Sunday, March 29, 2020

Adaptability - Key Leadership Requirement

The Five Key Capabilities of Effective Leadership | INSEAD KnowledgeLeaders all over the world are facing change and complexity. The outbreak of coronavirus (COVID-19) has presented us all with new challenges, new circumstances, and new uncertainties. Because change is constant and inevitable, leaders must adapt to succeed.
Successful executives - 
  • Adapt to the changing external pressures facing the organization.
  • Adjust their management style to changing situations.
  • Accept changes as positive.
  • Revise plans as necessary.
  • Consider other people’s concerns during change.
Conversely, the inability to develop or adapt was the most frequently cited reason for career derailment. That’s because inflexible leaders limit the adaptability of others. New initiatives may be halted or stifled. Resistance to change may undermine critical projects or system-wide implementation. Employee enthusiasm, cooperation, morale, and creativity are jeopardized, making it all the more difficult to run the business or organization.

Adaptability is about having ready access to a range of behaviors that enable leaders to shift and experiment as things change. “To survive change in your organization or industry or profession, you must first lead yourself through the process of transition. This includes finding ways to help yourself feel more grounded, understanding the impact that change is having on you, and understanding the impact of your behavior on others.

Adaptable people show 3 kinds of flexibility:
1. Cognitive flexibility — the ability to use different thinking strategies and mental frameworks. Leaders who have cognitive flexibility are able to incorporate different thinking strategies and mental frameworks into their planning, decision-making, and management of day-to-day work. They can simultaneously hold multiple scenarios in mind and can see when to shift and inject a change. Cognitive flexibility indicates nimble, divergent thinking, an interest in developing new approaches, the ability to see and leverage new connections, and the propensity to work well across the organization. These leaders readily learn from experience and recognize when old approaches don’t work.
2. Emotional flexibility — the ability to vary one’s approach to dealing with emotions and those of others. Leaders with emotional flexibility vary their approach to dealing with their own and others’ emotions — an area that many leaders often fail to consider. An emotionally flexible leader is comfortable with the process of transition, including grieving, complaining, and resistance. Adapting to change requires give and take between the leader and those experiencing the change. A leader without emotional flexibility is dismissive of others’ concerns and emotions and shuts down discussion. At the same time, an emotionally adaptive leader moves the change or agenda forward.
3. Dispositional flexibility — the ability to remain optimistic and, at the same time, realistic. Leaders who display dispositional flexibility (or personality-related flexibility) operate from a place of optimism grounded in realism and openness. They will acknowledge a bad situation but simultaneously visualize a better future. They are neither blindly positive nor pessimistic and defeatist. Ambiguity is well-tolerated. Dispositionally flexible leaders see change as an opportunity rather than as a threat or danger.
By learning and practicing behaviors that boost your cognitive, emotional, and dispositional flexibility, you can become more adaptable and, in turn, help others to adapt. As a leader, you not only have to respond to change, but you also have to steer change. Use these 5 tips as you adapt to change and guide your team through change:
  • Be curious. Ask lots of questions. Wonder, explore, and consider before you judge and decide.
  • Don’t get too attached to a single plan or strategy. Have Plan B (and C) at the ready.
  • Create support systems. Don’t go it alone. Look to mentors, friends, coaches, trusted peers, professional colleagues, family members, and others to serve as your support system in times of change. Encourage employees to do the same.
  • Understand your own reaction to change. You have to be clear about your own emotions and thoughts about changes, so you can be straightforward with others.
  • Immerse yourself in new environments and situations. Do this when you are confronted by change — but get practice by joining activities, meeting new people, and trying new things on a regular basis.

