Informal Workers Insurance Indonesia

Indonesia is cutting work accident and death insurance premiums in half for non-wage earners. The discount targets informal workers including traders, influencers, and ride-hailing drivers.

The transportation segment covers app-based drivers, non-app drivers, and couriers, with the discount running January 2026 to March 2027. Other informal worker categories receive the discount from April through December 2026.

The policy lowers contributions so more informal workers can be protected. Coverage benefits remain intact even though premiums are reduced. Benefits continue to include accident compensation, death benefits, and family scholarships. The scheme aims to sustain participation among informal workers under macroeconomic strain.

Eligible groups also include freelancers, fishermen, and farmers alongside traders and drivers. Influencers are explicitly named as recipients of the discount.

The government separately set a minimum Religious Holiday Bonus standard for digital platform workers. The benchmark equals 25% of the worker's average net income over twelve months.

The combination of premium relief and the bonus benchmark aim to broaden the safety net for informal workers. Implementation will run through the BPJS Ketenagakerjaan enrollment system.

Risk Base Pricing Motor Insurance

Motor vehicle insurance in Malaysia could be priced with greater dependence on a driver’s safety, aimed at reducing road crashes and rewarding responsible motorists. The proposed risk-based pricing model for motor insurance aims to reward safer driver lower premiums.

Currently, there is a degree of cross-subsidization where lower-­risk motorists are offsetting the higher claim cost of others. PIAM is working closely with Bank Negara Malaysia and related government agencies to see how we can further improve road safety and behavior.

In comparison with the current motor insurance framework that rewards drivers based on their no-claims discount (NCD) claims history, the risk-based pricing model incorporates a wider range of factors, including driving behavior, accident frequency, traffic offences, vehicle usage patterns and other relevant underwriting indicators in order to more accurately reflect an individual’s risk exposure.

Risk-based pricing is already standard for most insurance products, such as medical insurance. Pricing depends on the cost incurred through claims, which are then translated into the premiums paid. While motor insurance remains a regulated industry, any enhancements to the framework implemented must remain fair, transparent and appropriate for consumers. The end goal is to reduce the number of road accidents and road fatality rates.

A major pillar of the initiative is to build supporting infrastructure with industry, ideally requiring reliable, timely data from relevant enforcement and regulatory agencies to establish a comprehensive, integrated claims and risk database.

This allows better predictive modelling, allows early identification of high‑risk driving patterns, supports incentivizing good driving behavior and identifies interventions required for risky driving behavior in alignment with the public road safety agenda.

The motor insurance segment of the general insurance industry posted losses of RM289.3 million in 2025.  where a combined ratio of 103% reflected that claims payout exceeded premiums collected, and the average cost per claim increased by about 20% to RM8,831 in 2025.

Medical Tourism Penang, Malaysia

Penang recorded strong growth in its medical tourism sector, with foreign patient numbers rising to 527,176 in 2025. This represents a 25.94 per cent increase compared to the previous year.

The increase in medical tourism generated revenue of up to RM1.136 billion, which is a 26.6 per cent annual increase compared to RM898.07 million in 2024. The data from the Penang Centre of Medical Tourism (PMED), covering 16 private hospitals in the state, showed foreign patient numbers stood at 418,608 in 2024.

Penang is also actively promoting medical tourism overseas, including in China, Indonesia, Singapore, Taiwan and Myanmar, in collaboration with Penang Global Tourism, the Malaysia Healthcare Travel Council and Tourism Malaysia.

Malaysia General Insurance 2025

Malaysia’s general insurance industry recorded higher underwriting profits in 2025, with gains in fire, marine, and personal accident classes helping to counter continued losses in motor, according to data from the General Insurance Association of Malaysia (PIAM).

Industry results and business composition
PIAM reported that the general insurance market generated gross written premium (GWP) of RM24.2 billion in 2025, up 4.8% from RM23.1 billion a year earlier. Underwriting profit increased to RM1.2 billion, RM125 million higher than in 2024, with the industry’s overall combined ratio reported at about 93%. Motor insurance remained the largest class of business, contributing 45.2% of total premiums. Fire insurance accounted for 20.9%, while personal accident (PA) represented 6.5%. Taken together, motor, fire, and PA delivered overall premium growth of 6.1% for the general insurance sector in 2025.

