas Targets High Growth

Takaful Ikhlas Sdn Bhd, the Islamic insurance arm of MNRB Holdings Bhd, is eyeing to grow its total combined gross contributions by 20% to RM900 million for the current financial year ending March 31, 2014 (FY14) from about RM751 million a year ago.

Its president and CEO Ab Latiff Abu Bakar (pix) said the takaful operator is putting in strategies to improve its ranking a notch up in two years. Takaful Ikhlas' market share is currently at 12% based on gross contribution.

"For 2013, Takaful Ikhlas is looking at growing its business further as compared with previous financial year. The competition in the industry will be greater this year and the challenge is to find the right strategies and initiatives which can expand our business further through the various channels," he told SunBiz in a recent interview.

"It's a tall order but its all about the execution of the strategy and the monitoring of it."
The company is currently ranked third among takaful companies behind Etiqa Takaful Bhd and Syarikat Takaful Malaysia Bhd in terms of total gross contribution.

For FY13, Takaful Ikhlas posted an 8.05% increase in gross contribution. This was an improvement over the previous year when gross contribution dropped 8% to RM695 million from RM760 million in FY11.

For FY14, Ab Latiff said Takaful Ikhlas is looking at strengthening its distribution channels with main focus given to family agency.

"The strategies shall include looking at new area of penetration such as Gen Y and non-Muslim markets, equipping the distribution channels with the right tools through technology and developing the right products to suit the target market segments," he said.

Due to the growing competition of the takaful industry, the company is looking at a few new areas to venture, taking into consideration the aspect of the current social trend and shariah compliance products, on top of the market trend.

Takaful Ikhlas will be banking on its 3,500 family business agents to boost its family takaful business, regarded as a long term saving mechanism, to drive the company's growth and profitability further.

"We plan to introduce or improve our products range to appeal to a wider category of non-Muslim customers. Hence, in the next 12 months we target to rope in 300 non-Muslim agents from a very small base at the moment," he said.

Earlier this month, Takaful Ikhlas launched three regular premium investment linked products targeted especially to attract more non-Muslim agents.

Also in the plan is to boost its regular premium to account for 70% of total family contributions in three to four years from 45% currently.

"Regular premium stands at 45% of total family contribution. The strategy to increase the regular premium business lies mainly in increasing the productivity of the family agency force through the individual products," he said.

To reach the masses at a faster rate and within a short time frame, Ab Latiff said the company wants to expand into the corporate or group business which remains under-penetrated.

Asked how he plans to grow profit this year, he said: "Profit growth will be in line with the continued business growth through the multi-distribution channel, ensuring the right portfolio mix based on the right market segment. The overall expenses itself shall be monitored closely and business development expenses shall be tied to productive activities," he said.

For FY13, Takaful Ikhlas net profit was up 34.3% to RM18 million from RM13.4 million the previous year.

Takaful Ikhlas offers both family and general products. Family products consists mainly of ordinary, medical and investment-linked policies while general products comprises motor, fire, marine, aviation and transit and other miscellaneous classes.

The takaful operator currently has 13 branches throughout Malaysia and plans to set up three service centres in smaller towns.

What Is The Best Time To Buy Insurance

Although it's difficult to think about growing older, it’s an important consideration for anyone with responsibilities and dependents. There is no specific age that determines the need for a life insurance policy; it is essentially based on your personal circumstances.

Types of life insurance
The two main types of life insurance policy are Whole Life and Term Assurance. The former is a policy that is in place for your entire life and will pay out whether you die in 10 years or 50 years’ time. As it offers a guaranteed payout, the premiums are often quite expensive.

Term Assurance is a cheaper option, but it only covers policyholders for a fixed term. If you die after the term you won’t receive a payout, although it is possible to renew the policy for another fixed term.

The idea behind term assurance is to protect your children and family members for as long as they may be financially dependant on you, or to cover any debts, such as a mortgage.
Within term assurance, there are another two types of policy: level and decreasing term. As you may guess, level term pays out a fixed lump sum at any point, whereas with decreasing term, the payout decreases each year.

Who needs it?
There is a common assumption that everyone needs a life insurance policy. However, that’s not strictly true, as it’s really only worthwhile for people that have major financial responsibilities, whether that’s to provide for dependents i.e. children, or pay off debts, such as a mortgage.

