Sustainable Health Care

Bank Negara Malaysia (BNM), in collaboration with the Ministry of Health (MOH) and the Employees Provident Fund (EPF), will take steps to develop basic health insurance and takaful products that emphasize the concept of value-based healthcare. This initiative is part of the national health sector reform effort that needs to be implemented immediately to ensure access to more sustainable medical treatment. 

The increase in medical cost inflation, which had caused a continuous increase in health insurance and takaful claims, was among the matters discussed at the Naccol Executive Committee Meeting No 1 of 2025 on Tuesday, which was also attended by Domestic Trade and Cost of Living Minister, his deputy, senior ministry officials, state government representatives, industry and non-governmental organizations.

To address the issue, several measures have been identified to curb the increase in medical and health insurance and takaful premiums, including the distribution of premium adjustment rates, deferral of premium adjustments, reactivation and provision of alternative products.

The national health sector reform initiative also needs to be expedited within a three-year period, from 2024 to 2026. Meanwhile, the meeting also reviewed the Social Security Organisation’s (Socso) initiative in strengthening social protection and job matching to reduce the income gap among the people. Among the initiatives that will be enhanced include efforts to ensure more efficient job matching, providing incentives to employers for hiring workers from groups that are more in need, as well as strengthening social protection to provide better economic security for workers and their families.

The government remains committed to implementing various initiatives to address the cost of living challenges, including through income enhancement programs, cheap sales and cash assistance. These measures are part of ongoing efforts to ensure that the well-being of the people continues to be guaranteed in the face of current economic challenges..

Meanwhile, the government will expand the cheap sales program to help the people get essential goods at more affordable prices ahead of the festive season.

Rising BNPL Level

Local consumer 'buy now, pay later' (BNPL) transactions surged in the second half of 2024 (2H2024), reaching RM7.1 billion, up from RM4.9 billion in 1H2024. As of December 2024, there were 5.1 million active BNPL users, the majority aged 21 to 45 and earning less than RM5,000 per month. Twelve companies were offering BNPL services.

The growing use of BNPL in Malaysia had raised concerns over household debt levels, the overall increase in transactions remains manageable. 

As of December 2024, BNPL loans stood at RM2.8 billion, accounting for just 0.2% of total household debt in the country. Meanwhile, outstanding BNPL loans remained under control at RM82.6 million, or 2.9% of total BNPL credit.

New Distribution Channel For Insurance

Insurance agents in Florida and beyond are finding that some of their toughest competition now seems to be coming from firms that aren’t really insurance agencies at all – at least not in the historical sense of the word.

Payroll and staffing firms - particularly those involved in the recently announced merger of Paychex and Paycor, two of the largest payroll companies in the United States. That merger followed the 2024 acquisition of WorkForce Software by Automatic Data Processing, which is ranked as one of the largest payroll and employee management firms in the world.

While signing up businesses to supply workers or to manage their employee pay, taxes and benefits, the firms also often enroll the employers in workers’ compensation and other insurance coverage.

Through the years, many insurance agencies have partnered with payroll companies to provide commercial insurance for employers. With the merger, Paychex seems to be pushing a growth plan – marketing insurance and “one-stop shopping” to more and more businesses.

5,000 new customer per month - The association has polled insurance carriers that write business with Florida agents and with payroll firms. The data suggest payroll companies are adding as many as 5,000 insurance accounts per month. That’s 5,000 clients that are either having their agent of record changed or are purchasing workers’ comp through their in-house insurance agency, meaning retail insurance agents are losing 5,000 accounts.

Rotten eFishery

Investigators hired by the board of eFishery have determined the Indonesian startup is in far worse shape than they previously thought, and that investors are likely to get back less than 10 cents for every dollar they invested. 

Substantial Losses - The company, which deploys feeders to fish and shrimp farmers in Indonesia, incurred several hundred million dollars in losses between 2018 and 2024 and misrepresented its financial figures for years.

The fallen startup, whose financial backers include SoftBank Group and Singapore’s Temasek Holdings, had been a star of Indonesia’s startup scene. eFishery was valued at US$1.4 billion in 2023 after it raised US$200 million from Abu Dhabi’s 42XFund and some of its earlier investors.

Poor Management - In all, global investors ploughed around US$315 million into eFishery’s preferred shares over five funding rounds. In late 2024, the company was rocked by allegations of misconduct and inflated sales and profits, which led to the dismissal of its co-founders Gibran Huzaifah and Chrisna Aditya.

It is estimated that eFishery had around US$50 million in cash as of around mid-February, and recommended that much of the business be wound down. That’s bad news for preference shareholders, all of whom would be paid back on an equal, or pari passu basis in the event of a liquidation. The investors could get back 9.5 cents on the dollar under an “optimistic scenario,” and just 8.3 cents on the dollar under a “conservative scenario, according to the presentation. That would mean Abu Dhabi’s G42, which invested US$100 million in the April 2023 round, may get just US$8.3 million back less than two years later.

eFishery business revolved around installing AI-driven smart fish feeders, sensors and automated supply chains that connected farmers to buyers via smartphone apps. It also helped farmers obtain financing from peer-to-peer lenders and financial institutions to pay for their feed and operational costs.

Bad Debts - The company had claimed to have more than 400,000 fish feeders deployed, and investigators initially estimated the number was closer to 24,000. The current estimate is just 6,300, of which only 600 are sending back data.

The investigators also found that there was a high default rate on the financing arrangements, and that eFishery bears all losses when farmers fail to repay their loans.In theory, the proceeds from the harvest or cash collected from farmers should be repaid back to the lenders. In practice, however, eFishery faced significant challenges when it comes to collection from borrowers.

Hampering the debt collection process were the huge distances and fragmented nature of Indonesia’s developing economy, where almost 10 per cent of the population lives below the poverty line. About 76 per cent of eFishery’s US$68 million in accounts receivable were deemed as bad debt more than 60 days overdue, with the company ultimately liable for the bulk of loans it facilitated with banks.

