Wuxi Hospitals Fabricating Imaging Results

Police in Wuxi, Jiangsu province, have launched an investigation into a hospital suspected of falsifying medical records to claim insurance payments. The National Healthcare Security Administration dispatched an unannounced inspection group to Wuxi Hongqiao Hospital following news reports that it had been fabricating imaging test results for nonexistent patients to dupe the public insurance fund.

The administration has also guided healthcare security authorities in Jiangsu to send 20 groups to carry out comprehensive inspections of over 100 insurance-designated medical institutions in Wuxi. Police have begun investigating the case, and related personnel from the hospital have been placed under control, it said.

Jiangsu's provincial Healthcare Security Administration said in a separate circular that the medical insurance service agreement with the hospital had been terminated.

Wuxi Hongqiao Hospital - is a privately owned hospital in the second tier of China's three-tier hospital system. It has 160 hospital beds and more than 500 staff members.

A radiologist at the hospital found a number of medical records that contained radiological diagnoses but lacked key information such as imaging test bar codes and radiographic images. Most were written by a doctor in the hospital's physical examination department who was not involved in any radiological work.

The radiologist took pictures of 99 medical records created from around July 2022 to April 2023 that belonged to patients age 60 to 80.

In March, the radiologist made a report to hospital managers and found more irregularities in the following months. They included identical-looking CT scan images from several patients and two magnetic resonance imaging examinations that were carried out only one minute apart, while one session normally takes at least 10 minutes.

432 insurance-designated hospitals in 30 provincial-level regions, was inspected and the number of hospitals inspected this year is expected to exceed the total over the past five years. 

The administration has also deployed big data tools to improve work efficiency and told medical institutions to examine themselves. It has also set up a reward mechanism for whistleblowers, with a total of 3.68 million yuan ($576,000) in rewards issued for 2,422 tip-offs since 2022.

WERO Challenges Visa & Mastercard Network

The rapid evolution of fintechs over the past decade has disrupted traditional payment methods, paving the way for innovative solutions tailored to consumer needs. At the heart of recent developments lies Wero, a new instant payment solution that promises to mark a turning point in the way commercial transactions are conducted, with the aim of competing with the existing giants like the GAFA in the wallet market.

What is Wero?
Wero is the result of the European Payments Initiative (EPI), a collaboration between certain European banks and payment service providers aiming to create a unified instant payment solution with pan-European ambitions.

The EPI, launched by a consortium of 16 banks and financial services companies, aims to develop a digital wallet solution called Wero. This initiative stems from the desire to strengthen European sovereignty in the field of digital payments, in response to the dominance of non-European tech giants.

The EPI and Wero aim to eventually cover the entire Europe, offering a full range of payment functionalities, including instant transfers, online transactions, and loyalty programs.
Wero: Founding Banks and Acquisitions

The founding banks of the EPI include big names such as Groupe BPCE, BNP Paribas, La Banque Postale, Société Générale in France, Deutsche Bank and DSGV in Germany, ING in the Netherlands, and KBC in Belgium. These financial institutions have joined forces to invest in the development of this pan-European payment solution, with the goal of offering an alternative to card or check payments, especially in France.

To accelerate its development and enrich its offering, the EPI has acquired several existing payment systems, including the Dutch Currence iDEAL, the Luxembourgish platform Payconiq International, and the French mobile payment solution Paylib.

These acquisitions enable the EPI to benefit from technical expertise and an established user base, facilitating the transition to the new Wero solution.

Wero: Positioning?
Wero positions itself as an innovative and secure solution, offering instant payments and a range of value-added services such as digital identification (e-ID) and integration of merchant loyalty programs.

The EPI plans to launch Wero by mid-2024 in Belgium, France, and Germany, before expanding to the Netherlands and other European countries.

The ambition of this solution is to gradually adapt to all usual payment scenarios:

- starting with peer-to-peer money transfers (P2P)
- then from consumers to professionals (P2Pro),
- followed by transactions made online,
= and ending with in-store payments.

The Wero initiative of the EPI aims to represent a major advancement in the unification and modernization of digital payments in Europe.

By leveraging the combined strengths of certain European banks and integrating existing payment solutions, Wero aims to offer a competitive alternative to international payment systems (especially VISA and Mastercard networks), while supporting European financial sovereignty and innovation.

Where Are Instant Payments in Europe?
Wero benefits from a fairly favorable regulatory environment. Indeed, recent developments in instant transfers in Europe, and more specifically in France, mark a significant turning point, promising to transform how consumers and businesses manage their daily transactions.

At the end of February 2024, the Council of the European Union made a major decision aimed at making instant transfers more accessible and economical across Europe.

→ This initiative aims to harmonize the fees associated with instant transfers, making them free or cheaper, depending on existing bank fees.

→ This measure requires banks to offer transfers in less than 10 seconds, available 24/7, in all eurozone countries, without fees exceeding those of traditional transfers.