A single person without any children or serious commitments may find that paying for life insurance is a waste of money as their death is unlikely to have any serious financial implications for their family members.

However, life insurance rates tend to increase as you get older, so there is an argument to lock in as much as possible as early in possible. In reality, investing the money you would spend on premiums is likely to be a better option.

As you start to gain responsibility and go through the various stages in your life, taking out a policy is a feasible option. In the event that the worst does happen, at least your loved ones will be protected by your life insurance.

What is it used for?
Life insurance usually pays out in a lump sum in the event of death, but there is also the option for the payment to be made in instalments over a set period of time. The payout can be spent on anything the beneficiaries wish to use it for, but the main reason is often to repay a mortgage. However, it’s also possible to use the money to replace your income, support dependents and cover the cost of education.

The amount of cover needed will depend on what you intend the life insurance payout to be used for. Think about the size of your mortgage and other debts, number of dependents and current salary.

When should it be considered?
The right time to purchase a life insurance policy depends on individual circumstances. Although having children or other dependants is the main reason people require a policy, there are other responsibilities that deem it necessary.

For example, if you enter into a joint mortgage with a friend or partner. If you were to pass on, they may not be able to keep up the repayments without your income. It’s recommended that you take out life insurance whenever you buy a house, as should your demise be untimely, your loved ones may not be able to afford to pay the mortgage.

The most common times to purchase a life insurance policy include buying a house, getting married, having children and changing your job. Again, although generalisations can be made, personal circumstances should be taken into consideration.

Married couples without any children may not require a huge life insurance policy, particularly if both parties contribute equally to the income - although there are still debts and funeral costs to consider. If you are the main breadwinner, it’s unlikely that your spouse would be able to cope without your salary.

Couples with young children are the classic case for life insurance, especially in the event that only one party contributes to the household income. The same can be said for single parents and adults that are responsible for caring for elderly parents.

The need for life insurance changes over time, as younger people are less likely to require any cover, but once the responsibilities start growing, the need for protection increases.

However, as you progress into your golden years, you might be able to reduce your life insurance policy again. If your dependents have grown up and become financially independent, you’ve paid off the mortgage and cleared any debts, you won’t need the same level of cover.

Agent - Motivated By High Commission

A Harvard Business School study shows that LIC agents have an incentive to recommend more expensive and less suitable products to consumers. This especially hurts “low and medium income households (which) tend to trust the government insurance companies more than private sector firms”

The researchers sent trained auditors into the field posing as customers seeking insurance and then analysed the advice they received. The auditors’ meetings with agents revolved around life insurance, specifically two types of policies: term and whole life. The study found that agents from Life Insurance Corporation of India (LIC) are less likely to recommend a term insurance plan, when it is known that in many cases term plans are the best form of life insurance. The study suggests that the government-owned organisation does not encourage its sales agents to provide better advice and that government ownership does not appear to solve the problem of unsuitable advice.
 
Interestingly, the study says that consumers who signal sophistication by demonstrating some knowledge of insurance products get better advice. This result suggests that the worst educated consumer may suffer most from commission-driven sales behaviour. In short, the masses, who have a blind belief in LIC, equating it with government, are doomed to suffer the most.

According to the study, “Anecdotal evidence suggests that low and medium income households tend to trust the government insurance companies more than private sector firms, and the government firm might take advantage of this additional trust by pushing less suitable products. Another possibility is that agents employed by government firms are less knowledgeable about term insurance.”

But, its not just LIC agents that are to be blamed. Agents overwhelmingly recommend unsuitable products, which provide high commissions to the agent. The study says, “Agents cater to the beliefs of un-informed consumers, even when those beliefs are wrong. Salesmen are unlikely to impart neutrality to customers even if they have strong initial preferences for products that may be unsuitable for them. In case of sophisticated consumers, agents recommend term policies on top of whole life insurance policies without substantially changing premium payments, as opposed to bringing fairness to the customer and recommending only term insurance policies.” In short, the amount of premium matters to agents as it solely determines the commission they earn at the end of the day.

According to the study, “Market discipline does generate neutrality; with agents perceiving greater competition they are more likely to recommend a suitable product.” Based on an experiment, the study concluded that increasing the apparent level of competition does lead to the agent attempting to bring fairness to the customer by offering term insurance. It also suggests that encouraging customers to shop around when looking for consumer financial products may be a simple way to improve the quality of advice provided by agents. While it is always desirable for customers to ask questions and shop around, Moneylife believes that competition, availability of more information does not necessarily mean better selection because of the similar behaviour by producers and distributors and also behavioural flaws of consumers.