Substantial costs would need to be incurred to realize or recover these outstanding amounts from borrowers who are scattered all across the country. The company’s fish and shrimp businesses were operating on thin margins and severely loss making. Key apps were not connected to eFishery’s accounting systems, and many farmers were manually matched with buyers.

No Magic Apps - Much of the advanced technology that the firm touted did not work as claimed. None of eFishery’s PondTag sensors that were supposed to help remotely judge water quality and automate fish and shrimp feeders had been deployed. The limited data collection meant fish feed predictions were wrong almost half the time.

In essence, eFishery was “operating like a traditional trading business without technology. This explain the company’s large workforce of almost 2,600 employees at its peak in early 2024. Following mass job cuts since the start of this year, the company has roughly 200 staffers.

Manulife Advances In Asia

Manulife’s core earnings in Asia rose 27 percent year-on-year to $1.9 billion in 2024, according to the insurer’s financial results. This included annualized premium equivalent sales growth of 36 percent to $4.4 billion and an increase of 35 percent in new business value to $1.6 billion. New business contractual service margin was also up 38 percent to $1.6 billion.

Globally, Manulife posted $5.4 billion of net income attributable to shareholders in 2024, up 5 percent.

Some of the regional developments highlighted by the insurer this year included the expansion of Manulife Pro to Indonesia, Japan and Hong Kong. Manulife Pro is the firm's proprietary proposition for top-tier agents that includes differentiated resources and tools, such as dedicated underwriting support and enhanced customer engagement services with access to customer leads.

The insurer also launched two new products that cater to the protection, legacy planning and wealth management needs of high net worth customers. On technology, it launched a generative artificial intelligence sales tool in Singapore and Japan that enables agents to automatically create personalized engagement strategies.

Vietnam Life Insurance Slump

Vietnam’s life insurance market is projected to shrink for the third consecutive year in 2025, with gross written premiums (GWP) expected to decline by 1.3% to VND146.1 trillion (US$6 billion).

This follows contractions of 12% in 2023 and an estimated 5.7% in 2024, primarily due to regulatory issues in bancassurance and broader economic factors.

Despite the near-term decline, the sector is forecast to return to growth in 2026, supported by demographic trends, increased household income, and policy measures aimed at restoring consumer confidence.

Regulatory challenges and consumer confidence - Concerns over sales practices in bancassurance, which accounts for a significant portion of life insurance distribution in Vietnam, have contributed to declining consumer trust. Mis-selling practices, unclear policy terms, and the perception that some life insurance products were tied to bank loans have led to consumer scepticism.

Irregularities in life insurance distribution have led to a decline in consumer confidence, resulting in life insurance market contraction during 2023-24. This decline in trust has resulted in an increase in policy cancellations, with the number of active life insurance policies dropping by 7.5% in 2023 and an estimated 3.7% in 2024. At the same time, life insurance penetration has fallen from 1.9% in 2022 to an estimated 1.3% in 2024.

The Vietnamese government has implemented regulatory changes to address these concerns. The revised Insurance Business Law, which took effect in November 2023, prohibits the sale of life insurance products within 60 days of loan disbursement and imposes penalties on banks that tie non-mandatory insurance products to loans.

Key growth drivers and future outlook - Endowment insurance, which accounted for approximately 86.1% of GWP in 2024, remains the dominant product segment. New offerings, such as savings-linked policies with coverage for critical illnesses and hospitalization introduced in March 2024, are expected to support further demand, particularly among Vietnam's aging population. 

Insurers are also increasingly leveraging technology to improve distribution and customer service. The adoption of artificial intelligence, big data analytics, and digital platforms is expected to enhance efficiency and policyholder engagement.

Supplementary insurance, which provides additional coverage through riders, continues to gain traction. This segment’s market share is expected to rise from 12.3% in 2024 to 13.7% in 2029, with an anticipated CAGR of 4.9% during the period.

The market is expected to return to growth in the coming years – with regulatory reforms, technological advancements, and customer-focused products expected to help rebuild trust in the life insurance sector. The aging population and rising healthcare costs will drive demand for comprehensive insurance products, ensuring a steady growth trajectory for the life insurance market over the next few years.

Transfer Of Wealth To Next Generation

Asia is undergoing a historic transfer of wealth to the next generation. Within Greater China, most high net worth individuals use insurance to facilitate this process. More than half (57 percent) of high net worth individuals (HNWI) in Greater China said they leverage insurance to facilitate a smoother transfer of wealth to future generation.

In terms of the most important outcome they hoped to achieve, 64 percent prioritized the distribution of their assets in their desired manner to prevent inheritance disputes. 67 percent acknowledged that designating beneficiaries through insurance can help mitigate such conflicts.

Insurance has evolved from a risk management product to a legacy planning tool highly preferred by our HNWI clients. It mimics some key features of will, family trust, and limited power of attorney, making insurance one of the most accessible legacy planning components.

By the types of coverage, life insurance was the leader with close to 78 percent of respondents owning a life insurance policy. This was followed by medical insurance (76 percent) and savings insurance (60 percent). 70 percent also said they have integrated insurance into their asset portfolios with 30 percent allocating 11 percent or more of their assets.

In today’s evolving financial environment, HNWIs are turning to insurance as a key strategic means of achieving financial stability, effectively managing risks, and preserving their legacies.

Singapore Life Insurance Robust Growth

Singapore's life insurance industry recorded robust growth in 2024, with total weighted new business premiums reaching S$5.87 billion. This marks a 19.7% increase from the previous year, the Life Insurance Association Singapore (LIA) reported.

Investment-linked plans (ILPs) emerged as a key growth driver, surging 41% year-on-year to S$2.25 billion, as consumers sought wealth accumulation opportunities amid economic uncertainty.