Motor premiums grow, but line remains in loss
Motor GWP rose to RM10.9 billion in 2025, representing year-on-year growth of 5.0%, compared with 6.7% in 2024. Despite the increase in premiums, the motor segment remained in an underwriting loss position, with a deficit of RM289.3 million and a combined ratio of 103%. The modest improvement of 0.7 percentage point in the combined ratio relative to 2024 was linked to stricter underwriting practices. However, higher costs in the private car segment continued to push claims above premiums. Claims experience reflected both sustained frequency and higher average claim amounts. Private car claim frequency remained above 7% during 2025, with higher incidence observed in high-volume models such as the Proton X50 and X70, where a larger share of drivers are younger. Average claim severity for private cars increased to RM8,831, reflecting spare parts inflation across models including the Proton Saga and Proton X50.

Fire, MAT, and PA provide underwriting support
Fire insurance, the second-largest class in the portfolio, posted GWP of RM5.0 billion in 2025, compared with RM4.7 billion in 2024, an increase of 6.9%. The line reported underwriting profit of RM700.8 million and a combined ratio of 69.5%. Premium growth in fire was attributed to higher sums insured on residential sub-sales and rising rebuild costs, with more exposure associated with older landed properties in suburban areas.

Marine, aviation, and transit (MAT) business saw a small decline in top-line premium but remained profitable overall. MAT GWP decreased 2.2% to RM1.79 billion from RM1.83 billion in 2024, amid softer conditions in offshore oil-related and cargo segments. These two segments accounted for 37.6% and 33.9% of the MAT portfolio, respectively. The MAT class generated underwriting profit of RM108.1 million with a combined ratio of 73.1%, lower than the RM161.8 million in underwriting profit reported for 2024. Cargo and marine hull lines together accounted for nearly 90% of MAT business.

Personal accident insurance continued to expand in volume. GWP in PA rose 12.2% to RM1.6 billion in 2025 from RM1.4 billion in 2024. Higher demand for travel insurance, in line with ongoing recovery in outbound travel since 2023, together with wider adoption of digital distribution and a firmer economic backdrop, supported premium growth. Policy uptake was particularly strong for destinations where the ringgit provides relatively higher purchasing power.

Electric Vehicles Fire Risk

There has been speculation online that electric vehicles (EVs) pose a major fire risk and that insurance companies may refuse to cover damages if an EV catches fire at home or inside a building car park. However, the General Insurance Association of Malaysia (PIAM) says standard fire insurance policies generally still apply regardless of whether the fire was caused by an EV, a petrol-powered vehicle or other electrical sources. PIAM said that the fire insurance coverage is based on the fire incident itself, and not specifically the type of vehicle involved.

Higher Fire Risk - According to available data and statistics do not indicate that EVs have a higher fire risk compared to petrol or diesel vehicles. In fact, PIAM said ICE vehicles currently present a higher fire exposure risk than EVs.

Malaysia’s Fire and Rescue Department (BOMBA) has also stated that the risk of fire in EV is far lower than combustion vehicles. Data from the United States and Europe, which showed that EVs catch fire less frequently than gasoline-powered cars.

There were 1,530 fires per 100,000 gasoline vehicles (1.53%) and 3,475 fires per 100,000 hybrid vehicles (3.48%). Meanwhile, there were 25 fires per 100,000 EVs (0.025%).

2025 Industry Performance - PIAM’s latest industry report, fire insurance remained one of the strongest-performing business segments for Malaysia’s general insurance industry in 2025.

PIAM said fire insurance recorded RM5.0 billion in Gross Written Premium (GWP) last year, representing 20.9% of the overall portfolio and making it the industry’s second-largest business line after motor insurance.

The segment also posted an underwriting profit of RM700.8 million with a Combined Ratio of 69.5%.

Fire insurance growth was driven largely by higher rebuild costs and inflation in residential property values, especially for older landed homes in suburban areas.

31,517 Declared Bankrupt - 2021 - 2026

Malaysia recorded a total of 31,517 bankruptcy cases from 2021 to March 2026, with nearly half of them stemming from personal loans. Official data shows that 14,582 cases, or 46 per cent, were categorized as bankruptcies due to personal debt pressure.

4,704 cases, or 15 per cent of the total, involved individuals aged 34 years and below. The data highlights the importance of awareness about financial management and financial literacy from an early stage, especially among young families in planning their financial commitments based on their respective capabilities.

