Blackberry - Comeback Phone

BlackBerry was the king of smartphones in the early 2000s, dominating the market with its sleek designs and unmistakable physical keyboards. Known for their powerful email capabilities, these devices quickly became a favourite among business professionals and tech lovers alike, symbolizing productivity and style. 

Fast forward just a decade and the brand that once ruled the mobile world seemed to fade into anonymity. What could have possibly happened to this once-beloved icon? Here is the story of BlackBerry's rise and fall in the competitive smartphone industry!

BlackBerry - Founded in 1984 by Mike Lazaridis and Douglas Fregin, BlackBerry initially operated as Research In Motion (RIM). The company made waves in 1999 with the launch of the BlackBerry 850, a device that combined wireless email with mobile communication—a groundbreaking concept at the time. BlackBerry's ability to provide secure, real-time email access revolutionized business communication, making BlackBerry devices a must-have for corporate executives and tech-savvy individuals. 

By the mid-2000s, BlackBerry had firmly established itself as the dominant player in the smartphone market, with a substantial market share. The devices were seen as status symbols, and their popularity skyrocketed, especially among professionals who relied on their email on the go. BlackBerry’s innovative features, such as push email and secure messaging, further entrenched its place in the business world. 

iPhone - crushed the smartphone market The release of Apple's iPhone in 2007 marked a significant shift in the smartphone landscape. Steve Jobs's iPhone had a very user-friendly design and the App Store's vast ecosystem captured consumers' attention, ultimately changing their expectations for mobile devices. As smartphones evolved, consumers began gravitating toward devices with larger screens, touch interfaces, and a broader range of applications. 

However, BlackBerry struggled to adapt to these changes. The company continued to focus on its traditional business model, emphasising security and email capabilities, while neglecting the growing demand for multimedia functions and apps. Their attempts to introduce touch-screen devices were met with mixed reviews, and BlackBerry's lack of a robust app ecosystem meant it could not compete with Apple and Android. 

Why Blackberry lost the smartphone race As the competition heated up, BlackBerry’s market share began to dwindle. By 2013, its share had dropped to just 5.9% according to Comscore. Even so, the company tried various strategies to regain its footing, including partnerships with software developers and attempts to modernize its operating system. However, all of these efforts fell short, and BlackBerry continued to lose ground to its rivals. 

In a desperate move, BlackBerry shifted its focus to software and security solutions, effectively pivoting from hardware to services. This transition marked a significant departure from its original identity as a smartphone manufacturer, leading many to wonder if the brand would ever return to its former glory.

Ignoring Competition - BlackBerry's story involves a perfect storm of fierce competition, a struggle to keep up with changing consumer preferences, and a bold pivot towards software solutions. While the brand may no longer dominate the smartphone landscape, its influence on mobile communication and cybersecurity is undeniable. BlackBerry's journey serves as a cautionary tale for tech companies: in an industry defined by rapid change, staying relevant requires constant innovation and a willingness to evolve. As we reflect on the rise and fall of BlackBerry, we are reminded that even the most iconic brands can fade away if they fail to keep pace with the changing tides of technology!

Poorly Timed Acquisitions

Companies that spent billions on poorly timed acquisitions in recent years are now offloading those assets at knockdown prices. Overpayment was the inevitable byproduct of an era when competition for assets was fierce. 

Years of zero interest rates and pandemic-fuelled deal hysteria sent valuations soaring in hype sectors, often detached from fundamentals. Now, as the zeitgeist demands a sober look in the mirror, companies are trimming excess, dumping underperformers, and opting for brutal honesty over sunk-cost fantasy — even if it means a multibillion-dollar haircut.

Intime - Alibaba Group Holding Ltd announced on Tuesday it’s going to sell Chinese department-store chain Intime to a local apparel group for US$1 billion (RM4.47 billion). The price is around 30% of the company’s valuation when Alibaba bought it during the heady days of 2017. The internet giant, which has largely abandoned its acquisitive ways amid government pressure, said it will book a US$1.3 billion loss on the transaction.

Cyclance - The deal came a day after BlackBerry Ltd said it would divest its Cylance endpoint security unit to software startup Arctic Wolf for US$160 million plus a small amount of stock. That’s a far cry from the US$1.4 billion BlackBerry paid when it agreed to buy the business in 2018. Under BlackBerry’s ownership, Cylance reported substantial losses and its revenue fell over 50%.

Grubhub - The moves show how companies that were major acquirers during the boom times may sober up and regret those purchases only a few years later. Just last month, Just Eat Takeaway.com NV agreed to sell US food delivery service Grubhub for US$650 million, a roughly 90% discount to the price it paid to buy the business at the height. 

companies didn’t properly assess synergies and the expected benefits of some deals were overestimated. Now may be a good time to find buyers for these assets as the merger and acquisition (M&A) market has become active again. Overall M&A volumes have risen 16% this year to US$3.2 trillion. 

These divestments allow the companies to focus on shoring up their main operations at a pivotal time. Alibaba has been working to reignite growth in its Chinese e-commerce division, where it faces fierce competition from PDD Holdings Inc and ByteDance Ltd. Meanwhile, BlackBerry is trying to turn around the company by devoting more attention to its Internet of Things business as well as its secure communications platforms.

Reopening The Gates - Just Eat Takeaway claimed that the market has changed since it bought Grubhub, with competition increasing and sector valuations falling. The sale to Wonder Group Inc represents the “most attractive outcome” and “reflects the current trajectory of the business.

BlackBerry said it’s “incredibly pleased” with the outcome for Cylance, which will help profitability and let it focus on the growth engines in its portfolio.

Companies will continue to pursue divestments of acquisitions that didn’t work out, as markets are rewarding focus and punishing bloated firms. That could provide good opportunities for cash-rich corporate buyers looking for bargains.

Bank Negara Malaysia Intervene Premium Hike

Bank Negara Malaysia (BNM) has unveiled interim measures to help policyholders cope with premium revisions of their medical and health insurance/takaful (MHIT) products, as healthcare costs in Malaysia continue to surge.

The measures, announced today in collaboration with the insurance and takaful industry, come as Malaysia’s medical cost inflation hits 15 per cent in 2024, exceeding both global and Asia Pacific averages of 10 per cent.

BNM Intervention - emphasized the need to address root causes of rising premiums, driven by higher medical costs and increased utilisation of medical services. These interim measures will provide some temporary support to policyholders, but broader health reforms must be expedited.

Under the new measures, insurers and takaful operators (ITOs) will spread premium changes due to medical claims inflation over at least three years for affected policyholders until end-2026.

This is expected to result in yearly premium adjustments of less than 10 per cent for at least 80 per cent of policyholders. For policyholders aged 60 and above with minimum plan coverage, premium adjustments due to medical claims inflation will be paused for one year from their policy anniversary. However, premium increases due to age band changes will be managed separately by ITOs.

