Leadership Mistakes

Five mistakes leaders must absolutely avoid to become more effective. These “mistakes” have been captured in several surveys, personal interviews with hundreds of employees and leaders, and the literature.

Not Recognizing People's Strength - Not recognizing people’s unique talents beyond a job description and how that translates to high performance is undoubtedly an engagement killer. Truth is, people love and want to use their strengths. The best leaders will leverage close relationships with employees by discovering their strengths and bringing out the best in their employees.

Not Spending Personal Coaching - To avoid your schedule becoming a reflection of your selfish priorities in the eyes of employees, create margin and build in time for one on ones. There is a simple way to do it in fifteen minutes or less. Here are the steps for crafting one-on-one meetings that get results.

Poor Transparency - Here is why people holding power hoard and withhold information: It’s about control. And control is one of the most effective ways to kill trust. A leader hoards information to control his environment, and the people in it cannot be trusted. The reverse of this is a leader who acts responsibly by sharing information and being transparent about decisions, direction, and emotions with their team.

Micromanaging - While we need to recognize that micromanagers are human, like the rest of us, and generally have good intentions, they often lack the day-to-day awareness of what it takes to inspire people intrinsically to excel. They tend to operate from a different paradigm altogether.

My Way Or Highway - A manager who always has to be right and needs to have the final say on everything shows a lack of emotional intelligence. When they don’t ask for input from others—especially during tough times, which can be really stressful—trust starts to fade, and team morale takes a hit.

If a manager doesn’t share a clear vision and listen to what the team has to say about it, team members are likely to feel unappreciated, disrespected, or overlooked. As a result, they might become passive and go along with things out of frustration rather than genuine engagement.

Shaking Agent Stereotype

Consumers have almost viewed the insurance industry as purely transactional. Consumers trust financial services companies, including insurers, considerably less than those in other industries. 38% of consumers perceive insurance agents solely as sellers, saying they lack proactive support in post-deal closures, especially during pivotal moments such as claims assistance. Combined with a lack of access to financial services in some communities and limited financial education, these perceptions have made customers less likely to buy insurance.

For the industry to reverse these trends, agents need to shake off the “seller” stereotype. Here are four insurance agent tips to help dismantle this perception and better serve customers.

1. Focus On Financial Education
A lack of financial literacy can lead to individuals getting policies that don’t align with their needs. This is largely because consumers don’t fully understand insurance contracts. Limited cost transparency also makes it harder for consumers to choose the right insurance coverage.

Agents can eliminate the seller stereotype by focusing on financial education in every client interaction. After asking a few questions about a customer’s needs, they can succinctly explain different types of insurance that may be suitable, focusing on benefits, the specific risks each policy covers, monthly or annual premium costs, and potential riders or endorsements an individual can add to further customize their coverage. These efforts can complement an insurer’s formal financial education program and may include educational materials and on-demand webinars that guide consumers through the insurance selection process.

Clients who feel more informed about their choices are more likely to trust an insurance agent’s guidance, so this is one way agents can position themselves as a valuable resource.

2. Communicate Proactively
Consumers often view insurance agents as sellers because they get limited support once they sign up for a policy. This suggests agents are really attentive when they are trying to win a consumer’s business, but less attentive afterward, which is counterintuitive since customers may need even more help when they have a policy question or need to file a claim.

Customers usually interact with their insurance agent only once or twice a year. This is a big difference compared to other financial service industries, such as banking, where interactions occur 10 to 20 times more frequently, noted the source. It’s hard to shake a stereotype if you are limited in the interactions you have with a policyholder — not to mention when those interactions are predominantly sales focused or claims submissions.

Proactive communication can address this issue. Agents should reach out to policyholders to review their coverage on a semi-annual or annual basis, inform them of new products, and offer tips that focus on the post-purchase experience, such as a step-by-step guide for filing a claim or advice for minimizing their insurance risks. Creating opportunities for regular touchpoints with consumers can help agents foster an ongoing relationship that increases insurance customer satisfaction.

3. Lead With Empathy
Despite the higher cost associated with serving through agents, they only marginally outperform online and mobile applications in customer satisfaction: 39% of insurance consumers express dissatisfaction when interacting with insurance agents, which is slightly less than the 40% who report dissatisfaction with online and mobile applications. Customers may not be satisfied because agents aren’t offering them personalized solutions — 34% doubt agents and brokers offer the most competitive options and believe agents are biased toward carriers with the best commission rates or the least burdensome submission and quote producer portals.

Agents can overcome these beliefs by demonstrating empathy for clients and actively listening to a customer’s concerns. They can showcase this in their email follow-ups with supportive words, acknowledgment of their unique challenges, and tailored guidance.