The government is currently focusing efforts on providing a “second chance” to four target groups: single parents, micro-business operators, victims of financial scams, and victims of abandoned housing projects. This policy allows those affected to restart their lives and reorganize their finances. For example, some individuals become bankrupt not solely due to poor financial management, but because of misfortunes such as purchasing homes that were never completed while still having to bear the debt burden.

The government has also enhanced the bankruptcy discharge criteria by raising the debt threshold from RM50,000 to RM200,000 to give greater opportunity for affected individuals to exit bankruptcy status.

Fraudulent Insurance Claim - Vietnam

Phú Thọ Provincial Police has detained and launched legal proceedings against members of a scam ring who allegedly intentionally fractured their own bones to fraudulently obtain insurance payouts.

Tạ Minh Châu, 20, a former staff member at the formerly Cẩm Khê District’s medical centre, was identified as the ringleader. Châu is accused of having devised a tightly organized and inhumane scheme for insurance fraud by taking advantage of his professional experience in the healthcare sector, as well as his knowledge of human anatomy and insurance payout mechanisms.

Investigation documents said that Châu personally persuaded many locals in the area to purchase insurance. After their contracts became effective, he inflicted injuries on the policyholders to create claims for compensation.

Châu allegedly injected them with anaesthetics, then used syringes, claw hammers, and other objects to fracture and chip their bones, resembling injuries from real accidents.

He then instructed them to stage fake accident scenes, such as falling due to an electric shock or into a stream, to legitimise medical records.

At least seven of his accomplices have been identified. They allegedly purchased insurance policies under Châu’s instructions and agreed to let him cause injuries to them.

Using Châu’s method, the group is said to have unlawfully obtained more than VNĐ6 billion (US$228,000) from multiple life insurance providers.

Police assessed this scheme as extremely cruel, showing blatant disregard for human life and health. The injuries were also deliberately inflicted at locations on the body that would yield the highest insurance payouts, making it difficult for insurance companies to detect fraud.

Malaysia RM9.4 Billions Medical Claims

Medical claims - rose 5.3 per cent in 2025 from a year earlier, making up the largest share of total payouts at 53.9 per cent, according to the Life Insurance Association of Malaysia (Liam).
In its 2025 annual report, Liam said medical claims increased to RM9.4 billion from RM8.9 billion in 2024.

Liam said total claims payouts, including death, disability, medical, bonuses and other benefits, rose 3.4 per cent to RM17.4 billion in 2025 from RM16.8 billion in 2024. Disability benefits, which accounted for 0.9 per cent of total payouts, recorded the sharpest growth, surging 77.4 per cent from RM89 million in 2024 to RM157.9 million in 2025.

Premium Growth - In force premium rose 3.1 per cent to RM50.7 billion from RM49.1 billion in 2024, driven mainly by a 9.4 per cent increase in group policies and a six per cent rise in investment-linked policies. Traditional policies, however, declined 2.9 per cent to RM15.6 billion.

The total sums assured in force rose 2.8 per cent to RM2.11 trillion in 2025 from RM2.05 trillion in 2024, while investment-linked policies recorded a 4.4 per cent increase to RM1.09 trillion in 2025. This was followed by group policies sums assured in force which grew by 2.6 per cent to RM721.3 billion in 2025 whereas sums assured in force of traditional policies fell 2.6 per cent.

Number of Policies - in force edged down 2.3 per cent to 12.7 million units in 2025 from 12.9 million units a year earlier. It noted that investment-linked policies in force increased 1.9 per cent to seven million units, while group policies slipped 1.5 per cent and traditional policies declined by seven per cent.

Several insurers have barred their agents from “engaging in or promoting” cash trust schemes as regulators step up enforcement of these products, which are often marketed with the promise of high or guaranteed returns.

Internal circulars issued across the industry show what looks like a coordinated move to prohibit agents from offering cash trust schemes amid growing regulatory concern about their legality, structure and potential risks to investors.

These shifts reflect a general caution to firm restrictions as the Securities Commission Malaysia (SC) begins to assert its oversight on a segment that has long been in a regulatory grey area. The notices issued warn that such schemes are often associated with “high or guaranteed returns”, may involve unlicensed activities and carry the risk of misleading representations.

The industry’s response suggests that regulated financial institutions are moving ahead of formal rules to insulate themselves from any potential fallout. Insurers, whose agency networks often double as distribution channels for a range of financial products, appear particularly sensitive to the risk that agents’ involvement could mislead customers into believing such schemes are regulated.