The central bank also announced that policyholders who surrendered or whose policies lapsed in 2024 due to repricing can request reinstatement based on adjusted premiums without additional underwriting requirements.

Additionally, ITOs must provide alternative MHIT products at the same or lower premiums for policyholders who wish to switch from their repriced plans. Companies that don’t currently offer such alternatives must make them available by end-2025, with no additional underwriting or switching costs.

Health Insurance Price Hike - Paused

The Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and Persatuan Insurans Am Malaysia (PIAM) today announced interim measures to support policyholders and participants impacted by the recent premium and contribution repricing.

In a joint statement, the associations said these measures aim to ease the financial burden on policyholders and participants so that they can continue to be covered by medical and health insurance or takaful (MHIT).

Earlier today, Bank Negara Malaysia (BNM) announced interim measures to help manage the impact of MHIT premium adjustments, with insurers and takaful operators (ITOs) to spread out the changes in premiums over a minimum of three years for all policyholders affected by the repricing.

Interim & Temporary Measure - According to the joint statement, the interim measures include spreading out future premiums and contribution increases arising from repricing due to medical claims inflation. In addition, it will implement a one-year temporary pause in premium and contribution adjustment arising from medical claims inflation for those aged 60 and above who are covered under the minimum plan within the MHIT products they purchased.

Reinstatement & Alternative - Policyholders or participants who have surrendered or lapsed their policies or certificates due to medical repricing in 2024 will be eligible for reinstatement without additional underwriting requirements. To supplement the interim measures, ITOs will offer appropriate alternative MHIT products at the same or lower premiums for policyholders who do not wish to continue their existing MHIT plans that have been repriced.

Leadership For Success

Here are four human leadership practices you can bank on next year or 10 years from now.

Set your people up for success
Many individuals in management roles often prioritize their own performance over the unique needs of their team members. Success as a leader or manager is not determined by personal achievements but rather by the success of the team as a whole. This leadership style focuses on empowering individuals to excel and fostering an environment where everyone can succeed together.

Invert the pyramid
The concept of servant leadership, which involves flipping the traditional top-down hierarchy, is practiced by some of the largest and most profitable companies worldwide. In a classic organizational structure, the hierarchy resembles a triangle with the CEO at the top, followed by various levels of management beneath. At the top of the inverted triangle are the customers, as serving them is the primary purpose of the company. The customer-facing employees are prioritized and positioned right below the customer, higher in the organization than the CEO. This is the strength of the inverted pyramid. This model works effectively because employees are the ones who interact with customers on a daily basis, so they should be the ones at the top of the list.

Acknowledge your people for their personal accomplishments
As a leader, you may have bought into the idea that praising people for going above and beyond is a good thing for business. It is, and in fact, research confirms this. But try going a step further. Recognize your people not only for their business accomplishments but also for their milestones outside of work, such as birthdays, awards, and family celebrations.

Grow your people
The best companies of those I have tracked for nearly a decade have consistently stood apart for their efforts to help employees reach their full potential. This trend is still true today as technology continues to advance. Development opportunities aren’t limited to high-potential employees. At the best companies, employees across roles have access to real-time feedback and growth opportunities, enabling them to reach their potential and become even more effective at their jobs.

Australia Health Phoenixing

Private health insurers have been warned they will be named and shamed unless the industry cleans up its act and stops using secretive, "underhanded" tactics to increase premium prices.
The Commonwealth ombudsman has found insurers are frequently engaging in so-called phoenixing - a loophole-exploiting practice of ending a product, only to replace it with a near-identical service with a much higher price not long after.

Phoenixed - In one case, an insurance premium increased by 21 per cent in the space of a year after it had been phoenixed. If two members of the same fund with essentially the same product are paying prices that might be 20 or more per cent different because of this phoenixing practice, you'd have to describe that as price gouging.

The ombudsman investigation came after consumer group Choice first reported on the practice in February and found some insurers had increased prices by up to 47 per cent over three years. Any private health insurance price increases must be approved by the minister, and while phoenixing isn't illegal, Butler said it was "clearly against the spirit of the law".

It is an underhanded, largely secret way of health insurers raising their prices outside of the usual approval process. The practice was widespread across the entire industry, particularly in relation to "gold" products, which was the only option Australians had to access products like maternity and major surgery cover.

The government would change the law to make phoenixing illegal, and name and shame insurers, unless the industry stopped the practice. The warning comes after Australia's 29 private health insurers submitted their price increase proposals for next year in November.

Kodak Fatal Mistake

The name "Kodak" may not mean much to you today, but it was once synonymous with photography. It then became synonymous with the company that "killed itself," offering a painful lesson to any business that goes out of business due to its own mistakes.

Fatal Mistake - It was the company's decision not to invest in the field of digital photography, even though it was technologically advanced and could have given it an edge over the competition, but this became one of the biggest business mistakes in history. A big mistake followed by several smaller ones.

It was this company that made the first automatic camera in the early 20th century, making photography a hobby for many people instead of a professional activity. It even managed to get women into the photography "game", introducing. The "Kodak Girls" were dynamic and independent, but of course they were also good wives and mothers.

Even in times when marketing was not as sophisticated as it is today, Kodak had managed to convince consumers that it was the ideal company, that is, the only one that could capture their memories. The “Kodak moment” was synonymous with family happiness.

$30 Billion Giant - By the mid-1970s, the company was worth more than $30 billion, the largest in the photography industry. It had a near-monopoly on the worldwide sale of film and cameras. They made up to $15 on each roll of film, a sum of money that no one could afford to throw away.

On the business side, everything seemed to be going well for the company. In 1975, Steve Sasson, an engineer working for the company, invented a camera that didn’t need film. The image was recorded digitally, but of poor quality. The machine was clumsy and heavy, but it was clear that it had a future.

“Okay, but don’t say it anywhere,” was more or less the company’s response to Sassoon’s invention. The problem with his invention was that it directly threatened Kodak’s business model. For many years, the company continued to display an idiosyncratic denial about the prospects of digital photography.

This remained the case even when, in the early 1980s, Sony, one of its competitors, released a filmless camera. Kodak then requested an internal investigation into the industry's prospects and whether the classic model was in danger. The investigation showed that digital had the potential to replace film, but Kodak had a decade to prepare for the change. Ultimately, despite having a long lead, Kodak did almost nothing to take advantage of it.

Instead, the company tried to use digital to support film. In the mid-1990s, it went so far as to invent a hybrid of digital and analog cameras. The photos had to be printed in a lab, so as not to lose film sales. Naturally, the venture failed.

Digital Advance - Kodak executives in the 1980s and 1990s were extremely reluctant to consider replacing film with digital. As has been analyzed many times in marketing theory, they failed to find where digital “fit” into their operating model. Again, they did not get into the mindset to pioneer digital film as well.