The study concludes that “There is strong evidence that commissions-motivated agents provide unsuitable advice. Agents recommend strictly dominated, expensive products, 60%-90% of the time. Consumers who stated that they had an understanding of insurance products were 10 percentage points more likely to receive a recommendation that included term insurance.” The study found that agents gave correct advice in only 9% of the time; in the other 91% they recommend investment-linked products that are dramatically more expensive.

Group Insurance Is Temporary

Group Insurance is good if you remain an employee of the Organization (that purchased the group insurance). Once you are no longer an employee (for whatever reason), you (and family members) will no longer be eligible for protection. Many people covered under group insurance may not be eligible to apply for new policy due to age, illnesses and other adverse underwriting factors.

A man seeking treatment for a life-threatening illness had his health further jeopardized when his employer and health insurance company tried to cancel his coverage over a 26-cent dispute. The New Jersey Star-Ledger reports that in January, 33-year-old Sergio Branco was diagnosed with acute myelogenous leukemia. Left untreated, the illness can be fatal.

When the truck driver took time off work to seek treatment under the Family and Medical Leave Act, he was told that treatment for the leukemia required a bone-marrow transplant that would cost about $500,000, even with insurance.

To make matters worse, when Branco returned to work after his federally guaranteed leave time, he was promptly laid off. Branco and his family weren’t worried, because they knew he was eligible for extended coverage under the government’s COBRA program.

The family also launched a fundraising site for Branco’s leukemia treatments. The monthly fee for Branco’s COBRA insurance is $518.26. When his wife sent in the first payment, she erroneously made out the check for $518, forgetting to add the 26 cents.

Thus began an extended feud among the family, Branco's former employer Russell Reid, the insurance company handling his COBRA and even the Department of Labor.

Paychex, the company handling the COBRA payments, cashed the check but did not notify the Branco family of the payment error. In the middle of Branco’s treatment, he was informed by the hospital that he didn’t have insurance.

"They’re playing with my husband’s life," Mara Branco told the Star-Ledger.

Technically, the payment was still not due. So the Brancos offered to make up the difference, but they were told that his former employer had instructed Paychex to not accept any further payments — meaning that his COBRA insurance would be cancelled.

"The whole time he said Paychex is giving me false information," Mara Branco told the Star-Ledger after she contacted Branco’s former employer. "I told him if he’d just make a phone call everything would be all right. He said he’d see what he could do."

Branco’s wife even enlisted the help of the Department of Labor, whose representatives made four calls to her husband’s former employer.

Eventually, the family hired a lawyer and Branco’s physician got involved, sending a letter pleading for Branco to be added back onto his COBRA plan. Branco “will most certainly die in the very near future if he does not proceed to transplant; therefore I am writing to request that every effort be made to reinstate his health care insurance coverage," the doctor wrote.

"They know he’s literally in a life and death situation and for 26 cents, they’re denying him the right to get the health insurance coverage he needs," attorney Jeffrey Resnick told the Star-Ledger.
It took several months, but on Aug. 9, the parties involved finally agreed to put Blanco back on the COBRA coverage. Blanco’s surgery is now scheduled to take place on Friday.

"The Department of Labor said the company will reinstate him from May 'til now," Mara Branco told the paper. "They said the company did it wrong. I am super happy. It’s like a weight has lifted off my shoulder. It’s better than winning the lottery."

Mobile Technology & Generation Y

Mobile technology is radically changing the way people live their lives. Mobility is a cultural revolution, an unstoppable wave of change.Almost two-thirds of British adults now own a smartphone and use a variety of apps every day in their personal lives.

But new research commissioned by my company, EE, shows businesses are lagging dangerously behind this mobile revolution. People have mobility in their personal lives and they expect it at work as well, yet only one in five employees in large businesses are equipped to work away from their desks, while 41 percent of respondents said the mobile devices they use for work are old and not fast enough. And just 18 percent of organisations provide mobile apps to employees, despite the business and productivity benefits.

For example, UNITE, a leading UK operator of purpose-built student accommodation, introduced an app for its facilities maintenance team, allowing them to update and view information about maintenance jobs. The app increased the number of completed jobs by 30 percent.