Non-participating products also showed strong performance, growing 19.2% to S$2.19 billion, while participating products saw a slight 2.7% decline.

The industry reported significant growth in health insurance coverage, with approximately 40,000 more Singaporeans and permanent residents covered by Integrated Shield Plans (IPs) compared to 2023.

Currently, 2.97 million lives – about 71% of Singapore residents – are protected by IPs providing coverage beyond MediShield Life.

Claims payouts increased substantially in 2024, with the industry paying out S$18.12 billion to policyholders and beneficiaries, up 33.4% from 2023. Of this amount, S$16.18 billion was for matured policies, while S$1.94 billion covered death, disability, and critical illness claims.

Curbing Medical Insurance Premium - Malaysia

The continuous rise in medical inflation has led to an increase in the claims rate for medical and health insurance and takaful (MHIT), Second Finance Minister Datuk Seri Amir Hamzah Azizan said. He said Bank Negara Malaysia (BNM) had taken several interim measures to curb the impact of rising MHIT premiums on policyholders, which took effect on Jan 15.

The interim measures include the distribution of premium adjustments due to medical claims inflation over a period of at least three years until the end of 2026, and a one-year delay in premium adjustments due to medical claims inflation for policyholders aged 60 and above who are covered under the minimum plan for the MHIT products purchased.

Additionally, policyholders whose policies have expired in 2024 due to the premium reset can contact their respective life insurers and family takaful operators (ITOs) to request their policies be reactivated based on the adjusted premiums.

Amir Hamzah was responding to a question from Lim Guan Eng (Pakatan Harapan-Bagan) regarding the profits of life insurance companies since 2018 and the resolution of the controversy over premium increases for medical insurance, which had surged by as much as 70%, as well as steps to prevent arbitrary hikes in private healthcare costs.

Amir Hamzah said that through the interim measures, 80% of policyholders are expected to face annual premium adjustments of less than 10% due to medical claims inflation. Meanwhile, he said the average annual profit of the insurance and takaful industry between 2018 and 2023 was RM4.4 billion from life insurers and ITOs.

At the same time, he said the government, through the Ministry of Health, will prioritise comprehensive health reforms to address the issue of medical inflation and charges at private hospitals. These efforts include implementing the Diagnostic Related Group (DRG) payment model, enhancing transparency in drug costs, and comparing common medical costs.

Other measures that can be taken by private hospitals to curb medical inflation are also being discussed as long-term solutions.

Ghost Insurance

Reports of "ghost broking", scammers selling fake car insurance, have risen by 30% over the last five years. Ghost brokers sell false policies to drivers, manipulate information given to genuine insurance companies, or take out insurance and cancel it straight away. This leaves people without valid car insurance, which is illegal.

A victim lost over £500 to a ghost broker. He was looking for cheap car insurance and saw an advertisement on social media for a deal which was half the price of other companies. He bought the policy, and it was only when he tried to make a claim after a crash that he discovered the truth: He called up Aviva and they told me there wasn't a policy taken out in my name and that the number we had given them was not a number they would use.

Aviva was not at fault. Victims are lured in by genuine-looking websites and are sent professional-looking invoices. Victim received insurance documents that looked so real, they even fooled the police officer at the accident.

Trending Korea Micro-insurance

An increasing number of insurance companies have launched small-sum, short-term products that boast high accessibility through digital enrollment and affordable premiums, in a bid to attract the MZ Generation. The MZ Generation includes Millennials and Generation Z, born between the early 1980s and early 2010s. 

Insurers are increasingly developing microinsurance products with lower premiums and simpler coverage to align with MZ lifestyles. Insurance companies will continue investing in coverage tailored to the needs of the MZ Generation and enhancing their digital competitiveness to overcome the insurance market’s decline, driven by various factors such as COVID-19, low interest rates and slow economic growth.

Digital Platform - The insurance subscription rate of the MZ Generation in 2019 was about 10 to 15 percentage points lower than those of all age groups for both life and non-life insurance. However, around 50 percent of MZ respondents reported having purchased or attempted to purchase insurance via computers or mobile devices, the highest among all age groups. This suggests significant potential for digital platform-based insurance sales. 

Lotte Insurance - recently launched a ski insurance plan that covers injuries sustained while skiing or snowboarding, for a premium of just 1,800 won ($1.23). The product, available to customers aged 19 to 59, comes in two plans. One covers only injury-related risks such as fracture diagnosis, surgery and cast treatment costs. Another provides comprehensive coverage from the moment the customer leaves home for a ski trip until they return, including protection against traffic accidents and other risks. The premium for this one is 3,200 won.

Tongyang Life Insurance - for its part, introduced a mini flu insurance plan priced between 2,000 won and 3,000 won last month. This product provides coverage by paying out benefits if the insured is diagnosed with influenza and prescribed antiviral medication for treatment.

Kyobo Life Insurance - introduced a product that covers various conditions that may arise while reading. The plan provides coverage for eye, muscle and joint disorders as well as spine-related conditions. For a 40-year-old male customer with a coverage amount of 10 million won, the one-time premium is only 1,290 won.

Prudential Financial Reported Losses

Prudential Financial shares fell in post-market trading on Tuesday, after the insurer posted a surprise loss for the fourth quarter.

Guaranteed Universal Life Insurance - The life insurer reported losses of US$57 million (RM252.55 million), while analysts anticipated a profit of US$1.1 billion. At its individual life unit, Prudential sustained a one-time hit from transaction costs related to the reinsurance of guaranteed universal life policies, it said in a statement on Tuesday. That unit posted adjusted operating losses of US$57 million.

For the quarter, the firm said it sustained US$1.5 billion of pre-tax net realised investment losses and related charges and adjustments. As at 5.07pm, Prudential shares had fallen 2.9% to US$114.50 in extended trading in New York.