They thought consumers would never part with the ritual of developing film and that the digital camera eliminated that need. Along the way, the quality of digital surpassed that of analog film, not to mention how cell phones became incredible cameras as well.

As digital cameras became devices, they were sold wherever you could find electronics, not just in the photography line that Kodak controlled. Gradually, the company lost its “field” and was forced to play in what its competitors had shaped.

But it also lost another audience it had built up over the years, women. The main users of digital photography were now men who had (and still have) a less developed logic than those who record beautiful family moments.

In 2007, Kodak was worth $140 million, as a small shop in the photography industry, so its bankruptcy in 2012 was the culmination of a predetermined course.

If anything can save classic film, it's only fashion that comes and goes. A little perspective, a little curiosity, and perhaps a little "hipsterism" and a romantic return to the old days, the demand for film and classic cameras (even second-hand ones) has started to grow in recent years.

Nippon Life Buys Resolution Life

Nippon Life Insurance Co agreed to buy Resolution Life Group Holdings Ltd for about US$8.2bil, the biggest takeover by a Japanese insurer as it seeks to grow beyond the domestic market. Japanese life insurers are renewing their appetite for acquisitions at home and abroad after a lull following a string of multi-billion- US dollar deals a decade ago.

Nippon Life, the nation’s largest insurer by assets, is trying to diversify its profit drivers as the local market faces demographic challenges that are hindering growth prospects. Nippon Life will buy the 77% of Resolution that it doesn’t own, the Japanese company said in a statement yesterday. The deal will be funded by cash and is expected to be completed in the second half of 2025, pending regulatory approvals.

It will also purchase a 20% stake in its Australian unit MLC Ltd from National Australia Bank Ltd for about A$500mil to make it a wholly owned subsidiary, which it plans to merge with its Resolution Australasian arm.

Formed in 2003 by chairman Clive Cowdery, Resolution Life acquires and manages portfolios of life insurance policies. It invests the assets and makes payouts when there are claims or policies mature. The Bermuda-based company has operations in markets including Britain, the United States, Australia and New Zealand. 

Blackstone Inc is among shareholders selling stakes in Resolution Life, though they will continue their strategic partnership. The alternative-asset manager has had a role investing the insurer’s assets in areas including private credit, real estate and asset-backed finance.

The deal comes on the heels of another large investment abroad by Nippon Life, which completed the acquisition of a 21% stake in Houston-based Corebridge Financial Inc for US$3.8bil from American International Group Inc this week.

Nippon Life has long been the subject of speculation as a buyer of multi-billion assets in the US, where rival Japanese insurers have already made big acquisitions.

Dai-ichi Life Holdings Inc struck a deal in 2014 to buy Protective Life Corp for more than US$5bil. Sumitomo Life Insurance Co and Meiji Yasuda Life Insurance Co also acquired US insurers around that time.

Court Sided With Aggrieved Car Loan Customers

A cloud of anxiety was hanging over the British Motor Museum. Attenders of the Financing and Leasing Association’s annual motor finance convention in Warwickshire last month had spent weeks trying to get to grips with a shock court of appeal decision that sided with two aggrieved car loan customers.

Secret Commission - In October (2024), that judges ruled paying commission to the car dealers who had arranged the loans, without disclosing the sum and terms of that commission to borrowers, was unlawful. But what judges deemed to be “secret” commission arrangements had actually been standard practice across the industry, and within City rules, for years.

Lenders started to panic. The ruling had opened the door to a fresh flood of claims – not just from borrowers, but a voracious claims management industry that had been waiting for a payment protection insurance (PPI)-style consumer scandal for years. And it was not just car loans that could be affected by the court ruling: finance on everything from sofas to new kitchens could be in scope.

Possible Misconduct Bill - £25bn,With the rating agency Moody’s forecasting a compensation bill of up to £30bn and the Bank of England predicting a misconduct bill of up to £25bn, claims companies and specialist law firms – including Bott and Co, Courmacs Legal, and The Claims Guys – could be in line for a massive payday. And investors, including UK and US private equity firms, are hoping to pile in.

The bulk of the FLA convention was dedicated to the ruling and its potential fallout. “It wasn’t the elephant in the room – it was topic number one on the agenda."

Claims management companies (CMCs) found their footing in the UK in the early 2000s, filing compensation claims on behalf of consumers, often on a “no-win no fee” basis. The catch for consumers? Having to shell out a 40%-plus cut of any payout.

With a penchant for car accident and work injury claims, the reputation of CMCs as ambulance-chasers grew. But the burgeoning industry truly hit its stride in the wake of a judicial review in 2011 that set mass payouts over the PPI scandal in motion.

CMCs filed reams of PPI complaints on behalf of customers between 2011 and 2019, and made £3.8bn to £5bn in the process. It prompted fiery criticism from high street banks, which alleged that CMCs had also been in the business of filing spurious and low-quality claims, and taking advantage of consumers who could easily have filed complaints on their own.

The former Barclays chair John McFarlane said in September 2018 that the percentage of dishonest claims had been “enormous”. He accused the government of being “complicit” in the decline of UK banks by allowing a compensation culture to develop in Britain. The PPI scandal, he said, had turned “portions of Britain into fraudsters”.

While his comments against everyday Britons were condemned by the likes of the consumer champion Martin Lewis, McFarlane’s concerns about CMCs were shared by regulators.

20% Capped Commission - Earlier that year, the City watchdog started to clamp down, setting a 20% cap on commissions for PPI claims months before taking over regulation of the sector in spring 2019. The Financial Conduct Authority (FCA) set higher standards for CMCs and, by 2022, capped commissions for non-PPI claims at almost 30%.

The FCA fee cap put further strain on CMCs’ profits, which were dwindling as the PPI gravy train dried up. Some firms collapsed, while others re-emerged as claims law firms (CLFs), meaning they fell outside the FCA’s remit.

Mis-selling - Claims law firms are supervised by the Solicitors Regulation Authority (SRA), which, for a few years, gave firms scope to charge higher fees than their CMC counterparts. But as the motor finance commission scandal started to gain pace last year, the SRA’s lighter-touch approach came under scrutiny, prompting the authority to introduce an FCA-style cap on financial services mis-selling claims in July this year.

A caveat, however, means any legal firms pursuing claims through the courts, including over motor loans, can still charge fees of up to 50% on any winnings. But claims law firms say they can secure substantially higher payouts for consumers than if they file complaints on their own or through a CMC.

Regardless, the chance to again file claims en masse, PPI-style, mean the claims companies are back to playing a volume game. And that is already prompting further interest from onshore and overseas investors, including venture capital and private equity firms.

The claims law firm Courmacs, which launched in 2021 and is backed by the UK private equity funder Eram Capital, said it had been fielding more investor queries in recent months, as its book of motor claims surged to 1.4 million.