In many ways, it has been a lost mobile decade for British businesses, which have been slow to embed mobile-enabled processes and practices into the fabric of their organisations.

While some businesses cite barriers to truly embracing mobile, some – worryingly – still don't even see its potential for unleashing the workforce and unlocking growth.

For many businesses, it is a cultural and organisational transformation that needs to take place – not simply a change in CIO mindset or an activity for the IT and procurement teams. We are approaching a mobility watershed and British businesses need to plan now or risk disruptive change being forced on them.

One of the cultural shifts impacting mobility is the emergence of Generation Y, brought up in a digital age, into the workplace. Gen Y people use six apps per day and spend over two hours on their smartphone on average and flexible working practices are an important factor when they consider employers.

Gen Y hasn't quite yet ascended into executive leadership roles in British businesses, but this will happen within the next decade and lead to a sea change in the way organisations use mobility.
Employees who have options to work in ways that make the location of work arbitrary are able to operate dynamically, innovate more readily and ultimately be more productive and engaged team members.

When equipped with the right tools, employees work and are productive everywhere, anytime – 17 percent while queuing, 8 percent from the beach, half while in meetings.

Of course, work-life balance is also important, but the figures show how productivity improves when mobility frees employees from the shackles of a culture where the workplace is seen a specific building or set location.

Employee expectations for mobility will only continue to grow as consumers become more and more sophisticated users, as mobile device penetration increases and connectivity becomes faster.

Powering mobile Britain is about trusting and empowering employees to meet their responsibilities in more flexible and productive ways. More than technology, it is about creating a culture of mobility throughout the organisation.

I'd be interested to hear how this post reflects your businesses' approach to mobility – wherever you are in the world. Is your business ready for the mobile revolution?

Leadership Continuum

Decisive: People generally say they like “buck-stops-here" type leaders. They’re tough-minded. They take charge. They don’t dither, delay and delegate to less decisive peers. And they get stuff done.

 

But to some, leaders who decide too fast or firmly can feel impetuous and dismissive. They often miss the chance to let more knowledgeable subordinates make the call, and can seem to ignore the data in favour of their own instincts. The consensus of the team may not count for much. So, what’s decisive for some is primitive for others.

Discerning: People claim they like leaders who can distinguish between the essential and the optional. When Steve Jobs returned to Apple in 1997, he famously “put a bullet in the head” of many legacy products in order to focus on developing Macs and iPods. Being able to separate the wheat from the chaff was at the heart of his genius.

What some call discerning, however, others find judgmental, biased or mercurial. Jobs wasn’t known for being a big fan of compromise or the focus-group mentality. It turns out that what’s discerning for some is narrow-minded for others.

Visionary: Most people say they want to work for visionary leaders – the ones who see where the world is going before others do. For them, the ability to see around corners beats the plodding, pragmatic approach some people associate with professional managers.

But others see great virtue in plodding. They prefer the slower pace of hard, thoughtful work as part and parcel of getting stuff done that stays done. Visionary leaders can be impatient with on-the-ground detail and with the granular nature of execution. But people who specialize in “cutting down the trees” might not always want to think about what the forest looks like from altitude. So, what’s visionary for some is just “head-in-the-clouds” for others.

Authentic: We often say we want our leaders to be genuine, transparent, humble, and self-aware -- people who are approachable, who make us feel comfortable, and whose feedback we appreciate as much as they welcome ours.

Others see this kind of openness as vulnerability -- and from there, it’s a short hop to weakness. People feel they can spot a leader who's trying too hard to be real, and who may instead come off as less than secure. Authenticity, like all of these qualities, is in the eye of the beholder.

Collaborative: Everyone says they like leaders who believe the “best idea wins.” They’re often the ones who create environments where people don’t feel competition for attention or credit, and can play off of each other to achieve common goals.

For some, though, a cousin of paralysis by analysis is strangulation by collaboration. Too many cooks, too many chiefs, too many committee-designed camels. Collaborative leaders run the risk of turning every decision into a political poll, wasting the group’s energy and bleeding it of momentum. What’s collaborative for some may be political for others.

Inspiring: Most of us like leaders who are great storytellers – they make grand plans seem doable, and give us a path to get there. This line of sight to the big goal gives people a tangible, motivating and exciting vision they can work toward.