Saturday, March 28, 2020

Covid-19 Subsidize Test

Breaking News: MIT Develops Cheaper And Faster COVID-19 Diagnostic ...Life insurance policyholders and family takaful participants will have the option to defer their regular payments for three months without affecting their policy coverage. This flexibility may be provided by life insurers and family takaful operators through a no-lapse guarantee, an extension of grace period or any other means that maintain the policy/certificate intact during the deferment period.
This option will be available from April 1 to Dec 31, 2020. Additionally, life insurers and family takaful operators will also provide the following assistance to the affected policyholders and takaful participants until Dec 31, 2020.
  • Extend the period during which a policyholder and takaful participant can reinstate a policy/certificate that has lapsed;
  • Provide options to enable policyholders and takaful participants to continue to meet their premium/contribution payments and maintain their policies/certificates. This may include changes in the sum assured/covered, adjustments to the premium/contribution structure and conversion into a paid up policy;
  • Waive fees and charges imposed for changes made to policies/certificates;
  • Waive any penalties/consequences for late payments of premiums/contributions, particularly where policyholders/takaful participants are unable to access electronic payment channels during the Movement Control Order.

Wednesday, March 25, 2020

Buying Life Insurance During Covid19

Image result for covid19In a global health crisis, life insurance can be confusing. Will it still cover you if anything happens? And, is it too late to sign up? 

Online life insurance distribution has seen a 50% increase in applications since February.
There's no certainty that the increase is tied to the virus, but it points to people thinking about life insurance who would have normally put it off. 


1. If you already have life insurance, there's no need to worry
Anyone who already has life insurance doesn't need to worry about their policy — it's already in place, and no virus could change that. If anything should happen to you, your policy will cover it. Nothing will change, and so there's really no need to worry. Even if you're in an affected area, your policy and monthly premiums aren't likely to change — the rate you have is locked in for the entire term of your policy. 

2. Potential price fluctuation makes now a good time to apply
Insurance prices are constantly fluctuating, due to many factors. While life insurance would certainly be impacted by an influx of fatalities, its prices can also vary based on the market and interest rates, which play a big role in how life insurance companies make money through investing. 

Record-low interest rates could pose a threat to the life insurance industry, affecting its investments and ultimately its profitability. But, It is still too early to say just how much it could jolt life insurance prices for consumers, if at all.

Premius are expected to hold steady in the short term, without much change. If you're a healthy young person and you're applying for life insurance, your rates shouldn't be changed due to this Coronavirus. The underwriting process is the same if you apply today as if you were to have applied two months ago. In the long term, anything could happen. But, anyone concerned about a potential future price increase could benefit from applying now.

3. If you're applying, don't lie
Lying on your life insurance application could cost you, and it's not worth risking your policy's validity to save a few dollars. Lies about your health or medical conditions will likely be caught, as life insurers can check medical records, and can go as far as to cancel your coverage.

Many online life insurers also request travel history. It is not tied to the virus. This question predates any of the Coronavirus concerns. The answers to this question are more about the amount of risk posed by traveling, and that certain destinations that are higher risk than others. Lying on the travel history portion, or on any other portion, of your application could constitute as fraud. You're better off telling the truth.

4. If you're applying now, don't forget to shop aroundAs always with life insurance, you'll want to shop around and make sure you're getting the best possible deal. Each insurance company considers your information differently, and companies price your policy depending on your individual risk profile. To avoid paying more than you should each month for your policy, get quotes from several different insurance companies or online life insurance agents. Compare them to find the most coverage for the least money, and you'll find the one that's the best deal for you.

India Insurer Extends Premium Payment Period

Image result for covid19As COVID-19 (popularly known as Coronavirus) takes most part of the world by storm, the central and state governments in India are taking measures such as suspending flights, locking down states and imposing curfews to combat the spread of the virus. In order to ensure policyholders are not hit by these measures, the Insurance Regulatory and Development Authority of India (Irdai) has suggested alternate methods for insurers to continue servicing their customers. The regulator has asked life insurance companies to allow a one month extension on premiums due in the month of March 2020.

This will give some relief to policyholders in these trying times where several states are locked down and could disturb operations of insurers, intermediaries, and distributors. Due to Covid-19, for customers who cannot pay online or are already panicked and stressed, this move will bring some respite.

Health insurers have been asked to accept a delay in policy renewals up to 30 days without deeming the same as a break in policy. Companies have been asked to contact policyholders about this well in advance to ensure there is no discontinuance in coverage.