→ The implementation of this regulation is scheduled for autumn 2025 for countries already using the euro. Countries that have not adopted the single currency will have additional time, until 2027 or 2028, for payments made from an account denominated in their own currency.

This development represents a significant advancement in European financial integration, facilitating cross-border transactions and strengthening the efficiency of the single market.

→ For consumers, this development means a significant reduction in costs and transaction times.Instant transfers will allow money to be transferred in ten seconds at any time, including outside business hours, not only within the same country but also to another EU member state.In France, where transfers are often free, this measure should benefit the majority of customers, making instant transfers widely accessible at no extra cost.

→ For businesses, the impact is equally positive.The ability to make instant transactions at low cost will improve the fluidity of receipts and payments, contributing to more efficient cash management and reducing late penalties.This development is also a step forward in the fight against fraud, as banks are required to verify the correspondence between the account number and the name of the beneficiary before executing the payment.
Wero: A New Payment Solution Among Others

Eco-System and Support

We see the arrival of Wero as excellent news for the market, validating the maturity and viability of instant transfers. Wero will enrich the ecosystem of account-to-account payments and Open Banking.

The support of many major banks for this initiative confirms not only the functionality of these technologies but also their increasing acceptance among traditional financial players. This clearly indicates that instant transfers are not just a possibility but are becoming a common reality in consumers’ daily transactions.

However, it should not be forgotten that Wero is a new payment solution among others, in a market that already includes many established players. Unlike SlimPay, which has specialized in recurring payments for over a decade and has recently joined the Swedish group Trustly, Wero does not aim to develop in this segment. 

Interestingly, Wero boldly positions itself to compete with mobile payment giants like Google Pay and Apple Pay. This ambition to regain a share of the market dominated by these major operators is not only bold but also beneficial for the financial sector, stimulating innovation and offering consumers more options for their payment needs.

For us, the arrival of Wero further confirms our roadmap to meet the needs of merchants in reducing transaction abandonment,optimizing user experience, and improving the lifetime value of their customers by maximizing their financial interactions and loyalty.

Vietnam Reliance On Foreign Reinsurer

Local firms reinsured $246m domestic reinsurance premiums, $902m were transferred to foreigners. Non-life insurance and reinsurance companies in Vietnam are increasingly relying on foreign reinsurers to handle large portions of their premiums, according to industry experts as reported by Viet Nam News agency.

Data from the Ministry of Finance’s Insurance Supervision Agency shows that Vietnam's total insurance premium revenue for the first half of 2024 was estimated at over $4.47b (VNĐ109t), marking a 3.8% decrease compared to the same period last year.

In 2023, the non-life insurance market generated more than $2.91b (VNĐ71t) in revenue, reflecting a modest growth of about 3% year-on-year. Of this, around 40% of the premiums were transferred to reinsurance, with health and motor vehicle insurance contributing the remaining 60%.

Local companies were able to manage these policies through reserves. Local firms reinsured only $246m (VNĐ6t) of domestic reinsurance premiums last year, they had to transfer $902m (VNĐ22t) to foreign reinsurers to ensure adequate coverage.

Domestic insurers can handle policies like health and motor vehicle insurance, which have relatively small insurance values, ranging from several hundred million to a few billion Vietnamese đồng. However, large-scale commercial projects, such as those involving property, engineering, and national infrastructure projects, require higher coverage amounts, necessitating reinsurance from foreign firms.

This trend is not unique to Vietnam but is common in many developed countries.As Vietnam’s GDP continues to grow, transferring $902m (VNĐ22t) in domestic reinsurance premiums to foreign insurers is considered reasonable to ensure proper risk sharing.

90% EPF Members Need More Saving

More than 90% of EPF members under 30 need more basic savings for retirement. The State of Households 2024 (SoH 2024) report released Thursday (Sept 26) said that only those in the 10th decile (D10) in the below 30-year age group have the required amount needed for basic retirement.

According to EPF’s estimation, an individual needs to have a minimum of RM35,000 by age 30 to achieve basic retirement savings of RM240,000 by age 55. Using this metric, the data shows that over 90% of members under 30 do not have enough basic savings of RM240,000 by retirement age.

This highlights the structural issue of low starting salaries among those beginning to enter the job market as they cannot achieve the basic EPF contribution for retirement. The report added that similar trends persist for those in the 30–54-year-old age group, as only contributors from the D10 group have the required basic savings of RM240,000 by the age of 55.

However, within this age group, there may have been withdrawals made from their Account 2, which allowed for limited withdrawal purposes such as further education, first home and others.

Blame It On Covid - The report added that the pandemic also caused a decline in EPF savings from 2019 to 2022, particularly for those in the 30-54 age group with various relief programmes such as i-Lestari, i-Sinar, i-Citra and the 2022 Pengeluaran Khas introduced in 2020 to 2022 that allowed for the partial withdrawal of EPF savings.

