Hanwha Initiates Blockchain

Hanwha Life Insurance is betting on the blockchain as a core pillar of its next growth phase as it seeks to evolve from a traditional insurer into a global financial group. Rather than treating blockchains as a speculative technology play, the insurer sees them as financial infrastructure capable of reshaping cost structures across the industry.

Hanwha Life envisions a future of finance in which blockchain technology securely safeguards customers’ assets and enables transactions with greater convenience. Ultimately, future finance means lowering costs across the financial system and returning those benefits to customers.

Indonesia has emerged as a key market for translating that vision into practice. South-East Asia’s largest digital economy had a financial inclusion rate of about 75% in 2024, according to official data, leaving roughly a quarter of its adult population unbanked or underbanked.

Hanwha Life this year acquired control of local lender Nobu Bank, becoming the first Korean insurer to gain control of a foreign bank. Through its subsidiary Hanwha General Insurance, the group also controls Lippo General Insurance, expanding its footprint across Indonesia’s financial sector.

The company aims to combine insurance and banking services in Indonesia to reach new customer segments while lowering barriers to financial access. With a population of about 280 million and a government target to lift financial inclusion to 98% by 2045, the country offers both scale and policy alignment.

Sony Life Review 2.5 Million Policies

Sony Life Insurance Co. decided to review about 2.5 million policies sold by its “life planners” following allegations that former sales employees were engaged in fraudulent practices. Around 20 to 30 customers of Sony Life have claimed they were victims of fraud or similar misconduct by company employees.

Sony Life will also ask customers who signed contracts through its sales employees or exclusive agents if they noticed any suspicious activity during phone calls, letters or on dedicated customer webpages.

Sony Life is the first insurer to open such a large-scale investigation since Prudential Life Insurance Co.’s probe in August 2024.

The Prudential Life investigation revealed that 107 employees and former employees were involved in unauthorized financial transactions with 503 customers, and improperly obtained a total of about 3.1 billion yen ($20 million).

At Sony Life, the number of customers reporting losses or expressing concerns about potential misconduct has been increasing. In January, the company disclosed a case in which a solicitor who had been tranferred to an exclusive agent for Sony Life took money from customers under the pretense of investment and diverted it for personal use.

In March, the company revealed that a former sales employee had borrowed about 2.2 billion yen from 103 customers, of which about 1.2 billion yen remains unpaid.

Sony Life initially did not make this case public, treating it as “personal borrowing” by the former employee.

The company was established in 1979 as Sony Prudential Life Insurance Co. It later split from Prudential Life and became a separate company. Both Sony Life and Prudential Life employ sales staff known as “life planners” to sell insurance products.

And both companies have traditionally adopted a “full-commission” compensation system in which pay is directly linked to sales performance. Prudential Life has been reviewing its compensation structure on grounds that the link between pay and insurance sales performance was a contributing factor to the misconduct.

South Korea Crackdown On Insurance Fraud

The South Korean National Police Agency has officially commenced a sweeping nine-month crackdown on insurance fraud to curb rising financial losses. Specialized units are being deployed across the country to target the growing issue of financial drain on the sector.

Running from February 2 through October 31, 2026, the special enforcement campaign represents a significant escalation in the government's battle against organized insurance crime. The initiative comes as the industry grapples with deteriorating loss ratios and a sophisticated wave of fraudulent activities. These illicit activities are inflating premiums for honest policyholders and undermining the stability of the market.

Inflated Claims - Authorities are specifically targeting two primary sources of leakage: organized car accident schemes and the operation of illegal medical institutions. These illegal facilities are known locally as "ghost hospitals” - they are often established by non-medical personnel who hire doctors on paper to obtain licenses, violating medical laws. These establishments have become hotbeds for inflated claims and systematic financial abuse.

Systematic enforcement against "ghost hospitals" - To ensure the effectiveness of the campaign, the police have designated anti-corruption and economic crime units as primary investigative forces. Mobile criminal investigation teams will also be utilized to track down organized rings that operate across regional jurisdictions.

The focus on "ghost hospitals" addresses a critical vulnerability in the healthcare insurance system. These facilities often collude with brokers and patients to falsify medical records and inflate treatments. This practice has evolved from simple opportunism into organized crime involving hundreds of participants.

In recent years, industry insiders have been found leveraging their specialized knowledge to exploit loopholes in the claims process. This trend has necessitated this high-level police intervention to protect the integrity of the system.

The National Police Agency stated that insurance fraud is not a victimless crime, as it undermines the social safety net and directly leads to higher premiums for the general public.

Financial pressure on the sector - This enforcement drive arrives at a critical time for the Korean insurance market. The sector is currently navigating significant headwinds, as South Korea's general insurance sector surges with fresh momentum but faces underlying profitability challenges.

The leakage from fraud exacerbates these financial pressures, making strict enforcement a necessity for market stability. Recent data indicates that the complexity of fraud has increased, with criminals using digital tools to recruit accomplices. The crackdown also includes provisions to seize criminal proceeds before indictment to prevent fraudsters from hiding assets.

Managing Health Inflation - Singapore

Medical cost inflation in Singapore projected to hit a record high of 16.9 per cent in 2026, the Life Insurance Association Singapore (LIA) called for collective action to tackle issues such as overconsumption of healthcare services, and to contain rising treatment costs. This means collaboration is needed between insurers, healthcare professionals and providers, consumers and the authorities.