4. Leverage Technology For Better Service
Insurers can use technology to enhance the customer experience, making it easier for agents to deliver better service. Cloud-based contact centers give agents secure access to customer profiles from anywhere and allow them to see the most up-to-date information about a customer’s previous interactions. This way, they can have a more informed conversation with customers and avoid repeating the same details. Interactive solutions like live chat, policy comparison, and virtual consultation tools, as well as questionnaires that identify coverage gaps, can help agents deliver more useful information to customers in real time.

When using online and offline tools, it’s important to provide a seamless omni-channel customer experience to ensure high-quality engagement every time. Approximately 1 in 6 customers reported receiving no follow-up from insurers after an initial financial advice discussion. Among those who did receive follow-up, 40% interacted with two or more people, which can result in a fragmented experience. Insurers need to do what they can to address these gaps and ensure that customer interactions transition smoothly between all channels.
Moving from seller to trusted advisor

Finding the right insurance shouldn’t be a complex process, but it often is. Perceptions that insurance agents are more focused on commissions rather than a consumer’s best interests only add to this complexity and create a significant trust gap. Agents can defy the “seller” stereotype with solid financial education and proactive communication by demonstrating empathy and leaning on technology to enable their work. This will show consumers they are with them at every stage in their insurance journey.

Agent Sue Prudential - Singapore

A veteran insurance agent who was an agency leader within his company’s network of agents is suing his former employer, Prudential Assurance Co Singapore, for wrongful termination. 

Unfair Agency Agreement - See Jen Sen worked for Prudential for 19 years before his agency agreement was terminated in March 2022. Mr See alleges that the termination came about because he blew the whistle on Prudential’s alleged malpractice in its business to the Monetary Authority of Singapore (MAS).

Mr See is suing Prudential for wrongful termination, unjust enrichment and a claim under the Unfair Contract Terms Act. Prudential applied to strike out Mr See’s claims entirely and succeeded partially – an assistant registrar on the case struck out two of the claims, leaving the wrongful termination claim.

Mr See then appealed against the striking out and succeeded in a judgment made available on Thursday (Mar 21). This means he will be allowed to pursue all three claims against Prudential at trial.

Whistle Blower Inquiry - According to the judgment, Mr See was the subject of an inquiry by a compliance committee set up by Prudential before his termination. He was suspected of sending complaints under various pen names to MAS and the chief executive officer of Prudential, accusing Prudential of malpractice.

This refers particularly to the launching of allegedly misleading advertisements of insurance products that contravened MAS guidelines. Mr See did not deny that he was responsible for these complaints, but his counsel referred to them as the whistleblowing acts.

Mr See alleged that there was a breach of contract when his agency agreement was wrongfully terminated. The termination was in fact grounded in his whistleblowing acts, which is not a legitimate reason to terminate his contract, Mr See alleged.

He also alleged that Prudential had been “unjustly enriched” by the financial benefits it retained from terminating his agreement. This refers to bonus payments Mr See was entitled to under an incentive scheme called the “Agency Leader Long-Term Incentive Scheme” and bonus commissions under the “Sell-Out scheme”.

The conditions for receiving these bonus payments and commissions are set out in documents circulated to the agents, and form the basis of Mr See’s third claim – that some conditions breach the Unfair Contract Terms Act.

Prudential’s lawyers, on the other hand, say that the termination was lawfully made and that Mr See was given notice of his termination.

Justice Choo Han Teck explained in his judgment that it is best “not to fetter” the hands of the trial judge, who will have to hear the claim for wrongful termination “in any event”. “In order to do justice in full, he must be allowed to decide what reliefs or remedies a claimant seeks,” said Justice Choo, adding that the issues ought to be ventilated as part of the full narrative at trial.

China e-Medical Insurance Fraud

A recent investigation revealed that many overseas e-fraud accounts have been traced back to rural areas at home, where more than 10,000 elderly residents had been used to transfer money for money laundering.

Promoting e-Medical - In recent years, local governments have made efforts to promote e-medical insurance card usage among rural residents, particularly among the elderly. To this end, some of the third-party platforms that have obtained authorization for accessing the e-medical insurance card have conducted promotional activities in rural areas, to help villagers register and activate their cards. However, some criminal gangs are also eyeing these activities, using them as conduits for large-scale data theft.

Since last year, more than 10,000 rural elderly individuals in Central China's Henan Province have had their personal information exploited during the activation of their e-medical insurance cards. Fraudsters secretly created Alipay accounts in these elderly's names, which were then sold to criminal syndicates involved in online gambling and money laundering, transforming these accounts into instruments for illegal transactions.