FLA Scrambling  – which represents car lenders ranging from big banks such as Lloyds and Barclays to the finance arms of carmakers including Ford and Volkswagen – has been scrambling for a solution that could help ease the pressure on its members. It raised concerns over CMCs and CLF claims during emergency calls with the Treasury and regulators after the court of appeal ruling, and eventually secured some temporary relief.

The FCA is now proposing to scrap an eight-week deadline for lenders to respond to customer complaints, and giving them until at least May – and potentially December 2025 – to issue final decisions.

But while a deadline for responses has been kicked down the road, lenders are still legally obliged to acknowledge each complaint in a way that can be easily passed on to consumers. And court claims, which are outside the FCA’s powers, are still flowing into motor lenders including Lloyds, Santander UK, and the court of appeal defendants Close Brothers and the MotoNovo owner FirstRand.

Lloyds - which is most exposed among UK banks to the motor finance scandal due to its £15bn Black Horse car loan division, has been fighting fire with fire, sending about 200,000 individual paper letters in response to legal claims filed by Courmacs, prompting criticism from the law firm.

Charlie Nunn, the boss of Lloyds, recently said that the legal ruling had left consumer finance companies with an “investability problem”, and that the judgment was “at odds with the last 30 years of regulation”. Skirmishes are likely to continue across the motor lending industry until the court of appeal case, likely to take place next year, is heard at the supreme court.

Public Bank Buys LPI Capital

Malaysia’s second-largest lender by market value is buying a 44.15% stake in LPI Capital from the family of its late founder (Teh Hong Piow) for 1.72 billion ringgit ($400 million).

The bank will pay 9.80 ringgit for each LPI Capital share held by Teh’s family and their investment vehicle Consolidated Teh Holdings, representing a 25% discount to the last traded price of Lonpac Insurance’s parent before trading was suspended on Wednesday. The transaction will require Public Bank to buy the rest of LPI Capital. PBB shares dropped 4.8% to 4.35 ringgit, while LPI shares slipped 3.2% to 12.58 ringgit.

The proposed acquisition represents an opportunity for PBB to further expand its general insurance segment through the LPI Group’s platform. The deal would also help the lender achieve its goal of becoming a universal bank offering comprehensive financial services to its customers.

Separately, the estate of PBB’s late founder (who passed away in 2022 at the age of 92) plans to sell a portion of their shares in Public Bank shares over a five-year period, his daughter, Teh Li Shian.

The family, along with its investment firm Consolidated Teh Holdings, owns about 22% stake of the bank. That accounts for the bulk of their net worth of $5.4 billion, making them the third richest family in Malaysia, according to the list of Malaysia’s 50 Richest.

Recruit, Train & Grow

Life Insurance career is not exciting. Fortunately - insurtech has changed that perception as new technologies have offered opportunities for new recruits to innovate, bring ideas to market and transform outdated thinking.

A new survey of respondents working in UK financial services businesses has identified the key investment areas for UK financial services businesses looking to attract, retain, and develop top talent.

The research found that while 70% of respondents agreed that their organization has a positive supportive culture, 63% felt that more encouragement was needed to attract younger people to the financial services industry.

The research also found that the top challenge when attracting top talent was meeting/exceeding salary. Other key challenges relating to retaining and developing talent included offering a balance between remote and on-site work (38% of senior leaders citing it as a challenge), offering comprehensive benefits packages (36%), demonstrating clear career development opportunities (35%) and caring for employee mental well-being (33%).

The digital skills gap was another area of focus for the survey, which found that while 65% of those in middle management (or lower) positions believe they have sufficient digital skills to excel at their job, 63% of senior managers believe lack of digital skill is an issue in their workforce, with 30% describing it as ‘a very serious issue’.

High proportion of managers have identified the need to attract younger talent to the sector shows that this is an ongoing and urgent challenge. Financial services organizations must be able to compete with other industries to attract the most talented individuals. As such, they need to have strategies in place not only to recruit younger colleagues in the first place but to develop and nurture them effectively, paving the way for a new generation of senior leaders.

Former Insurance Agent Duped Customer

A former insurance agent duped a man into transferring more than $543,000 to him over 35 occasions from March 2018 to March 2019 was sentenced to two years and eight months’ jail on Dec 9.

Investment Opportunity - Andrew Tiew Siew Ing, 44, who had managed to convince the victim to take part in an “investment opportunity” that did not exist. Tiew, whose employment with an insurance firm was terminated in May 2018, has since made more than $16,000 in restitution to the 44-year-old victim.

The scammer was working as a bank relationship manager when he got to know the victim’s mother, who became his customer. He later joined an insurance firm, and he told the woman’s son in January 2018 about an “investment scheme” linked to insurance policies.

Tiew claimed that he was working with a team at another insurance firm and that the scheme provided “good returns”. According to him, the scheme involved creating insurance policies using the names of fake clients.

Incredible Returns - The accused informed the victim that the investment opportunity would provide the victim with returns of between 10 per cent and 40 per cent on the sums invested.

The victim knew from the accused’s representations that the investment schemes required creating insurance policies with fake credentials. But he nevertheless agreed to participate in the investment scheme, as it guaranteed high returns for him.”

This “investment opportunity” did not exist, and the unsuspecting victim later transferred more than $543,000 in total to Tiew. In 2019, Tiew cheated the victim of another $30,400.

This time, he claimed that he needed money to process the sale of his properties in Malaysia, and that the funds raised would purportedly be used to repay the victim’s “investment monies”.
But Tiew did not own any properties in Malaysia, and he instead used the ill-gotten gains to gamble at the Marina Bay Sands casino.

Believing the lies, the victim transferred the $30,400 to Tiew over five occasions between April and June 2019. The victim alerted the police in May 2020.

UnitedHealthcare Fatal Shooting

For years, patients in the U.S. health care system have grown frustrated with a bureaucracy they hardly understand. Doctors are included in an insurer’s network one year but not the next. Getting someone on the phone to help can be next to impossible. Coverage of care and prescriptions is often unceremoniously denied.

Shooting of CEO - This week’s fatal shooting of UnitedHealthcare CEO Brian Thompson has unleashed a wave of public feeling — exasperation, anger, resentment, helplessness — from Americans sharing personal stories of interactions with insurance companies, often seen as faceless corporate giants.

In particular, the words written on ammunition found at the shooting scene - Delay, Deny and Depose - echoing a phrase used to describe how insurers dodge claim payouts — amplified voices that have long been critical of the industry.

Studies on patients accessing health care sees frustration with the system build for years. Costs are rising, and insurers are using more controls such as prior authorizations and doctor networks to manage them. Patients are often stuck in the middle of disputes between doctors and insurers. Patients are already spending a lot of money on health care, and then they’re still facing problems with the service.