For a start, all seven Integrated Shield Plan (IP) insurers have to launch new riders by April 1 to meet the Ministry of Health new requirements. The new riders will require consumers to pay more out of pocket before insurance kicks in and play a bigger role in sharing the responsibility of tamping down rising costs. Based on responses from four IP insurers earlier, the new riders will be priced, on average, at least 30 per cent lower than existing riders. 

To address rising insurance premiums and private healthcare costs by instilling discipline in healthcare consumption, particularly for minor procedures, MOH has mandated that new IP riders sold from April 1 can no longer cover the minimum IP deductibles set by the ministry.

This means that those with the new riders have to pay at least $1,500 before insurance coverage kicks in. In addition, the co-payment cap will be doubled from the current $3,000 to $6,000, requiring policyholders to pay a larger portion of their bills.

Medical costs are expected to continue rising in 2026 globally, with the Asia-Pacific region reporting the highest increase at 14 per cent. Singapore is expected to overtake Indonesia to become the Asia-Pacific market with the highest medical inflation at 16.9 per cent.

Medical inflation in Singapore had been under 10 per cent until 2024, when it rose to 12.3 per cent, and further grew to 15.5 per cent in 2025. Factors leading to higher medical inflation here include an ageing population; adoption of costly new technologies, treatments and medication; and high operating expenses driven by increasing real estate prices and salaries due to a shortage of healthcare staff.

Besides collaborating with stakeholders and enhancing public education, especially in the areas of wealth and health protection, LIA will launch a series of financial literacy workshops for students at institutes of higher learning, in partnership with the Singapore College of Insurance.

Indonesia Life Insurance Update 2025

In 2025, Indonesia Life Insurance Industry registered a total industry revenue of $13.6b (Rp238.7t), a 9.3% increase year-on-year, driven by strong investment returns and an increase in total insured individuals.

The Indonesian Life Insurance Association (AAJI) data further showed that results from 57 life insurance companies saw their overall premium income experience a minor decline of 1.8%. This was a shift toward regular premium payments.

New business premiums paid on a regular basis grew by 7.8% YoY. Additionally, the total number of insured people rose by 8.6% YoY, bringing the total to 168.03 million individuals.

The industry paid out a total of $8.4b (Rp146.7t) in claims and benefits to approximately 9.59 million beneficiaries throughout the year.

Total claims actually fell by 7.8% YoY, a drop largely attributed to a 19% reduction in policy surrenders, indicating that more policyholders are maintaining their long-term coverage.

In contrast, health insurance claims rose by 9.1% YoY to $1.5b (Rp26.7t) across both individual and group plans. AAJI plans to focus heavily on health insurance management in 2026 under new regulatory guidelines to control these costs.

Total industry investments grew to $33.7b (Rp590.5t) in 2025, up from $30.9b (Rp541.6t) the year before.

The largest portion of this portfolio was allocated to government securities, which accounted for $14.2b (Rp248.3t), or roughly 42% of total investments.

The remaining funds were distributed across shares at $7.3b (Rp128.7t), mutual funds at $4.2b (Rp74.1t), corporate sukuk at $3.0b (Rp53.5t), and deposits at $1.8b (Rp32.0t).

Looking ahead, the association is preparing for the upcoming regulatory changes deadlines at the end of 2026.

These include stricter capital requirements and the mandatory spin-off of sharia business units.

The association is also rolling out new training and certification platforms to standardize marketing and agent qualifications across the sector.

Prudential Acquires Bharti Life

Prudential has agreed to acquire a 75% stake in Bharti Life Insurance Company, from ​Bharti Life Ventures and 360 ONE Asset Management as part of a strategic repositioning of its India operations.

Prudential said it will acquire a controlling stake in Bharti Life Insurance for ​initial cash consideration of 35 billion rupees ($364.74 million), ​payable on completion. An additional 7 billion rupees is ⁠potentially payable on the fulfillment of certain conditions.

Upon completion ​of the deal, Prudential said its Indian operations will consist of majority-owned Bharti Life Insurance and Prudential HCL Health Insurance, and minority shareholdings ​in two listed entities, namely 35% of ICICI Prudential ​Asset Management Company and 22% in ICICI Prudential Life Insurance Company.

Prudential is ‌required ⁠to reduce its shareholding in ICICIPru Life to under 10% to secure regulatory approval for the deal adding that it is engaging with regulatory authorities on ​this process.

The ​deal is a ⁠strategic move to secure majority ownership of a life insurance business in India, a ​highly attractive market for Prudential, and enables the ​insurer ⁠to work closely with Bharti Enterprises' other businesses and related entities. Bharti Life will also look into securing ⁠strategic ​distribution agreements with Bharti Airtel and ​360 ONE as part of the deal.

Reset - Malaysia Medical Insurance

The Malaysian insurance and takaful industry is expected to address any structural gaps during the pilot phase of the Malaysia Health Insurance and Takaful Initiative (MHIT), which is scheduled for rollout in the second half of 2026.

Under RESET, the base MHIT plan will begin in 2027. The insurance plan will have co-payment features, through which it will regulate the behavior of private hospitals: policyholders will pay lower co-payments when they seek treatment at healthcare facilities that charge moderate fees with fee transparency, while those charging ‘premium’ fees will result in higher co-payments.

Previously, in January 2026, BNM plans to strengthen regulatory requirements for all MHIT products following the introduction of a standardized base MHIT plan, aimed at improving consumer protection and ensuring long-term premium sustainability.

MHIT, which will be offered on a voluntary basis, is slated for pilot rollout in the second half of this year, while full implementation is targeted for early 2027.

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.