All general, health and life insurance companies have been asked to display information on functioning of their offices and alternate arrangements made by the insurers for premium payments, renewals, claim settlement, grievance submission among others on their websites. In cases where offices are not functioning (fully or partially) the policyholders shall be notified by SMSes, e-mails,and press release in addition to display boards/pamphlets in the brand offices. Call centres, if, possible and necessary, have been asked to function to help policyholders during these trying times.

Life Insurers - Additional Assistance - COVID19

Image result for covid19The Life Insurance Association of Malaysia (LIAM) and its member companies are taking proactive steps in providing additional relief measures for policyholders affected by the economic slowdown due to the Covid-19 pandemic.
The following additional benefits are a few examples of relief measures taken by insurers:
i. RM5,000 Cash Relief for customers who are diagnosed with Covid-19
ii. Cash benefits/allowance for hospitalisation (for example up to RM250 per day up to 30 days of hospitalisation)
iii. Special lump-sum death benefits (ranging from RM5,000-RM20,000 upon death of the insured)
iv. Four insurance companies pledge RM1 million each as part of their financial assistance/support programme for customers affected by Covid-19
Policyholders are advised to check with their respective insurance companies for the additional benefits offered by their insurance company for the Covid-19 outbreak and the terms and conditions of their health insurance policy,” said LIAM.
Life insurers have also introduced various flexibility in premium payments. The flexibility provided vary from company to company, affected policyholders are advised to check with their respective life insurance companies for more details.

Tuesday, March 17, 2020

Life Insurance Malaysia Update 2019

Image result for life insurance
The life insurance industry registered a 14.19 per cent increase in new business total premiums to RM11.8 billion last year as compared with RM10.3 billion in 2018, driven by an increase in awareness among consumers on the importance of life insurance protection.
Traditional business, investment-linked and group business also recorded strong growth at 30.12 per cent, 11.05 per cent and 10.79 per cent, respectively. New policies issued in 2019 recorded an increase of 6.22 per cent to 1,315,233 policies from 1,238,249 policies in 2018, with investment-linked policies continuing to be a popular product in 2019.

New business sum assured increased by 6.91 per cent to RM483.4 billion in 2019 compared with RM452.1 billion in 2018. The average sum assured for the individual policy category (excluding group Insurance) reached RM130,000 per policyholder. It is estimated that a family of five would need at least RM550,000 to meet their living expenses over the next five years, in the event of a loss of the breadwinner.
On the outlook for 2020, Liam expects the industry to achieve high single-digit growth given the uncertainties faced by the global and local economies partly due to the Covid-19 outbreak, counter-balanced by the strong resilience of the life insurance industry and the low insurance penetration rate in Malaysia.

Sunday, March 15, 2020

BPJS - Unable To Increase Premium

Image result for health care indonesiaIndonesia's Supreme Court has annulled a presidential regulation issued last year that had doubled the tiered premiums on the national health insurance.

The government issued a decree to raise premiums managed by insurer BPJS Kesehatan by at least 65% in October, after the state-owned agency estimated a $2.3bn cash shortfall last year and warned that the gap could widen by 140% by 2024. The deficit has caused delays in payment to various medical service providers.

State-owned BPJS Kesehatan, which provides universal health cover, has been in financial trouble for several years, citing more payouts than premiums collected.

The Supreme Court argued that according to the 2004 Social Security Law and 2011 Social Security Agency Law, the national health insurance premium has to be at a level that matches Indonesia's economic development and also takes into account the needs of the people.

Doubling the premium during a time of stable inflation and slow economic growth would be going against the needs of the people, the judges argued.

The ruling would have implications on BPJS Kesehatan's finances. The government will review on measures to make BPJS Kesehatan more sustainable. BPJS gives healthcare services for the wider public, but financially it's at a loss."

A group of patients suffering from kidney failure petitioned the court to review the decree that increased premiums.

It's not clear if BPJS Kesehatan will have to return funds to policyholders or the state following the ruling. The government pays for the coverage of some 96 million people on low income.