But anecdotes are anecdotes, and facts are facts. Leaders who rely on war stories alone can lose credibility fast. They lose the sort of underpinning that comes from logic and data when they always seem to turn instead to a great story. That story can turn into a fantasy no one has the courage to wake them from. One person’s inspiring leader, therefore, may be another’s blowhard.

Intelligent: Good leaders tend to be pretty sharp. The best ones both know their industries and the street smarts to make things happen where the most brilliant theorist might get stuck.

But a leader who comes off as “the smartest guy in the room” can turn people off. For one thing, they may be reluctant to surround themselves with even smarter people – the ones who can help them avoid making bad decisions, and make good ones better. People who spend their energy proving how smart they are can alienate others in the process. One person’s smart may be another person’s smart aleck.

Every leadership challenge calls for different strengths, and every leader’s strengths will attract different supporters. Knowing the mix of leadership qualities that appeal to you, and that you want to develop in yourself, will help you find the right people and the right path to growth and success.

Leader Versus Manager

Managers give answers, leaders ask questions

Shouting orders at your staff will turn them against you. Instead, ask your employees this: “What would you do?” or “What do you think of this idea?”

By allowing people to participate in the decision-making process, you’ll transform what could have been an order into something more easily swallowed. This type of questioning will also inspire creativity, motivation, and autonomy in your staff.

 

Managers criticize mistakes, leaders call attention to mistakes indirectly

Pointing out your employees’ mistakes directly will only leave them feeling embarrassed and frustrated. Effective leaders give their employees the chance to learn and grow letting them address their mistakes themselves.
 

For example, say a project was sent to a client and you receive a disgruntled message in return. Calmly ask your employee about the clients’ concern and whether they feel what was provided was on par. This gives them a chance to provide input and understand what needs to be improved for the future.

 

Managers rarely praise, leaders reward even the smallest improvement

Praise is a must when it comes to effective leadership. Finding time to recognize your employees for even the smallest accomplishment will only increase their interest in what they do. Providing regular feedback and recognition is certain to show your employees you genuinely appreciate their efforts.

 

Managers focus on the bad, leaders emphasize the good

This really comes down to seeing the cup half empty or half full. Only tuning into the flaws of a project or an employee doesn’t leave room for learning or improvement. Become a stronger leader by creating a sandwich effect: Start with some form of praise, follow with the criticism, and end with praise.

 

Managers want credit, leaders credit their teams

Poor managers are always the first to take credit for positive praise; effective leaders understand the importance of crediting their team for the big wins. This pays off in the long run by establishing a more positive company culture where employees are driven toward more successes as a team.

 

Takaful Ikhlas Progress

Takaful Ikhlas Sdn Bhd will focus on group insurance schemes in efforts to educate more Malay clients on the importance of Islamic insurance policy and protection coverage.

President and Chief Executive Officer Ab Latiff Abu Bakar said the Islamic insurance penetration rate by the Malays in the country was only 12 per cent, a very small percentage as compared to the population.

"Of the 88 per cent of the Malay market for Islamic insurance protection which have not been penetrated, we are aiming to secure up to 10 per cent next year, driven by would-be-launched new group schemes and existing group insurance policies. We are targeting RM10 million returns in the next five years from our group insurance schemes."

Ab Latiff said Takaful Ikhlas was also confident of netting RM2 million worth of sales this year from RM1.5 million last year, aided by the appointment of more agents, up to 50, and improved marketing strategies.

He said the Islamic insurance industry, particularly the Malaysian Takaful Association, must play its role to eduate the people who think that Islamic insurance and conventional insurance schemes are the same.

"The most important aspect is the product itself and the way we present and promote to potential clients. The insurance business is about reaching out to the masses. The products that we sell must be reasonable in terms of price and are affordable by the people.

"One of our strategies at Takaful Ikhlas is to come up with reasonable and affordable group insurance schemes that can be sold to target groups, be they cooperative members, trade unions, associations and affiliated bodies," he said.

Ab Latiff said the awareness on Islamic insurance schemes would serve as an "eye-opener" for the very small contribution of group Islamic insurance schemes to the company's overall financial results.
We launched three products recently basically to tackle the non-muslim customers as they accounted for only seven per cent from our 1.7 million policyholders. We have about 30 non-Muslim policyholders including agents sitting for qualifying examination before they can perform their duties.