The firm issued several targets for the 2025-2027 period, including its goal to grow its core adjusted operating earnings per share by 5% to 8% over the period. It also aims to keep its adjusted operating expense ratio at 8.5% to 10.5%.

Newark, New Jersey-based Prudential is mapping out its next phase of growth, as chief executive officer Charlie Lowrey is expected to step down next month and be replaced by Andy Sullivan.

AMMB MetLife Great Eastern Life Deal Called Off

AMMB Holdings Bhd and MetLife International Holdings LLC have mutually agreed to terminate the proposed disposal of their jointly owned insurance and takaful businesses to Great Eastern Holdings Ltd, a deal initially valued at about RM1.12 billion.

AMMB said the implementation agreement dated Oct 2, 2023 has been terminated and that the parties involved (AMMB, MetLife, and Great Eastern) have collectively decided not to proceed with the sale of AmMetLife Insurance Bhd and AmMetLife Takaful Bhd to Great Eastern Life Assurance (Malaysia) Bhd and Great Eastern Takaful Bhd.

AMMB’s wholly owned AMAB Holdings Sdn Bhd holds 50% minus one share in AmMetLife Insurance and 50% plus one share in AmMetLife Takaful. MetLife owns the remaining stakes in both entities.

The original plan stipulated that Great Eastern Life Assurance and Great Eastern Takaful would acquire 100% of the share capital in both AmMetLife entities. Following the acquisition, the two insurance and takaful businesses were intended to be merged and integrated with Great Eastern’s existing life assurance and takaful operations.

The merger also included exclusive 20-year bancassurance and bancatakaful agreements, ensuring the distribution of life insurance and family takaful products through AMMB’s network of banking subsidiaries across Malaysia.

The strategic partnership between US-headquartered MetLife and AMMB dates back to April 2014, when MetLife acquired a 50% stake in AmLife Insurance and AmFamily Takaful Bhd (later renamed AmMetLife Takaful) for RM812 million or US$249 million.

Trading of Great Eastern shares has been suspended since July 15 last year, after its parent Oversea-Chinese Banking Corporation (OCBC) acquired close to 94% of its shares following a S$1.4 billion (RM4.6 billion) bid it made in May for the remaining 11.56% it did not own in the insurance company — one of the largest in Malaysia and Singapore — to take it private. But the shareholding is not sufficient to have Great Eastern delisted from the Singapore Exchange or for OCBC to compulsorily acquire the rest of the shares it doesn't own.

Insurance Agent is Not Going Away - Yet

The demise of the independent agent has been predicted for well over 20 years, with the dawn of the internet. Fintech and insurtech like to proclaim that they are disrupting the insurance industry. The reality is that insurance agencies evolve with changes to the marketplace (technology, business environment, society, etc.), and fintech and insurtech are mostly marketing campaigns. 

There are several key factors that are driving the need for major changes to the independent insurance agency model. 

Technology
Artificial intelligence (AI) will be the biggest change catalyst for insurance agencies. Automation, from rate quoting and application processing to risk evaluation and educational resources, has encroached on tasks traditionally performed by agents. Predictive analytics and chatbots now enable self-service insurance shopping, especially for straightforward products like term life insurance and even personal lines, which are challenging agents’ roles.

When the internet was becoming popular, many thought that direct-to-consumer (DTC) sales would become standard; however, adults at that time were slow to adapt. Young adults today grew up with the internet and expect the ability to get everything directly on the internet. About two-thirds of personal lines sales are now direct-to-consumer sales, whereas only a quarter of the more complicated commercial lines sales are DTC sales. Most likely, as Gen Z ages, these percentages will increase.

More pernicious for insurance agencies than the growth of DTC sales will be changes to the insurance industry that will have a cascading effect downstream. With the advent of self-driving cars and other internet of things, personal auto coverage for self-driving cars will have no or limited liability coverage.


AI and “big data” are changing how insurance companies do business, from distribution to underwriting and claims. The insurance buying process has become significantly quicker and more automated. AI now plays a key role in assessing risk profiles based on individual behavior, allowing for near-instant policy issuance in areas like auto and life insurance.

The use of telematics and IoT devices is streamlining this further. Additionally, blockchain technology facilitates instant financial transactions, simplifies contract processing, and slashes costs for insurers, paving the way for rapid commercial insurance quoting. All this will make it less likely for the consumer to use an insurance agent.

Usage-based insurance (UBI) is becoming increasingly prevalent, with customization according to individual behavior. Insurance models are shifting from traditional purchase and renewal to continuous coverage, dynamically aligning with users’ lifestyles. Micro coverage options for specific needs, like phone battery or flight delay insurance, allow for personalized policy bundles. With the rise of the sharing economy, UBI is adapting, offering pay-per-use models for shared assets like cars and homes. Many of these types of coverage will be offered by the business selling the product or service and not an insurance agent.

The traditional methods of underwriting for most personal and small business insurance products are becoming obsolete.

Automation and artificial intelligence, including predictive models and deep learning, have expedited the underwriting process to mere seconds. This is achieved by integrating these technologies into the insurers’ tech stacks and utilizing internal and extensive external data through APIs and providers. The data, collected from various sources, including carriers, reinsurers, and distributors, proactively offers customers tailored insurance packages, with pricing reflecting their individual risk profiles. There is less and less need for an insurance agent to collect, review, summarize, and submit underwriting data.

Claims management, which is no longer a key role for most insurance agents, is increasingly handled by algorithms, diminishing human involvement.

Insurance Distribution Business Model
For most of the 20th century, the typical insurance agency was a local small business. Generally speaking, during that timeframe, only very large businesses had the need to seek out insurance brokers with specialized skills and services (like AON, Marsh McLennan, etc.).