Insurers often note that most of the money they bring in goes back out the door to pay claims, and that they try to corral soaring costs and the overuse of some care.

Man Fake Death For Insurance

A US man by the name of Ryan Borgwardt, who went missing in August while kayaking, is alive and well in Europe, authorities from his home town in Green Lake, Wisconsin alleged
Borgwardt, 45, was last seen on August 12 at Green Lake during a solo fishing trip, and his family reported him missing after he failed to return home.

A search-and-rescue operation found his capsized kayak, life jacket, and personal items, but the father-of-three’s body was never recovered, prompting authorities to widen their investigation.

In October, investigators discovered Borgwardt’s name had been flagged by Canadian border officials on August 13, the day after he was reported missing. Further investigation revealed that Borgwardt had reported his passport lost or stolen, and had received a new one before his disappearance, suggesting he may have used it to travel abroad.

A digital forensic analysis of Borgwardt’s laptop uncovered that he had taken out a US$375,000 (RM1.7 million) life insurance policy, transferred money to a foreign bank account, and altered his email address before vanishing.

Authorities also found that Borgwardt had replaced his laptop’s hard drive and cleared his browser history on the day of his disappearance. The sheriff’s office believes Borgwardt may be in Eastern Europe and is continuing to investigate the case, including potential charges of fraud and obstruction.

Man Pushed Wife Into Sea To Claim Insurance

A man in China was sentenced to death after pushing his wife into the sea from a ferry and attempting to claim her life insurance compensation to pay off debts and finance the use of prostitutes.

The case of the husband, 47, surnamed Li, was reported by China’s state broadcaster CCTV on November 21. He received the capital punishment for intentional homicide from the Liaoning Higher People’s Court in December last year. However, it remains unclear whether the sentence has been carried out.

On May 5, 2021, while travelling on a ferry from Dalian in northeastern China’s Liaoning province to Yantai in eastern China’s Shandong province, his wife, also surnamed Li, fell over the railing into the sea. The police discovered her body after a 45-minute search. Upon hearing of his wife’s death, the husband appeared paralysed, sitting on the ground in shock.

Although he claimed the incident was accidental, police grew suspicious because the location where the victim fell was in a blind spot of the ferry’s surveillance system, which consists of over 200 cameras.

Health Insurance Premium Hike - Malaysia

The insurance industry has expressed its commitment to stagger increases in medical insurance premiums and offer flexible payment plans, amid public backlash towards rising premiums.

Rising Cost - The Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA), and Persatuan Insurans Am Malaysia (PIAM) blamed an “unprecedented” cumulative medical claims cost inflation of 56 per cent from 2021 to 2023. This surge, driven by various factors such as the rising costs of medical treatments, advanced health care technologies, and increased utilization of health care services, has made premium repricing an unavoidable measure.

The joint statement by LIAM, MTA, and PIAM cited several factors driving medical inflation, such as the rising cost of advanced medical equipment and innovative treatments; increased utilization of health care services (including post-pandemic treatment and elective surgeries); escalating costs in private hospitals; high prevalence of chronic diseases like diabetes and obesity; and higher demand for medical care from an ageing population.

Contradictory Statement - Contrary to the insurance industry’s claim that it would “stagger repricing adjustments”, many people with health insurance have already either been charged higher premiums or received notices on an increase in their premiums.

Despite LIAM, MTA, and PIAM purporting that health insurance premiums are only reviewed every three years, there have been cases of insurers raising premiums every year.

Solutions - Since last September 1, BNM required all insurers/ takaful operators (ITOs) offering medical and health insurance and takaful (MHIT) products to offer at least one product with a minimum 5 per cent copayment and/or an RM500 deductible. Any new medical reimbursement insurance/ takaful product designed must come with the minimum 5 per cent copay.

In addressing the impact on policy owners/takaful participants, BNM has required ITOs to review their current repricing strategies for more reasonable implementation of such repricing. This includes managing increases in premiums/contributions over time, taking into account the impact on policy owners/takaful participants. In addition, ITOs are required to offer viable options for policy owners/takaful participants who are significantly impacted by the higher premiums/contributions to continue having insurance/takaful coverage.

Greater take-up of copayment MHIT products over time aims to help contain medical cost inflation in Malaysia by controlling the over-consumption of health services, alongside other health care reforms envisaged in the Health White Paper published by the government.

Sony Financial Group Acquire JustinCase

Sony Financial Group, a major player in the property and casualty (P&C) and life insurance markets, has announced the acquisition of Japanese InsurTech startup JustinCase. The acquisition will enable Sony Financial Group to expand its offerings in the small-amount, short-term insurance market.

While the financial details of the deal have not been disclosed, the move underscores Sony Financial Group’s ambition to enhance its portfolio and meet growing consumer demand for flexible and accessible insurance solutions.

JustInCase - founded in 2016, specialises in providing on-demand insurance products tailored to consumer needs. Its offerings include unique short-term options such as one-day injury coverage and one-night hospital insurance, making it a standout in the InsurTech sector.

The company has raised approximately $11m in funding to date, which has supported its mission to make insurance more adaptable and user-friendly.

Sony Financial Group operates across various insurance domains, including P&C and life insurance.

By integrating JustInCase’s capabilities, the group aims to diversify its services and address changing consumer preferences, particularly in the niche of short-term, small-amount insurance policies.

This acquisition reflects Sony Financial Group’s strategy to adapt to the evolving insurance landscape and position itself as a leader in innovative insurance solutions.

This strategic acquisition also signals Sony Financial Group’s focus on responding to modern consumer needs in Japan and potentially expanding its footprint in global markets.

Indonesia To Counter Medical Inflation

To counter high medical inflation, the Financial Services Authority (OJK) is planning several initiatives for the health insurance market in Indonesia. Due to rising healthcare costs, health insurance claims are already greater than the premiums received, with the loss ratio exceeding 100%. This means that health insurers pay out more money on customers' medical claims than they receive in insurance premiums from policyholders.

OJK’s proposed measures are to:
1: form a medical advisory board that will provide insurers with input on managing services from the medical aspect and in providing input for partner hospitals

2: continue to encourage the strengthening of digital capabilities in the health insurance ecosystem, such as sharing of data with hospitals; increasing the capabilities of medical personnel to analyse data and provide input to hospitals

3: encourage insurers to review existing products that suit customer needs and ensure adequate risk management.

4: encourage insurers to continue to conduct regular public education through digital channels to promote a healthy lifestyle.

Regulation
The OJK said that a circular on improving health insurance processes will be issued next year. This will set out the standards and limits of health insurance benefits that can be claimed.

OJK had collaborated with the Indonesian Ministry of Health to formulate policies to improve the health insurance ecosystem. The moves are being made to implement the Coordination of Benefit (CoB) mechanism that regulates the total health insurance benefits received by an individual who has health insurance policies with more than one insurer.