"We are aiming for 100 non-Muslim agents by the end of the financial year (March 31, 2014) and we target to open 5,000 new policies from non-Muslim clients through the agents. We will explain to non-Muslim clients that the Islamic insurance is good for them as the investment is very stable. We will not invest in high-risk counters," he said.

The recently launched three insurance schemes were the first three products specially designed for non-Muslims, he said, adding that two more such schemes would be launched next year. The new schemes will focus more on entrepreneurs and small and medium enterprises.

"These schemes will have no returns or dividends, only protection. Takaful Ikhlas may become the first Islamic insurance company to introduce such an insurance scheme in the country," he added.

Prudential BSN Takaful - Surplus

Prudential BSN Takaful Bhd (PruBSN) has announced a distribution of surplus to its certificate holders in respect of the financial year 2012.

In a statement by the insurance company yesterday, Pru- BSN said its eligible customers will receive a proportionate rate from the surplus of the Tabarru fund that is the pool of funds contributed by participants and also proceeds from the investment of the Individual Special Account (ISA), which is the certificate holders’ savings account.

“Close to 300,000 entitled certificate holders of the company’s ordinary family takaful plan, from a range of their innovative products, namely ummah, crisis cover, protect plus, and mortgage reducing term takaful will receive their share of the surplus from the Tabarru funds amounting to RM7.5 million,” it said in the statement.

At the same time, PruBSN said it will also be distributing RM11.3 million of investment profits to about 486,000 eligible participants.

“While thanking our customers for subscribing to our market leading innovative products and solutions, we look forward to their continued patronage in the future. We know PruBSN will not be the leading takaful operator it is today were it not be for the support of our customers.

“We shall continue to manage our finances and the Tabarru funds prudently and ensure that the distribution of surplus is made fairly, reflecting the Shariah principles of equitability,” PruBSN CEO Azim Mithani said in the statement.

PruBSN today protects and serves over 500,000 customers which is nearly 2% of the total Malaysian population.

Takaful Insurance At Crossroad

Steven Dewhurst, partner at DAC Beachcroft, suggests some regulatory action is needed to help tighten up the takaful market.

The Inland Revenue and Stamp Duty Legislation (Alternative Bond Schemes) (Amendment) Ordinance is not the flashiest title you could give a new piece of legislation, so it is perhaps understandable that its arrival in Hong Kong went largely unnoticed outside of the territory. Yet this obscure law, which puts the taxation of sukuk (Islamic bonds) on a level footing with conventional bonds in Hong Kong, marks a significant effort by the Hong Kong Government to promote the development of a sukuk market in the territory.

Hong Kong is not alone in seeking to position itself as a centre for Islamic finance. Stellar growth rates (albeit from a low base) have led to jurisdictions jostling for regional or global prominence.

Behind the hype, however, a more complex picture emerges. Last year's decision by HSBC Amanah to scale back its Islamic finance operations points to stellar growth rates failing to translate into a viable commercial proposition (in HSBC's case, the challenge lay in some markets being considered too small to justify continued operations). The point is that success in developing a market for Islamic finance is not just about regulation and tax. Most importantly, it is about ethics, in the form of Shariah compliance.

Banking dominance
Islamic finance continues to be dominated by banking. Insurance (takaful) has received much less attention and its development reflects a degree of neglect. Even in Malaysia, which has the most advanced system of takaful regulation in Asia (if not the world), the picture that exists is one of selective compliance with Shariah principles, aided by ineffective enforcement. Malaysian takaful is at a crossroads, however; a new Islamic Financial Services Act came into effect on 30 June 2013, introducing new provisions dealing specifically with Shari'ah compliance.

The interesting thing about Shariah compliance is that, like corporate governance, it embraces all aspects of a financial institution's commercial activities. We cannot (and should not) look at takaful as simply an alternative product which is sold to Muslims. Unlike conventional insurance, takaful is first and foremost an ethical proposition, not just a product. This explains why Malaysia's new Islamic Financial Services Act imposes a duty (backed by criminal penalties, no less) for takaful operators to ensure that all aspects of their commercial activities are Shariah compliant.

Takaful operators in Malaysia will surely struggle to satisfy this duty when it comes to looking at product integrity.