Consolidation of insurance agencies started picking up steam in the 1990s. The national brokers started acquiring large premier agencies across the country. Regional brokers grew by acquiring small and mid-sized insurance agencies.

Mergers and acquisitions grew exponentially with the turn of the century. Acquisitions were the growth strategy for the national (publicly traded) brokers. Private equity (PE) money realized the insurance industry was lucrative and jumped in with both feet. Now most of the national brokers are or were backed by PE money.

Due to the M&A frenzy of the past 20-plus years, there are few large, privately owned independent insurance agencies. More often than not, the local privately owned insurance agency is a firm with fewer than 10 employees. Consumers are presented with the binary of working with a national broker with deep resources or a local privately owned firm with limited resources. These small, privately owned firms face the pressure of competing against professionally managed competitors with a plethora of products and services that only a large firm can offer.

Despite the growing juggernaut of national brokers, it seems easier to start an insurance agency now compared to 50 years ago.

Obtaining the first carrier appointment was the largest hurdle to starting an agency. Networks, aggregators and franchises have been created to provide market access to the small agency, removing the largest hurdle and immediately making the new agency viable.

Clusters, networks, aggregators and franchises are becoming an incubator for new agencies. Agency franchises and some networks not only provide market access, but some also include back-office support, such as accounting and customer service staff. The branding, agency automation system, procedures, etc., are consistent.

Typically, the new franchisee will pay an initial franchise fee (often $25,000 or more), and then the commissions are paid to the franchisee at a lower rate to offset the support cost. Some may just have a flat monthly fee. These options also have the benefit of operating a small agency while being part of a larger organization.

Societal Changes
The last of the baby boomers is slowly exiting the industry. The issue is a growing population gap since the generation in-between, Generation X is smaller than both the Baby Boomer and Millennial groups. So, people in their 60s will be replaced by people in their 20s because there is a lack of people in their 40s and 50s.

This will shift how agencies operate because young people think differently and have different values. This age gap also means an experience gap. The 20-plus year seasoned producer or manager will be replaced by someone with less than 10 years of experience. The efficiencies built by experience will be lost while the younger generation comes up to speed. On the other hand, the next trend might play well into the Millennials’ lack of experience with the current business model.

Consumers today expect a seamless experience across both digital and physical sales channels, with the ability to quickly get answers to simple inquiries, as well as conduct in-depth research. They want the convenience of purchasing straightforward products like car insurance without complications. Additionally, for more complex insurance products, there’s a desire for real-time interactions with agents through both digital and in-person means.

The pandemic revealed that many routine interactions, such as simple consultations and account maintenance, can occur without in-person contact. Digital platforms often provide a more suitable environment for activities like research.

Nevertheless, there remains a selective preference among customers for in-person engagements with agents for specialized advice and the final steps of service. With a significant reduction in in-person visits to agencies and a decrease in direct customer interactions, insurers are challenged to develop new strategies for lead generation.

The traditional insurance agent, reliant mainly on personal appeal and interpersonal skills, is becoming less common. Their modern counterparts will need to be adept in various new skills and use digital resources. They are expected to engage with customers more often, primarily through digital means, and utilize AI-powered analytics to enhance service efficiency. Agencies that have not already adapted to the consumers’ expectations will not survive.

Conclusion
Independent insurance agencies are not going away. The human touch will remain crucial, especially when dealing with complex insurance products that require nuanced understanding and personal advice. Agencies must adapt to changing consumer behaviors and expectations, changes from new technology, and changes to insurance companies.

Everything is changing, and it is changing rapidly. To remain competitive, agencies must focus on agility, customer-centricity, and tech-savviness while maintaining the core strengths of personalized service and expertise. All this means that the agency of the future will be very different compared to agencies today.

Independent Insurance Agent

When you decides to purchase insurance, you may wonder where to start. These days, you can buy your insurance from an agent or even, from some providers, directly online. But even if you decide you prefer working with an agent, which kind should you choose? There are several types of insurance agents, including captive agents, who work with just a single company, and independent insurance agents, who represent multiple companies. So when is an independent insurance agent the right person to help you? 

What is an independent insurance agent?
An independent agent represents multiple insurance companies to offer a broader range of insurance products to help meet consumer needs. Meanwhile, captive agents represent just one insurance company, offering only the products offered by that specific company.

The benefits of choosing an independent agent
Before you look for an independent agent to work with, decide if an independent or captive agent is right for you. To help you make an informed decision, we’ll cover the advantages and disadvantages of working with an independent agent.

What are the advantages of independent insurance agents?
There are several potential advantages to working with independent insurance agents vs. captive agents. There are no extra costs when working with an independent agent, and it can save the customer time by allowing the agency to shop for quotes from multiple insurance companies. An independent agent may be able to find a better deal for your insurance needs than you can. Ultimately, you will need to decide if these and other possible advantages are beneficial to you.

Multiple quotes from different companies
One of the best benefits of working with an independent insurance agent is having them shop for insurance quotes for you. With access to multiple companies, the agent can check rates and coverage types with multiple companies at once. When working with an independent agent, you only have to provide your pertinent information once, saving yourself time. Independent insurance agents may also know which companies have the qualities you’re looking for, which will also save you time and could potentially save you money.

Agent can stay with you if you switch providers
When your policy comes up for renewal, reach out to your independent agent if you receive a rate increase. They can shop for competitive rates to help you decide if you should stay with the same company or switch. Even if you switch insurer, you can stay with the same agent. This can allow you to maintain a relationship with your independent insurance agent no matter what company you choose for your insurance policies.

Personalized customer service
While captive agents can also provide customer service tailored to the strengths of a specific company, independent insurance agents may be more motivated to work hard to keep your business. This means answering questions about rates, coverage and claims or filing claims on your behalf. If issues arise with your coverage, you can call on your independent insurance agent to help resolve your problem.