Under this mechanism, individuals first receive health insurance benefits provided by the BPJS Kesehatan, the social security agency that manages the National Health Insurance scheme. Additional health insurance can be provided as a supplement to BPJS Kesehatan coverage.

The first stage of health insurance benefits remains at BPJS, then to additional health insurance. That is already underway.

Chinese Invests in Indonesia

Indonesia, with its youthful population, burgeoning economy, and rapidly expanding digital landscape, presents an irresistible opportunity for Chinese brands seeking to escape slowing growth and fierce competition at home. Indonesia's allure is multifaceted. Its population of over 270 million, predominantly young adults, fuels a dynamic consumer market. With a median age of 28 to 30, this demographic dividend is further amplified by robust economic growth, consistently exceeding the global average at 5% GDP growth. 

Lower labor and rental costs compared to many other Southeast Asian markets add to its cost-effectiveness. Crucially, with over 185.3 million internet users, internet penetration stands at over 66%. With over 185 million internet users at the start of 2024, a digitally savvy consumer base is readily accessible through online channels. 

Driven by the faster pace of information, Indonesians are increasingly open to exploring a wider range of brands. This openness has created fertile ground for the influx of Chinese brands. The timing of the ripening of Indonesia as a market was ‘just right’ for many Chinese companies looking to expand outwards due to ferocious competition and slowing economic growth at home, and they started making inroads in the archipelago. 

Today, Chinese companies are everywhere. They have a presence in almost every growing sector—from nickel ore and steel to clothing, smartphones and electric vehicles. Four of every five EVs sold in Indonesia are from Chinese brands such as Wuling, BYD, Chery, and Neta, according to data from the Indonesian Automotive Industry Association (Gaikindo).

Meanwhile, Indonesia happens to be one of TikTok’s most attractive markets, and it entered into a very expensive marriage with Tokopedia to circumvent the government ban in 2023. Retail is another sector China is aggressively wooing as its companies look outward due to ferocious competition and slowing economic growth at home. Indonesia’s retail market was valued at $46.34 billion in 2022 and is projected to reach $71.89 billion by 2031. 

There’s been a noticeable surge of inquiries from China for almost every premium mall landlord in Jakarta in the past year. More than half of the inquiries come from the F&B category, such as Cotti Coffee, Naixue, Jiguang, Mixue, Wallace, and Yao Yao. On the retail side, there are brands such as Huawei, Oppo, Pop Mart, M&G Life, Anta, Vivaia, and HLA. 

The proliferation of several Chinese lifestyle brands in the retail space in Indonesia is an exciting development. A wider choice creates more interest and inevitably generates buzz in the category. Retailers also actively exploring several such brand partnerships and will soon be bringing them to the Indonesian marketplace. From a real estate perspective, we believe there is enough room for everyone to co-exist. Plus, choice brings more footfall to the malls, hopefully benefiting all retailers. 

Miniso - The success story of Miniso One Chinese brand that has managed to carve a niche for itself in Indonesia and can be a case study for brands looking to enter the country is the variety shop Miniso. For Miniso, Indonesia has consistently ranked in the top five of the 111 countries in which the retailer is present in terms of gross merchandise volume (GMV). 

The launch of their largest global store in Indonesia in August 2024, after opening close to 300 stores in seven years, only cements this market’s importance. The world's largest Miniso store opened in Jakarta in August. First-day sales of 1.18 million RMB set a new record. 

As part of its ‘super store strategy’, Miniso opened its flagship store, the largest in the world, in Jakarta’s Central Park Mall. Since entering Indonesia, Miniso has aggressively used IP as a differentiator. In Southeast Asia, particularly in Indonesia, consumers tend to favour Japanese and Korean IPs. 

For instance, One Piece was quickly sold out upon release, and Zanmang Loopy, a Korean animation, has the highest viewership in Indonesia among overseas markets. Miniso has collaborated with the local supply chain in Indonesia, producing many locally sourced items like skincare, cosmetics, perfumes, and fragrances. 

In eight years, Miniso has cracked a supply chain hybrid combination of headquarters and local suppliers, offering over 10,000 SKUs. The retailer is now focusing on opening larger and better stores in Indonesia, upgrading store locations, expanding the product range, and investing in local staff training.

Chinese brands have disrupted the Indonesian retail space. He says that multi-branded retail concepts in Indonesia—both local and foreign—are facing stiff competition from the burgeoning of Chinese brands such as Miniso, which relies heavily on its IP collectables category. 

Health Insurance Premium Hike - Again

Medical insurance premiums are expected to rise between 40 and 70 per cent next year (2025), following notices sent by insurance providers to policyholders citing the rising cost of medical care in private hospitals as the primary reason.

Many users have opted to cancel their medical insurance policies as they can no longer afford the increasing premiums that need to be paid every month. As an alternative, they choose to use insurance provided by their employers or opt to use government hospital services.

The majority of medical insurance cardholders have expressed dissatisfaction and questioned these increases, which they believe are not only burdensome but also unreasonable. A Customer had already received a letter from his insurance company stating that the premium increase would take effect in February next year (2025).

This year (2024), the company has already raised the premium by over RM40. Next year, it will double. I used to pay RM188.47 a month, and now I have to pay RM237.34, even though there was a previous increase last year, from RM157.69 to RM188.47.

Another Customer, said his insurance policy had also increased by RM133, from RM244 to RM377 per month. He has even considered the possibility of stopping the payments in the future.

Meanwhile, Consumers Association of Subang and Shah Alam (CASSA) president Datuk Seri Dr Jacob George said it was not reasonable to increase insurance premiums given the current cost of living.

Bayan Baru member of parliament Sim Tze Tzin said that his office would be meeting not only with insurance companies but also with private hospitals to gather more information.

Perkeso - 24 Hours Coverage

By the middle of next year (2025), nearly nine million Malaysian workers, could enjoy 24-hour Social Security Organisation (Perkeso) coverage. Perkeso's Employment Injury Scheme currently protects employees in the course of their work, but efforts are underway to expand the coverage to all hours.

The government wants to amend the Employees' Social Security Act to provide 24-hour coverage. Right now, many employees come to Perkeso wanting to claim benefits after getting involved in accidents outside working hours. perkeso can't help them because the law doesn't allow it.

Small & Medium Enterprises - More than 95 per cent of companies in the country are micro, small and medium enterprises (MSMEs), and they may not be able to afford insurance benefits for their workers. Once the law was amended, Perkeso would provide 24-hour coverage for all accidents, regardless if they were work-related or not.

Perkeso scheme offers protection (provided lump-sump payments) and also designed for jncome replacement. Example - a member loses a leg at work, Perkeso will compensate the member for 90 per cent of your average last drawn salary for the rest of your life.

Now you only have that coverage if you lose your leg in the course of your work. Once we have 24-hour protection you will always be covered, even if you are injured at home."