The circulars explicitly warn that even informal referrals or information-sharing could be construed as endorsement. The circulars stress that the insurance companies do not run cash trust schemes and caution that any involvement by agents could create the false impression of company endorsement. 

Cash Trust Products - which allow clients to place funds with a trustee company to be managed on their behalf, occupy an unusual position in Malaysia’s financial services ecosystem. Unlike bank deposits, these products are not covered by deposit insurance protection. At the same time, they have historically fallen outside the direct supervisory remit of both Bank Negara and the SC, leaving the products in what market participants often describe as a regulatory “no man’s land”.

In practice, some cash trust schemes have been marketed as low-risk instruments capable of generating steady returns, sometimes exceeding 10% annually, through investment activities or money-lending arrangements.

The structures can resemble deposit-taking or pooled investment schemes, but without the licensing requirements imposed on banks, fund managers or unit trust operators. Some also impose lock-in periods of three to five years, with penalties for early withdrawal.

Indonesia Insurance Income Growth Premium Decline 2025

Indonesia's life insurance industry recorded steady growth in coverage and income in the first nine months of 2025, despite a slight decline in premiums, according to the Indonesian Life Insurance Association (AAJI).

AAJI data from 56 life insurers showed the number of insured persons reached 151.56 million as of September 2025, up 12.8% year on year. AAJI claim the increase reflects rising public awareness of the need for long-term financial protection.

Both individual and group segments expanded. Individual policyholders rose 16.9% to 22.32 million, whilst group insured lives increased 12.1% to 129.25 million. Total industry income grew 3.2% to $10.28b (Rp174.21t) in January–September 2025.

Premium income, however, edged down 1.1% to $7.86b (Rp133.22t) due to a fall in single-premium sales as household purchasing power continued to recover.

AAJI said regular premiums remained resilient, rising 5% to $4.90b (Rp83.04t), indicating that consumers are shifting towards more affordable periodic payment products.

Insurance Scam, Tawau, Malaysia

A total of 80 individuals, including 78 Chinese nationals, were charged in the Magistrate’s Court here on Wednesday with jointly engaging in a criminal conspiracy to deceive victims in an insurance scam last week.

According to the charge, the group, which also includes one Laotian and one Myanmar national, allegedly conspired to deceive victims through phone and video calls while impersonating police officers from China, with the offence said to have been committed at a premises in the district at 9.25pm on April 7, 2026.

The offence, framed under Section 420 of the Penal Code and punishable under Section 120B(2) read together with Section 34 of the same Code, carries a penalty of up to six months’ imprisonment, a fine, or both upon conviction.

The court allowed bail at RM3,500 each with two local sureties, while 23 of the accused were separately charged in the Sessions Court with immigration offences committed at the same time, where they pleaded not guilty and were denied bail, with the case fixed for mention on May 25.

Malaysia RESET Medical & Health Insurance

Bank Negara Malaysia (BNM) is advancing a new base medical and health insurance/takaful (MHIT) plan under its RESET reform agenda, introducing the standardized product as part of broader efforts to manage private health financing pressures. 

The average cost of medical benefits worldwide is expected to rise by 10.3% next year, following increases of 10% in 2025 and 9.5% in 2024. Asia-Pacific is forecast to record the steepest regional increase at 14% in 2026, up from 13.2% in 2025 and 11.8% in 2024, ahead of Latin America, North America, Europe, and the Middle East and Africa. Within this environment, BNM is using RESET and the base MHIT plan to respond to affordability concerns, medical inflation, and coverage gaps in Malaysia’s private health insurance and takaful markets.

Focus on affordability, sustainability, and system linkages
Three main recurring themes: premium affordability, long-term sustainability, and the interaction between reforms in health delivery and insurance. 

RESET aims to simplify products and realign incentives
RESET is described as a multi-year program to simplify medical products, increase price transparency, and better align incentives across the healthcare financing chain. The initiative is intended to make private cover easier to understand and more predictable, while supporting its interaction with the public system. 

Insurers Outsource Fund Management

Insurance asset managers in Singapore are increasingly planning to outsource fund management to external experts, showed a study by Clearwater Analytics. The move comes amid growing demand for greater portfolio control and transparency, as insurers navigate more complex investment environments.

Among the 50 Singapore insurance asset managers surveyed, 63 per cent or nearly two-thirds said that they expect to shift more assets to external managers, while 26 per cent foresee a greater share being managed in-house. Only 11 per cent believe that the balance between internally and externally managed assets will remain unchanged.