Your best interests
An independent agent has a legal duty to act ethically and put your best interests first. They thoroughly review your individual circumstances and needs before exploring the wide range of options they have access to in order to help find you the best insurer and product for you.
Smaller insurance companies

What are the disadvantages of independent insurance agents?
While there are several potential advantages to working with an independent insurance agent, there are also some possible drawbacks.

Knowledge of policies
One benefit of working with a captive agent is they are often experts on the company they represent. This means they know the ins and outs of the policy options, coverage, available discounts and how to get you the best deal with the insurance company. 
Independent agents in insurance represent multiple companies and, therefore, may be stretched a bit thinner in regard to in-depth knowledge.

Less support for the agent
Independent agents don’t have the backing of a large insurer in the same way captive agents do. This may mean having fewer easily accessible resources and being required to be more proactive in finding training and support.

Fewer large insurance companies
Some large well-known companies, like State Farm, do not work with independent agents. Therefore, while independent agents are able to provide products and rates from multiple insurers, they may not have access to specific companies you may be interested in.

Potential conflict of interest
While an independent agent has a legal duty to act in the best interest of their client, there might be a conflict of interest for the agent if one insurance provider pays a higher commission than another. To act ethically, the agent should present the advantages and disadvantages of both providers, regardless of the commission offered.

India Medical Insurance Premium Capped at 10%

In a significant relief for senior citizens, the Insurance Regulatory and Development Authority of India (IRDAI) has imposed a limit on annual health insurance premiums. The regulator has stated that insurance companies cannot increase premiums for senior citizens by more than 10 percent.

The regulator, in a press note issued on January 30, 2025, said that the insurance companies should consult with it before:

1. If the increase proposed is more than 10% per annum.
2. In case of withdrawal of individual health insurance products offered to senior citizens.

The most vulnerable age group is senior citizens with limited sources of income, and this group is impacted the most when there is a steep increase in health insurance premiums. This matter has been engaging the attention of Irdai and is a regulatory concern. 

This ensures transparency and prevents abrupt changes that could leave seniors without necessary coverage. It added that the premium rate is primarily based on the estimated claims outgo and the expenses including acquisition costs incurred by the insurance company for acquiring and servicing the insurance policies. The claim outgo is largely dependent on the amounts charged by the hospitals for various treatments/surgeries.

Moreover, Irdai has instructed insurance firms to facilitate the joint empanelment of hospitals and establish negotiated package rates similar to those of the Pradhan Mantri Jan Arogya Yojana (PMJAY) scheme.

Unlike the Pradhan Mantri Jan Arogya Yojana scheme where the hospitalization expenses are negotiated centrally for package rates and are thus standardized across hospitals. There is no such thing in case of health insurance products. This is leading to higher hospitalization costs resulting in higher claims outgo under health insurance products offered by insurers.

IRDAI said the regulatory framework mandates that all insurers create a dedicated channel to handle health insurance claims and grievances for senior citizens. This information must be readily available on the insurer's website for easy access.

In April 2024, the IRDAI eliminated the age limit of 65 years for individuals looking to purchase health insurance policies. They directed insurance companies to provide health insurance options to individuals of all age groups. Furthermore, the waiting period for pre-existing conditions was decreased from four to three years. These regulations have been in effect since April 1, 2024.

Foreign Workers Fraud Korea

A group of foreign workers who intentionally injured themselves to fraudulently claim industrial accident insurance and obtain visas have been apprehended, along with a Korean broker who orchestrated the scheme.

The Busan Metropolitan Police’s criminal task force announced on Wednesday that it had arrested a broker in his 40s and 13 Uzbek nationals on charges of fraud and violating the Industrial Accident Compensation Insurance Act.

The suspects allegedly fabricated injuries between August 2022 and July 2024, submitting false claims to the Korea Workers’ Compensation and Welfare Service. They reported the injuries as work-related accidents to fraudulently receive approximately 500 million won ($380,000) in medical and leave allowances. Additionally, they secured industrial accident visas, allowing them to remain legally in Korea for over a year.

According to police, the broker, who previously worked in an administrative scrivener’s office, recruited a foreign interpreter and approached undocumented migrants or those nearing the end of their visa periods at restaurants and construction sites. The broker reportedly promised them access to both industrial accident insurance payouts and G-1-1 special visas, enabling legal residency.

The foreign workers colluded with the broker, using knives, hammers, axes or rocks to intentionally amputate or severely injure their fingers. The broker fabricated documents from fake workplaces, claiming the workers were injured on the job, which the suspects then submitted to the Workers’ Compensation and Welfare Service.

The scheme resulted in approximately fraudulent insurance payouts totaling 500 million won. The broker received fees of up to 15 million won per case, pocketing around 150 million won in total, while each foreign worker unlawfully received up to 31 million won. Investigations also revealed that some workers continued to work legally under their new visa status.

Who is Jadav Payeng

Payeng, affectionately known as the “Forest Man of India,” stands as a beacon of hope and resilience in the fight against climate change. His remarkable journey began in 1979 when, at just 16 years old, he was profoundly affected by the sight of snakes dying on a barren sandbar due to drought. This heart-wrenching experience ignited his passion for environmental restoration, leading him to transform 1,390 acres of desolate land into the thriving Molai Forest.

A Visionary Act of Reforestation
In April 1979, Payeng embarked on his mission by planting trees on the barren sandbar of the Brahmaputra River. Over the next four decades, his relentless dedication resulted in a lush forest that is now home to diverse wildlife, including Bengal tigers, Indian rhinoceroses, elephants, and various bird species. The Molai Forest not only revitalized the local ecosystem but also serves as a natural carbon sink, playing a crucial role in combating climate change and promoting biodiversity.Payeng’s approach to reforestation was innovative; he used earthen pots with tiny holes to provide water to saplings over several days. This method ensured that each plant received adequate hydration while he continued to plant new trees. Today, the Molai Forest boasts thousands of trees, including species such as himolu, valcol, arjun, ejar, goldmohur, koroi, and moj. Over 300 hectares are covered in bamboo, creating a habitat that supports over 120 species of birds and numerous mammals.