Spot the difference
The problem lies in the widespread use of takaful and retakaful contracts which are nothing more than conventional insurance and reinsurance contracts, "re-engineered" by replacing "insured" with "participant" and "premium" with "contribution" (to name two examples). The resulting products are fundamentally at odds with Shariah principles. The scale of this problem implies that it is simply a matter of time before Bank Negara singles out a takaful operator for enforcement, in order to encourage others.

Once it does so, Malaysia will cement its position as a leading global centre for Islamic finance, and its competitors will recognise the primary importance of creating and enforcing a strong ethical framework within which Islamic finance can thrive.

AXA & SingaporePost Alliance

Axa has entered into a partnership with SingaporePost to sell life insurance products in Singapore from January 2015.

Axa has entered into a partnership with SingPost to sell life insurance products in Singapore from January 2015. Axa will be able to sell life insurance products through SingPost's retail network in Singapore starting in January 2015.

Axa has gained exclusivity for marketing, promote, sell and distribute life insurance products through all of SingPost's retail channels.

Glen Williams, Axa Life Singapore's chief executive,  said: "We are extremely pleased with the opportunity to work with SingPost. Our purpose is to bring our worldwide insurance and risk expertise, and provide outstanding insurance protection solutions to more people by leveraging on SingPost's distribution capabilities, on top of our existing distribution channels."

What Is An Entrepreneur

What makes an entrepreneur successful?

Some people believe it's the ability to innovate. However, many startups are refinements of existing business models or improvements on how everyday products and services are delivered.  Being innovative helps, but it's not the deciding factor.

How about access to capital? It's admittedly difficult to start a business if you don't have the money to get it started.  Even so, there are plenty of successful startups that survived on the thinnest of shoestrings for their first few years.

Management skill? Give me a break. Entrepreneurs are famously short-tempered and few have the patience to coach employees.  If they wanted to play politics, after all, they would be working in a big company, not starting something new.

There is one thing and one thing alone that every great entrepreneur absolutely must possess: courage.

And courage is very rare in our world.  Numerous surveys of the population at large have shown that, above everything else, most people value security.

Most people will tolerate just about anything--a bad marriage, an intrusive government, a horrible boss, a job that they hate--if only that thing can make them feel more secure.

It's sad, really.

But entrepreneurs aren't like that.

It takes courage to forego the predictability of a corporate job.

It takes courage to sacrifice your nest egg to your startup.

It takes courage to take the risk of failure.

It takes courage to make your dreams into reality.

And it takes courage--lots of it--to hand over the reins when your startup grows beyond your ability to manage it.

That's why entrepreneurs are--rightly--the true heroes of our modern world.

Stay Motivated

1. Always act with a purpose.
If you don't know why you're doing something, you're making that part of your life utterly meaningless. String together enough meaningless acts in your life and your entire life will be literally pointless--without a point.

Starting every action with a review of your purpose, however, puts everything you do into context. Having a purpose for every act keeps you aimed at your life goals rather than cooling your heels.

2. Take responsibility for your own results.
Most people misinterpret this concept.  They think it means taking the credit when things go well and taking the blame when things go wrong. But taking responsibility is not about blame or credit; it's about what you do next.

If you're responsible for your own results, you take ownership of whatever future that emerges from those results. You continue to move forward towards your goals, even when you encounter setbacks.

3. Don't wait for perfection, just do it now!
Perfectionists are the hugest losers in life because they either expect things to be perfect before they take action or, if they do take action, they can't enjoy whatever happens because it's not the perfect outcome.

The real joy of achievement doesn't come from what you achieve but from your efforts in trying to achieve it. The only thing that's perfect in this world is that you're perfectly free to take action.  Now, as in right now.

4. Eat wisely because success takes energy.
Our civilization currently suffers from a self-induced plague of obesity, caused by the mass consumption of addictive food products that give people life-shortening diseases after first making them listless and drained.

I'm not saying you don't eat the occasional donut. However, if you want the energy to act, the energy to achieve your goals, you need to give your body the kind of fuel that can create that energy. And it's not refined sugar.

5. Surround yourself with motivated people.
Numerous scientific studies have shown that the people around you influence your behavior. They define what you consider "normal" and thereby either bring you up (or down) to their level.

If you hang around people who are energized, purposeful and committed to making a difference in the world, that's what you'll consider "normal."  Being motivated will stop being something that you do and instead become who you are.