All respondents surveyed have delegated some portion of their funds to external managers, with the percentage of externally managed funds ranging from 24 to 45 per cent. On average, Singapore insurance asset managers have 34 per cent of their funds managed externally.

Notably, the need for greater control over investment portfolios was the top reason cited by insurance asset managers in the Republic for the shift towards outsourcing fund management, said the study.

This was followed by the need for transparency and reporting. Other factors, such as increased visibility of investment portfolios, and the improved reputation and increased acceptance of using external managers, followed closely as reasons for this shift.
ith data-management challenges set to intensify, 84 per cent of the Singapore respondents plan to increase the diversification of their investments across a wider range of asset classes over the next three years, noted the study. In line with this, average private-market allocations are expected to grow from 20 per cent to 36 per cent of holdings in five years.

As firms seek managers with the required expertise to manage the asset classes they invest in, this should lead to an increase in the outsourcing of portfolio management. It will also result in more data in varied formats and an increasing difficulty in accessing information.

As these trends heighten operational pressures and reshape talent strategies, here were “significant skills and capability gaps” within investment management functions.

The study noted that the top strategies to combat these issues included recruiting people from a broader range of sectors or with a greater diversity of perspectives, hiring more specialists in risk-management roles and adding new tools or platforms to compensate for system deficiencies.

Transferring more risk-management analysis away from spreadsheets and other manual processes, as well as outsourcing more to third parties, were also among the top strategies for addressing these problems.

AIA Share Buyback

Hong Kong-based insurer AIA Group on Thursday (Mar 19) announced a new share buyback program of US$1.7 billion and achieved a record value of new business (VONB) in 2025, propelled by the resilient performance of all of its segments.

The firm reported a 15 per cent rise in VONB, which gauges expected profits from new premiums and is a key barometer for future growth, to US$5.52 billion on a constant currency basis for the year ended Dec 31, compared to US$4.71 billion in the year-ago period.

Hong Kong, one of AIA’s largest contributors in terms of profit, logged a 28 per cent increase in VONB for the year on the back of strong demand from both domestic customers and mainland Chinese visitors.

The firm also bore fruit from commencing operations in additional provinces of mainland China as it recorded double-digit VONB growth in the majority of the markets.

Mainland China, AIA’s second-largest market in terms of new sales, reported a 2 per cent hike in VONB. Besides those, AIA’s 18 markets in Asia include Thailand, Singapore, Malaysia, Indonesia, the Philippines and South Korea.

AIA Thailand logged a 13 per cent rise in VONB to US$993 million for 2025, riding on strong distribution and continued investment in digital tools. The segment also reported an operating profit before tax of US$1.21 billion, placing it as the third-most profitable region behind Hong Kong and mainland China.

AIA - 2025 Record Results

The largest pan-Asian life and health insurer, AIA Group, has reported record results in 2025 with double-digit growth across key financial metrics for new business value, earnings and cash generation.

The details are as follows (with growth rates shown on a constant exchange rate basis unless otherwise indicated):

New business performance and embedded value

• Value of new business (VONB) increased by 15% to $5,516m

• Operating ROEV of 15.8%, up by 90 basis points

• EV Equity of $79.7bn, up by 14% per share on an actual exchange rate basis

IFRS earnings

• Operating profit after tax (OPAT) of $7,136m, up 12% per share

• Confident in meeting or exceeding OPAT per share CAGR target of 9 to 11 % from 2023 to 2026

• Operating ROE of 15.5%, up 70 basis points

Free surplus generation and capital

• Underlying free surplus generation (UFSG) of $6,765m, up by 11% per share

• Net free surplus generation (net FSG) up by 14% per share to $4,451m after new business investment

• Shareholder capital ratio of 221% at 31 December 2025

Dividends and share buy-backs

• Final dividend increased by 10% to 144.08 Hong Kong cents (18.40 US cents) per share

• Total dividend of 193.08 Hong Kong cents per share, up 10 %

• New $1.7bn share buy-back.

The group has a presence in 18 markets – wholly-owned branches and subsidiaries in Mainland China, Hong Kong, Thailand, Singapore, Malaysia, Australia, Cambodia, Indonesia, Myanmar, New Zealand, the Philippines, South Korea, Sri Lanka, Taiwan (China), Vietnam, Brunei and Macau, and a 49% joint venture in India. In addition, AIA has a 24.99% shareholding in China Post Life Insurance.