Recognition and Awards
Jadav Payeng’s monumental contributions have garnered significant recognition. In 2007, a turning point occurred when a photojournalist stumbled upon Payeng’s profound endeavor. The subsequent article brought attention not only to the Indian government but also to the entire nation. In 2012, he was honoured by the School of Environmental Sciences at Jawaharlal Nehru University on Earth Day (April 22) for his remarkable achievements. The Vice-Chancellor at that time, Sudhir Kumar Sopory, famously dubbed him the “Forest Man of India.”In 2015, Payeng received the Padma Shri, India’s fourth-highest civilian award, acknowledging his tireless efforts toward environmental conservation. His journey has also been documented in films such as Foresting Life and Forest Man, which celebrate his life’s work and inspire countless individuals worldwide.

An Inspiration for Pro-Planet People
Jadav Payeng embodies the spirit of “Pro Planet People,” individuals who prioritise ecological sustainability and inspire others to take action. He believes that individual actions can lead to monumental changes. His philosophy emphasises education; he encourages young people to connect with nature and understand their vital role in preserving it.His story resonates with many who seek to make a difference in their communities. By demonstrating that one person’s passion and perseverance can yield significant ecological restoration, Payeng inspires others to take action—whether through tree planting or broader environmental initiatives.

A Legacy of Hope
Today, Jadav Payeng continues to nurture the Molai Forest while living with his family nearby. His commitment remains unwavering as he travels daily to tend to the trees he planted decades ago. As he reflects on his journey, he urges everyone to follow suit: “If you want to make a difference, start planting trees.”The Molai Forest stands not only as a testament to Payeng’s dedication but also as a beacon of hope for future generations. It invites visitors from around the globe to witness the beauty of nature restored through love and effort.In an era where climate change poses an existential threat, Jadav Payeng’s life serves as a powerful reminder that we all have a role to play in nurturing our planet. Through his example, we are encouraged to take action—planting trees, protecting habitats, and fostering a sustainable future for all.

Additional Context
Jadav Payeng’s legacy is further enriched by historical context; after an initial reforestation project by the social forestry division was abandoned in 1983 after planting just 200 hectares (500 acres), it was Payeng who took it upon himself to nurture this land into what is now known as Molai Forest. His innovative methods included building bamboo platforms with earthen pots to gradually water saplings over time—a solution born out of necessity given his solitary efforts.The forest today not only serves as a habitat for numerous species but also plays a vital role in regulating water cycles and supporting biodiversity on Majuli Island. This area has historically faced threats from flooding and erosion due to its geographical location along the Brahmaputra River.Moreover, documentaries about Payeng’s life have brought international attention to his work, inspiring educational initiatives worldwide. His story has been incorporated into school curricula across various countries as an example of how individual actions can lead to significant environmental benefits.As Jadav Payeng continues his mission—now aiming to reforest another sandbar—his belief that “the trees talk to him” resonates deeply with those who understand the interconnectedness of life on Earth. His life’s work stands as a testament that one person can indeed make a monumental difference in restoring ecological balance and inspiring others along the way.

The Logical Indian’s Perspective
At The Logical Indian, we believe that stories like Jadav Payeng’s exemplify the power of individual action in creating positive social change. His unwavering commitment to restoring nature reflects our values of empathy and coexistence with all living beings. In an increasingly fragmented world, Payeng’s journey reminds us that kindness towards our environment fosters harmony within our communities. How can we collectively harness our efforts to contribute positively towards our planet? We invite you to share your thoughts and experiences in the comments below!

Leadership Trending 2025

The most effective leaders will adapt to coming challenges by embracing strategies that foster greater innovation, employee well-being and agility. Here is why and how - 

1. Leveraging Artificial Intelligence and Technological Integration
The integration of AI and other cutting-edge technologies into the workplace is no longer optional for leaders—it’s an imperative. In the coming year, leaders must go beyond just understanding these technologies; they need to actively leverage them to enhance decision-making, streamline processes and gain a competitive edge.

No matter the industry, the best leaders can use AI-powered tools to analyze large datasets quickly, providing them with actionable insights for strategic planning. AI can transform their operations, not with the goal to reduce personnel but to move human talent to more high-value, customer-focused and creative roles. Leaders who embrace this trend will need to foster a culture of technological curiosity within their teams, ensuring employees are equipped and empowered to use these tools effectively and to push the bounds of the status quo. Balancing human ingenuity with AI capabilities will be a defining factor of successful leadership in 2025.

2. Prioritizing Employee Well-being and Mental Health
Over the past few years, factors from the Covid pandemic and increased social isolation and the increasingly divisive nature of society have underscored the importance of mental health and well-being in the workplace. Leaders in 2025 need to place greater emphasis on creating supportive environments where employees feel valued, safe and able to perform their best—no matter what is happening in the world around them.

This trend involves implementing wellness programs, support networks, flexible work and fostering a culture that prioritizes real work-life balance. The best leaders are recognizing that employee well-being is directly linked to the best work outcomes. Organizations that proactively address mental health challenges and model self-care practices will create places to work that can thrive emotionally and operationally.

3. Embracing Agile Leadership
Agility is becoming a cornerstone of effective leadership like never before. In every organization I visit, change has become a constant. Agile leadership during times of transformation involves the ability to adapt quickly, make decisions with limited information, and empower team members to respond to changing circumstances with confidence.

Leaders in agile cultures focus on fostering a steady stream of open communication. They also encourage collaboration among teams and maintain an approach to problem-solving that keeps customers’ needs at center of innovation. In addition, they encourage their people to experiment and even fail in responding to evolving challenges. This agile approach not only enhances organizational resilience but ensures that leaders have the support and ideas of their team members in navigating the complexities of shifting consumer behaviors and technological disruptions.