The same applies to death benefits, where Perkeso pays a contributor's dependants 90 per cent of the average salary for the rest of their lives and their children until they reach the age of 21.

Round-the-clock protection could be important for those in the private sector as many workers cannot afford to rely on their retirement savings in the event of an injury or disability outside of work.

In November last year, the Finance Ministry revealed that 6.3 million Employees' Provident Fund members under 55 had less than RM10,000 in their accounts.

The 24-hour coverage would require workers to make additional monthly contributions at a quantum to be finalized by the government. The 24-hour scheme would also cover Malaysians injured on overseas work trips.

Thailand - Thonburi Healthcare Group

Boon Vanasin, the founder of Thonburi Healthcare Group (THG), is currently at large in China while his wife and daughter have surrendered to the police in Thailand. Faced with charges of public fraud, 79 year old Jaruwan Vanasin, and her daughter, 51 year old Nalin, turned themselves in to the police and have denied all allegations against them.

The two women chose not to speak to the media when they surrendered. Their lawyer, however, stated that they are denying any involvement in the fraudulent activities attributed to them. They claim their signatures were forged, and they did not sign any cheques related to the alleged schemes.

The Metropolitan Police Bureau secured court approval to arrest 86 year old Boon, along with his wife and daughter. Arrest warrants were also issued for six other suspects involved in the case, all of whom were apprehended yesterday, November 23.

The investigation accuses the suspects of misleading investors in medical ventures promoted by Boon. Additionally, Boon is alleged to have forged his former daughter-in-law’s signature to secure a loan, resulting in damages estimated at 7.5 billion baht. The Criminal Court issued an arrest warrant for Boon on charges of public fraud, fraudulent borrowing, money laundering, and issuing bad cheques.

Similar charges have been levelled against the other suspects. Between December last year and October this year, 527 complaints were filed against Boon at the Huai Khwang police station by victims who were unable to cash the cheques he issued.

Boon leveraged his status as a prominent hospital executive to promote five medical-related projects, including a cancer centre, a wellness centre in Thailand, hospitals in Laos and Vietnam, and a medical intelligence project, attracting substantial investments.

The total investment for these projects exceeded 16 billion baht, with investors being promised 700 million baht in profits for last year and 1 billion baht for this year. Although initial payments were made, subsequent payments were missed, causing turmoil for investors attempting to cash their cheques, according to a source familiar with the investigation.

Police Major General Noppasin Poonsawat, the deputy commissioner of the Metropolitan Police Bureau, revealed that Boon fled Thailand on September 29, travelling from Bangkok to Hong Kong before proceeding to China.

Boon previously clashed with stock market regulators in 2022 for disseminating false information that inflated THG’s share price. In the preceding year, he had also claimed that THG had acquired 20 million doses of Covid-19 vaccines from Pfizer for Thailand, a delivery that never transpired.

Yesterday, November 23, police arrested two women linked to Boon’s network at a law firm in Bang Bua Thong district of Nonthaburi. These women, identified as 38 year old Siriwimol and 53 year old Jidapha, face fraud and fraudulent borrowing charges. A Mercedes-Benz was seized from them during the arrest.

Indonesia Universal Health Coverage Financial Distress

After experiencing slow times during the pandemic, which resulted in a revenue surplus, the Healthcare and Social Security Agency (BPJS Kesehatan) slipped back into financial distress again last year. 

As people began to flock to hospitals and healthcare centers again, National Health Insurance (JKN) claims started to pile up for the non-profit agency, resulting in a deficit of Rp 7.4 trillion (US$473.8 million), or 4.8 percent of the total premium payments by members last year. The deficit is expected to rise to a record high this year as the number of people covered by the insurance amounts to more than 267 million, more than 95 percent of the population. 

With the large number of people to cover, the insurer faces greater potential for higher claims and more challenges in regard to premium collection. Indonesia rolled out the JKN insurance under BPJS Kesehatan in 2014 in an attempt to provide universal health coverage for its people. 

The large population covered under the scheme made the JKN the largest single-payer health insurance system in the world in 2021, according to medical journal Lancet. The national health scheme is funded by the government at national and regional levels to cover the poor, low-income families and retired government employees, which altogether account for about 54 percent of JKN members. 

Social contributions for workers, paid jointly by employees and employers, also play a significant role as they account for 20 percent of the health scheme. Members who work in the informal sector or are self-employed register themselves for the insurance independently, and account for the remaining 26 percent of the JKN coverage. 

Prior to the pandemic, BPJS Kesehatan became embroiled in a constant deficit because of mismanagement and an insufficiency of healthcare providers. The lack of implementation of standards of medicines and health services led to poor judgment by hospitals and doctors in allocating the services, leading to soaring claims and medicine scarcity for critical diseases.

95.7% Coverage For Indonesia National Health Scheme

The National Health Insurance (JKN) coverage has reached 267 million people, or equivalent to 95.77 percent of the nation’s population, by 2023-end, according to the Health Ministry’s Director General of Health Services.

The number almost reached the 98 percent coverage target as mandated by the 2024 RPJMN (National Middle-term Development Plan) according to state health insurer BPJS Kesehatan.

Out of the 267 million insurance participants, 214 million can be considered as being “active participants” who pay their insurance fees. Meanwhile, another 54 million participants are considered “non-active". “Some 99 percent of the 54 million non-active participants, equal to 53.8 million, are PBPU (non-wage earners) participants.

Insurance participants are considered non-wage earners if they work in the non-formal sector or micro, small, and medium enterprises.

By February 2024, the number of JKN participants reached 268 million, an increase of one million from the 2023-end figure. The latest number has shown significant progress from 2014 when the insurer recorded only 133 million insurance participants at that time.

Accelerating Medical Claims Indonesia

The life insurance industry in Indonesia paid out $4.89b (IRD77.67t) in claims to over 9.82 million beneficiaries during the first half of 2024 (H1 2024). Whilst the total claims decreased overall, health-related claims rose significantly during this period. 

Surrender claims and death claims fell by 13.5% year-on-year (YoY) and 5.1% YoY, respectively, driving the overall decline. However, health claims surged by 26% to $0.74b (IDR11.83t) in H1 2024.

Individual health claims increased by 29.3% YoY to $0.48b (IDR7.62t), whilst group health claims grew by 20.3% YoY to $0.27b (IDR4.21t). The ratio of health insurance claims to premium income reached 105.7% YoY, indicating that payouts exceeded premiums collected, presenting financial challenges for insurers.

The rise in health claims is attributed to growing medical inflation and emphasized the industry's commitment to providing quality healthcare services. Ongoing coordination with regulators, the Ministry of Health, and healthcare providers to address these challenges and ensure sustainability in managing health insurance claims.

In terms of investment, the life insurance industry's total portfolio reached $33.95b (IDR538.80t) as of June 2024.