Investigation - In June 2023, police in Dengzhou, Henan Province received a tip-off, which said that several Alipay accounts in the city were implicated in money laundering for overseas telecom fraud and online gambling gangsters.

Upon investigation, police discovered that holders of these accounts are farmers living in remote rural areas. These accounts were fraudulently opened during the e-medical insurance card activation process, police found.

Further investigations showed that the so-called third-party platform staff who assisted villagers opening accounts were imposters belonging to a sophisticated crime syndicate, which had registered a shell tech company to commit information fraud in villages. The primary suspects, 11 in total, had illegally earned more than 3.8 million yuan ($520,000).

1,500 Alipay Accounts - Within one month, nearly 1,500 Alipay accounts were utilized for overseas money to launder transactions in Dengzhou. The volume of transfers to overseas surpassed 10 million yuan, with the largest single transaction exceeding 60,000 yuan, police said.

One of the key factors enabling the perpetrators' success was they have got official recommendation letters from the local medical insurance departments. These letters lent credibility to the scammers, convincing village doctors to facilitate the frauds without suspicion and allowing the group to collect personal information randomly.

The local police then launched an investigation into two staff members who issued the recommendation letters from Dengzhou's medical insurance bureau. The staff admitted that while the bureau was tasked with promoting e-medical insurance cards, they lacked sufficient personnel to do the job. When the fraud gangs approached them with signed guarantees and signed a pledge to help promote the cards for free, they accepted.

The lack of oversight by the medical insurance bureau and management center in Dengzhou enabled criminals to exploit the system and led to widespread data breaches. The police have handed relevant findings to local disciplinary authorities and the two officials responsible for the issue were given a warning within the Party and a major demerit, respectively.

On October 25, the Dengzhou People's Court delivered a verdict on the case. A total of 32 individuals in the ring were given prison sentences and fines for infringing on residents' personal information.

The Dengzhou People's Procuratorate also issued recommendations to the city's medical insurance bureau, urging the Dengzhou medical insurance bureau to standardize the workflow and confidentiality provisions of e-health insurance authentication, strengthen the qualification audit of commissioned partners, and better protect residents' personal information.

Intel Sue Former CEO

LR Trust, an Intel shareholder, has filed a lawsuit related to the performance of Intel Foundry and against former and current executives as well as directors of the company. The lawsuit accuses Pat Gelsinger, the former chief executive of Intel, and David Zinsner, an interim co-CEO and CFO of Intel, of mismanagement, misleading disclosures, and demanding the return of their compensations and other gains to the company. Among the listed demands, the plaintiffs seek the entire sum of Gelsinger's $207 million salary earned during his tenure in 2021, 2022, and 2023, which would then be paid back to Intel.

The lawsuit claims that Pat Gelsinger and David Zinsner failed to communicate the poor performance of the Intel Foundry division, which had struggled to attract significant interest from major fabless designers while bleeding money. The lawsuit accuses Intel of failing to disclose critical risks in its 2024 Proxy Statement, a claim similar to one for which the company the company was sued for earlier this year. The lawsuit further claims that executives and board members allowed misleading statements about Intel Foundry Services' (IFS) growth potential, obscuring substantial operating losses and declining internal revenue.

LR Trust asserts that Intel misrepresented the financial condition and performance of IFS and issued materially false and misleading public statements regarding cost savings, operational efficiencies, and IFS's profitability. Intel's production unit lost $7 billion in 2023 alone and losses worsened in 2024 as the company increased spending on new fabs.

The lawsuit seeks remedies for alleged harm to the company itself. If successful, the damages would be paid to Intel rather than LR Trust and individual shareholders, which could improve the company's financial health. If LR Trust wins the lawsuit, it benefits primarily through its indirect interest as a long-term shareholder of Intel.

The lawsuit also claims that Pat Gelsinger and David Zinsner allegedly received substantial compensation, including salaries, stock awards, and bonuses, during a period of alleged mismanagement and financial misrepresentation. As a result, the plaintiffs seek restitution and punitive damages, along with court costs.

Life Insurance Agent Versus Broker

If you’re shopping for coverage, you’ll likely deal with a life insurance broker or agent at some point during the process. Both entities sell life insurance policies, but there are important differences between the two and the ways in which they help you navigate your options. Here’s what to consider before shopping.

What does a life insurance agent do?
Life insurance agents represent insurance companies to sell policies that meet your needs. In general, there are two types of agents — captive and independent. Captive agents typically work with one insurer and sell products offered by that company. A captive agent may be able to offer a policy from another insurance company only if the main insurance company doesn't sell that type of coverage.