The Leadership Imperative
The most effective leaders of 2025 will be defined by their ability to integrate technology seamlessly, prioritize the well-being of their people, and lead with agility. These trends reflect a shift toward more human-centric and adaptable approaches to leadership, emphasizing the need to balance innovation with empathy. Leaders who cultivate these traits will be better positioned to thrive in an increasingly complex and competitive environment.

As the year unfolds, the question isn’t whether these trends will shape leadership but how effectively leaders will rise to meet these challenges.

Indonesian Prefer Endowment Policy

The life insurance sector in Indonesia is on a trajectory to achieve a valuation of $12 billion in gross written premiums (GWP) by the year 2028. This growth is forecasted at a compound annual growth rate (CAGR) of 3.8% from the year 2024, escalating from IDR161.3 trillion (US$10.5 billion) to IDR187.2 trillion (US$12.1 billion) within a four-year span.

This optimistic outlook emerges despite a preceding phase of slowed growth, highlighted by a downturn in the sales of endowment insurance policies, expected to dominate life insurance premiums by nearly 70% in 2024.

Indonesian life insurance market forecasts - a looming 2.0% shrinkage in the industry in 2024, following a 5.4% reduction in 2023. Factors contributing to this trend include a downturn in investment-linked insurance product sales amid global financial uncertainties and a shift in consumer preference, impacting new premium acquisitions.

Nonetheless, a resurgence is anticipated in 2025, fuelled by a rising demand for traditional life insurance offerings and evolving demographic dynamics in Indonesia.

Indonesian endowment insurance market forecasts - Endowment insurance, claiming a substantial 69.3% of the GWP in 2024, is foreseen to witness a 7.0% decrease in the same year, subsequent to a 10.9% fall in 2023.

These contractions are largely attributed to enduring market volatilities, deterring long-term returns and swaying consumer interest towards more traditional insurance plans focused on long-term security and protection.

In a bid to counteract these trends, regulatory enhancements initiated by the Financial Services Authority of Indonesia (OJK) in January, aimed at reinforcing investment-linked insurance product marketing, are expected to cultivate consumer trust and favorably impact endowment insurance growth, with a projected CAGR of 1% through 2024 to 2028.

Indonesian PA&H insurance market forecasts - Additionally, the personal accident and health (PA&H) insurance category, positioned as the industry's second-largest segment and representing 13.8% of the GWP in 2024, is poised for a 13.1% expansion in the same year.

The segment's growth is bolstered by an uptick in health awareness, escalating medical expenses, and demographic shifts, including an aging population and extended life expectancy projections. The PA&H insurance segment is projected to exhibit a CAGR of 10.8% between 2024 and 2028.

Indonesian term life insurance market forecasts - Term life insurance, accounting for an estimated 12.9% share of Indonesia's life insurance GWP in 2024, is slated for a 9.8% growth due to demographic changes and an increase in consumer disposable income.

Innovations by insurers, including the introduction of cost-effective term insurance plans, are anticipated to further stimulate term life insurance growth, with an expected CAGR of 7.9% from 2024 to 2028.

Fraud At Taiping Insurance

Xiao Xing, former deputy general manager of State-owned China Taiping Insurance Holdings Co Ltd, Xiao Xing, former deputy general manager of State-owned China Taiping Insurance Holdings Co Ltd, was sentenced to life imprisonment for bribery on Monday, according to a court in Central China. A court in Xinxiang, Henan province, ruled on Monday that all of Xiao's personal assets would be confiscated.

Previously, Xiao held several other management positions, including general manager of China Life Insurance's Shanghai branch and general manager of Taiping Asset Management Co Ltd.

The court found that from 1998 to 2023, Xiao took advantage of his positions to assist relevant units and individuals with financing loans, business cooperation, job placements and other matters through the actions of other state employees.

He illegally accepted property worth more than 81.5 million yuan ($11.2 million) directly or through other means, according to the court. Xiao was granted a lenient sentence, given certain facts, including his willingness to cooperate with investigators and return illegal gains, the court said.

Los Angeles Wildfires & Impact on Insurance

Wildfires that have ravaged swaths of Los Angeles could result in losses of as much as US$30 billion (RM135 billion) for the insurance industry as the blazes rage on almost a week after they ignited.

US$20 Billion Estimated Damaged - The new estimates from analysts prediction significantly exceed last week’s highest prediction that the fires stood to cost insurers roughly US$20 billion.

Home insurance providers will bear the brunt of the cost. Allstate Corp, Chubb Ltd, American International Group and Travelers Cos are the most exposed among the firms covered by Wells Fargo analysts, according to a note the bank sent to clients on Jan 12.

The most exposed insurers not covered by the bank include Mercury General Corp. and Cincinnati Financial Corp, according to the analysts.

Global Impact - Global property and casualty insurers are also beginning to acknowledge the disaster’s impact. 

Japan’s Tokio Marine Holdings Inc is “making group-wide efforts to pay insurance claims to those affected as quickly as possible. Tokio Marine, along with Japan’s MS&AD Insurance Group Holdings Inc and Sompo Holdings Inc, are collectively exposed to about 3% of insured damage from the California fires. 

Los Angeles is grappling with a second week of wind gusts exacerbating wildfires and hindering firefighters’ efforts to contain them. At least 24 people have died and more than 12,000 buildings across over 40,000 acres in the Pacific Palisades and Altadena neighbourhoods burned to the ground.

Industry analysts estimated insured losses between US$10 billion and US$30 billion, likely rising to around US$40 billion when taking into account uninsured losses, according to a note dated Jan. 13. The fires are expected to have a drag on US nonfarm payrolls growth of 15,000 to 25,000 in January.