Staging Traffic Accident For Claim

Central China’s Henan police recently cracked a case in which three people were suspected of intentionally staging traffic accidents to defraud insurance payouts. While committing the crime, one suspect was accidentally killed.

A suspect surnamed Hu bought a second-hand SUV and devised a plan to scam insurance money. Hu, supposed to take the role of a passer-by in the hoax, recruited two others to stage a single-vehicle traffic accident. An accomplice surnamed You acted as the driver, while another Hu served as the informant.

In their sham story, You drove the SUV and crashed it into a poplar tree about 50 centimeters in diameter at a downhill corner. Unexpectedly, however, You, the driver, was killed instantly due to a driving error.

During the investigation, police uncovered several anomalies. For example, at the scene of the accident, the SUV’s airbags were not opened, and there were no signs of braking on the road. 

Further investigation revealed that Hu, posing as a passer-by, owned a garage and engaged in second-hand car trading, with the insurance payouts directed to one of his accounts. They intentionally staged 11 automobile accidents since 2019, defrauding insurance companies of over 900,000 yuan ($120,000).

Hong Kong Agents Defraud Insurers

A former branch manager of an insurer and 12 ex-insurance agents pleaded guilty on Saturday to conspiring to defraud two insurance companies of HK$52 million (US$6.68 million) by making false policy applications.

Lo Yin-wa, a former branch manager of FWD Life Insurance, was named as a mastermind behind the fraud. She pleaded guilty to 18 charges of conspiracy to launder criminal proceeds and two charges involving conspiracy to defraud. Twelve others, aged between 24 and 61, pleaded guilty to conspiracy to defraud and conspiracy to launder criminal proceeds, including seven insurance agents on Lo’s team.

The other defendants are former unit manager at insurer Sun Life Hong Kong Kwok Yun-fong and four agents under her.

The case arose from a complaint made to the anti-corruption watchdog. The agency launched an investigation and said it found Lo had recruited defendants in the case, as well as other people, to join Sun Life or FWD between February 2016 and November 2020.

Lo had asked her agents to hand most of the commissions and other payments received from the two insurers to her. Defendants then laundered about HK$47 million in criminal proceeds through 23 bank accounts controlled by Lo.

Lo and her agents at FWD had falsely stated the agents were handling 272 insurance policy applications. Lo and Kwok, alongside his agents, made false claims involving 206 insurance applications to Sun Life Hong Kong.

Both insurers were unaware of the alleged fraud, approving all applications and disbursing more than HK$22 million in commissions, incentives, bonuses and allowances to Lo’s team, as well as over HK$29 million to Kwok’s team.

The insurance policies were mostly high commission rate products, most of which expired after subsequent premium payments were missed.

Symptoms Of Toxic Leadership

Recognizing that you might be a toxic leader is the first step toward change. Here are some signs to watch out for:

High Employee Turnover - If your team has a high turnover rate, it might be an indication of toxic leadership. Employees generally leave when they feel undervalued or mistreated. As of 2022, 70% of all U.S. employee turnover is voluntary.

Low Team Morale - A toxic leader often fosters an environment where employees feel constantly stressed and unhappy.

Poor Communication - These types of leaders often fail to communicate effectively. They may ignore suggestions, provide unclear instructions, or not communicate at all, leading to confusion and inefficiency.

Constant Blame Shifting - Toxic leaders rarely take responsibility for their actions, often deflecting blame onto their team members, which erodes trust and accountability.

Inconsistent Expectations - Unpredictable standards or frequently changing goals can create confusion and frustration within the team, leading to decreased performance and commitment.

Lack of Recognition - If the accomplishments and contributions of team members go unacknowledged, it can foster feelings of being unappreciated among employees, driving them to disengage.

Isolation of Employees - If team members feel excluded from important discussions or decision-making processes, it can lead to a culture of distrust and competition instead of collaboration.

Chiropractor Scammed Singapore Insurer

A chiropractor was taken to court on Tuesday (Jan 22) after he allegedly worked with two insurance agents to cheat Manulife Singapore of more than $14,000 by submitting bogus personal accident claims by 12 people who were covered by the insurer.

Shareholder of Chiropractic Focus Group Charles Loo Boon Ann, 29, is accused of committing the offences with Priscilla Tien Ling, 27, and Mike Chew Jun Yong, 36. Loo was charged with 17 counts of cheating while Tien faces 12 charges for similar offences. Chew was handed nine cheating charges.

The trio allegedly committed their offences between June 2017 and April last year and Manulife Singapore is said to have been duped into delivering the monies to the 12 insurance policy holders.

They allegedly received between $200 and $1,200 each. Tien's cases allegedly involved nine policy holders who received more than $8,000 in all. Five policy holders linked to Chew are said to have received about $7,000 in total.

In a statement on Monday, the police said the trio allegedly cheated the insurance firm through false personal accident claims for treatments received at Loo's clinics in Tampines and Tanjong Pagar. For each count of cheating, offenders can be jailed for up to 10 years and fined.

India Mulls Allowing 100% FDI For Insurance Company

The Indian government plans to introduce a significant overhaul of the insurance sector by allowing 100% foreign direct investment (FDI) in insurance companies. This proposal, part of the Insurance Amendment Bill, is expected to be presented during Parliament’s winter session. If implemented, the move could allow foreign insurers to operate independently in the Indian market.

The bill also aims to relax restrictions on insurance agents, permitting them to sell policies from multiple insurers rather than being tied to a single company.

India currently caps FDI in insurance companies at 74% while intermediaries face fewer restrictions. The market includes 24 life insurers, 26 general insurers, six standalone health insurers, and one reinsurer – General Insurance Corporation.

Raising The FDI Limit - to 100% aims to attract international insurers with the financial resources required to grow in a capital-intensive industry. The entry of such players is expected to complement existing domestic firms like SBI, ICICI, HDFC, and prominent conglomerates such as the Tata and Birla groups.

The proposed changes may also prompt foreign companies to reconsider their market strategies. For instance, Allianz, reportedly exploring an end to its partnership with Bajaj Finserv, could potentially enter the Indian market as an independent operator under the new framework.

Relaxing Restrictions On Agents - is another key element of the proposed reforms. Currently, agents often register family members to represent additional insurers, a practice that the new rules would legitimize. By allowing agents to sell products from multiple companies, the government hopes to streamline the market and enhance transparency.

India’s insurance penetration stands at approximately 4%, prompting calls for increased investment and structural reforms to grow the market.

To address this, IRDAI is exploring additional measures, including the introduction of composite licenses. This change would allow insurers to offer life and non-life policies through a single entity, potentially benefiting companies like Life Insurance Corporation of India, which is reportedly seeking to acquire a health insurer to diversify its offerings.

Further proposals include reducing solvency requirements to free up capital, which would enable insurers to expand their underwriting capacity.