Independent agents can sell policies from multiple companies, but only those with which they have an agreement to sell.

What does a life insurance broker do?
Similar to independent agents, brokers can sell policies from a variety of insurance companies they partner with. Insurance brokers typically represent the buyers, not the insurance companies. Some brokerage firms let you compare quotes from various companies and buy coverage online. Brokers can also work more personally with clients to find the best coverage options.

Life insurance brokers vs. agents
Below are a few key differences between these two types of professionals.

Brokers
Policy options: Can shop around for policies from multiple insurers.
Fiduciary duty: Must act in the best interests of you, the client.
Fees: May charge a consultation fee.

Agents
Policy options: May work with a single insurer or several.
Fiduciary duty: Must act in the best interests of the company they represent, then the client.
Fees: Generally don't charge consultation fees.

How life insurance agents and brokers are paid
Life insurance agents or brokers typically earn a base salary in addition to a commission, while others work solely on commission.

A life insurance agent's or broker’s commission depends on a few factors, such as the type of policy they sell and the payment structure of the insurer or insurers they work with. Commissions can be up to 40% to 115% of the premiums the policyholder paid within the first year of the policy. The commission usually drops to a lower percentage (1% to 10%) in subsequent years and eventually tapers off. Permanent life insurance policies tend to have the highest and longest commission structures.

Agents don’t usually charge additional consultation fees, so you won’t pay anything extra for a policy that you buy through an agent. Brokers sometimes charge a consultation or advisor fee to help you find the best life insurance policy.

Life insurance broker vs. agent: Which is best for you?
Life insurance agents and brokers offer similar services and usually need a state license to sell insurance. While regulations vary by state, agents and brokers typically have a fiduciary responsibility, which means they are in a position of financial trust. But there are key differences: an agent’s fiduciary duty is to the insurer, then the client, while a broker’s duty is to the client. Both agents and brokers are required to provide accurate and timely information about the policies they sell.

When to use a life insurance agent
If you know the exact policy or insurer you want, you may prefer dealing with one company. If so, you can shop directly on the insurer’s website or through a captive agent who sells that company's products.

A life insurance agent may be a good fit if you:

• Know the kind of policy you want to purchase from a company.
• Are healthy and want a simple life insurance shopping process.
• Don’t want to pay extra fees since agents typically earn commissions from life insurance sales.

When to use a life insurance broker
A life insurance broker or independent agent is a solid choice if you want to see quotes and offerings from a variety of companies. For the widest range of options, choose a broker who works with a large number of companies. A good broker will know the life insurance underwriting guidelines at different insurers and steer you to the one most likely to offer the best-priced coverage. It’s also worth enlisting the help of a life insurance broker if you have a major health condition, a dangerous job or something else that makes you a high-risk life insurance applicant.

A life insurance broker may be a good fit if you:

• Would prefer someone to help you shop for life insurance.
• Have a more complex health or financial situation and need additional insight.
• Don’t mind paying a state-regulated consultation fee for personalized recommendations.

Online vs. traditional life insurance brokers and agents
Depending on the kind of life insurance you’re interested in, you may be able to choose between an online purchase and a more traditional one (such as over the phone or even face-to-face). Here’s what to consider.

a: Online agents and brokers
Shopping online through a broker or agent is a good idea if you require minimal help because you know how much life insurance you need and the type of policy you want.

If all you need is term life insurance, an online agent or broker might fit the bill. Term life lasts a set period of time, such as 10 years or 20 years, and is typically the most affordable life insurance. These policies are sufficient for the majority of people, and most insurers offer them.

Some companies sell same-day term life policies online. This type of instant life insurance coverage offers a quick application process that doesn't require a medical exam for many applicants. While it’s convenient, coverage can be more expensive as the insurer doesn’t have a complete picture of your health and lifestyle.

b: Traditional agents and brokers
A traditional agent or broker offers a more personalized experience, typically doing business face-to-face or over the phone. Choose this type of service if you need more support than an online platform can provide, or if you need permanent coverage, such as whole life insurance. A permanent policy can cover you for your entire life and includes cash value that grows tax-deferred.

Permanent life insurance is more expensive and complex than term life, so you may prefer to talk through your options with an agent or broker before making a decision.

How to choose an agent or broker
It’s important to find a life insurance agent or broker who understands your goals. Once you decide between an online or traditional agent or broker, start by asking for referrals from friends, family or community members.

You can also find trusted agents and brokers online, including companies that specialize in coverage for specific groups.

InsurTech Gaining Traction

In the age of smartphones and instant access to information, it’s no surprise that even the most traditional industries are undergoing a digital makeover. The insurance sector, once synonymous with stacks of paperwork and lengthy meetings with agents to get quotes, is no different.

Today, InsurTech, an emerging category in the connected economy, is spearheading this digital transformation, with startups leveraging advanced tools and technologies — from artificial intelligence (AI) to big data analytics — to transform how individuals choose and purchase insurance.

Latest Trend - The proportion of consumers shopping online for insurance surged from 22% to 27% between 2022 and 2023, while those turning to agents dropped from 42% to 35% over the same period. Anotable trend among younger consumers, who are turning to online communication channels when assessing life insurance options.

While younger individuals are more likely to have auto and health insurance, over 60% of Gen Z and millennial consumers plan to purchase one or more insurance types within the next 12 months, with nearly half eyeing life insurance specifically.

One significant way digital platforms are transforming the life insurance landscape is through the simplification of the purchasing process. Websites and mobile apps offer intuitive interfaces that guide users through the process, eliminating the need for complex forms and confusing terminology.

Moreover, with just a few clicks or taps on their smartphones or computers, consumers can compare quotes from multiple insurance providers, assess different policy options, and make informed decisions about their coverage.

Lemonade - A digital insurance company - offer unique services. By inputting basic information such as age, health status, and desired coverage amount, users can receive tailored insurance options in seconds, enabling them to make informed choices without the need for extensive research or consultation.

InsurTech firms are also transforming the sector with platforms tailored for life insurance agents, enabling agents and their clients to access near-instant quotes, compare, and apply for life insurance and long-term care insurance across multiple major carriers.

BackNine - Offer Quote & Apply streamlines the process with an eApplication software that can be completed in just five minutes, and also provides agents with personalized Quote & Apply websites which can be integrated into existing sites as white-label widgets.

Insurance Agents - Prioritizing agents’ convenience underscores the industry’s recognition of the crucial role professional guidance plays in the insurance process — a trend also highlighted in the PYMNTS Intelligence study.

In fact, despite their preference for online convenience, Gen Z and millennial consumers continue to place significant value on the guidance and expertise of financial professionals, even as they conduct their research and gather information online.

Specifically, nearly half of each demographic value the expertise provided by financial experts when making their ultimate insurance purchase decisions. This preference is rooted in a widespread lack of confidence among young consumers regarding their understanding of insurance products. 

In conclusion, digital platforms are reshaping the life insurance industry by streamlining the purchasing process for consumers, while simultaneously equipping agents with advanced tools and technologies. This convergence of technological innovation and professional expertise is positioning the sector to better meet the evolving needs of today’s connected consumer.

Aviva Acquires Direct Line

Aviva has agreed a deal to acquire Direct Line in a £3.7 billion cash-and-stock deal, a move that will create the UK’s largest home and motor insurer. Under the terms of the £3.7 billion new deal, for each Direct Line share held, shareholders will receive 0.2867 new Aviva shares, 129.7 pence in cash and up to 5 pence in the form of dividend.

Aviva shareholders will hold the majority of the company’s shares 87.5%, while Direct Line shareholders will hold a much smaller portion, 12.5%. 

Direct Line turned down Aviva's  £3.28 billion bid back in November. Direct Line rejected this initial proposal stating that it did not adequately reflects the firm’s standalone value, describing the offer as “highly opportunistic” and not in line with its long-term potential.

A preliminary acquisition agreement was reached between the two insurers in early December, with Direct Line shares valued at 275 pence each, resulting in a total deal worth £3.6 billion.

Mutual Benefits - In its rationale for the initial offer, Aviva stated that acquiring Direct Line was motivated by the belief that the deal would be mutually beneficial for shareholders of both companies. Aviva argued that the acquisition would unlock value for Direct Line that it could not achieve on a standalone basis, while also generating significant cost and capital synergies.

Aviva, acquiring Direct Line would accelerate its strategic shift towards capital-light products and strengthen its return on equity. Direct Line’s perspective - Aviva would provide support from a larger, more diversified parent group with better credit quality.

Reduce Workforce - To achieve the expected benefits of the acquisition, workforce reductions are anticipated, the insurers stated. These reductions, stemming from overlapping functions across various departments, are estimated to affect roughly 5% to 7% of the Combined Group’s employee base.

However, Aviva plans to mitigate the impact of these reductions through several measures. First, the workforce reduction will be phased in over three years following the completion of the acquisition. Secondly, natural attrition will play a role, with Aviva noting an approximate turnover of 1,300 employees in the UK in 2024.

Furthermore, Aviva is committed to redeploying employees where possible. The company currently has approximately 800 UK-based vacancies and anticipates the creation of new positions as it continues to pursue its organic growth ambitions.

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.