The issue of low savings, attributed to the structural issue surrounding stagnant wages, remains a key concern for policymakers. 

KRI urged that the target of RM250,000 savings be re-examined as it may be insufficient, considering Malaysia’s increasing life expectancy. It also assumes that Malaysians only use RM1,000 per month for 20 years.

Kmart Buckling In USA

Kmart is closing its last big-box store in the contiguous US - capping the retreat of what was once America's dominant discount retailer. Kmart will shutter its location at Bridgehampton Commons mall in Bridgehampton, New York, on October 20. The location is the retailer's only remaining full-size store in the U.S. Kimco Realty, the real estate investment trust that owns Bridgehampton Commons, confirmed that Kmart is leaving the shopping center.

The department store chain will continue to operate a reduced-size location in Miami, Florida. The retailer also operates in Guam and the U.S. Virgin Islands.

Kmart opened its first store in Garden City, Michigan, in 1962. And two decades ago, the company still operated 1,400 stores across the U.S., although its sales were sagging amid rising competition from industry players such as Costco and Walmart, along with the advent of e-commerce.

An $11 billion merger in 2005 with another fading retail brand, Sears, led by hedge fund manager Eddie Lampert failed to stanch the bleeding.

A range of retailers, including Bed, Bath & Beyond, Rite Aid, CVS Health and Foot Locker, shut a total of 4,600 stores in 2023, up 80% from the previous year.

NIKE Don't Do It

Nike Inc. ousted beleaguered Chief Executive Officer John Donahoe, bringing longtime executive Elliott Hill out of retirement in a bid to return the struggling athletic brand to its glory days. Donahoe, a former eBay Inc. chief and Bain & Co. consultant who took over in 2020, has largely been the face of the downfall.

Hill, 60, originally joined Nike in 1988 and served as president of consumer and marketplace before he retired in 2020. He will take over on Oct. 14. Donahoe, 64, will retire and remain an adviser through January.

Downhill For Nike - Nike shares jumped more than 7% in extended New York trading. The stock has tumbled 25% this year as the sneaker giant struggles with falling sales and customer defections to upstart athletic brands such as On and Hoka, as well as to more established rivals like Adidas. 

Investors will be looking for the new regime to speed up product development and release more of the groundbreaking sneaker technology that once defined the brand. The decision to bring back a longtime executive, rather than tap another outsider less-steeped in Nike’s culture of innovation, points to the company’s desperation in reversing a sales slump that has hurt shares, employee morale, and the brand’s global cachet.

Cost-Cutting - Donahoe came to Nike as only the second outsider to lead the company in its half-century corporate history. Parker, who was CEO for 14 years, helped recruit him as his successor with the hope that the former consultant could help infuse the brand with better technology and a more modern digital strategy.

Donahoe arrived at the Beaverton, Oregon, headquarters knowing very little about sneakers and streetwear. But he did know about cost-cutting.

His plan announced last year for $2 billion in cost reductions, along with layoffs across 2% of Nike’s workforce, dented morale and left employees questioning if Donahoe was the right person to meet the moment. He has been on the hot seat since Nike slashed its revenue forecast in December and warned in June that sales for the new fiscal year would be below expectations.

Demand was waning for the brand’s lifestyle sneakers as fewer people were shelling out for Nike Dunks, Air Force 1s and Air Jordan 1s. As Nike withheld products to prioritize its own stores, website and apps, relationships with retail partners also suffered.

The phased job cuts began in February, affecting corporate staff in Oregon and at other offices around the world. The company even fired people from its sneaker archive department, or DNA, as it’s referred to internally.

Calls From Wall Street - for a change in management at Nike grew louder after the sales warning in June, which led to the stock’s worst day since the company went public. Shares fell 20%, wiping out more than $28 billion in market value.

At the time, Nike co-founder Phil Knight released a statement backing his CEO: “I am optimistic in Nike’s future and John Donahoe has my unwavering confidence and full support,” he said.

Since then, Donahoe called on help from retired Nike executives. The company rehired Tom Peddie as vice president of marketplace partners to help mend the frayed retail relationships. It also reshuffled senior staff by moving longtime executive Thomas Clarke, the head of innovation, to an advisory role.

The company tried to change the narrative with extra marketing during the Paris Olympics, but sales didn’t bounce back. This month, Nike skipped its annual “Just Do It Day” celebration at its headquarters — an employee event that in the past has boasted guests such as Drake, Travis Scott and Serena Williams.

Korea Life Cannibalizing Non-Life Insurance

Life insurance companies are progressively rolling out products aimed at covering medical expenses related to cancer, diseases, and other health threats amid a rapidly changing demographic landscape, according to industry officials. Traditionally, these products are marketed by non-life insurers
, allowing policyholders to derive lifelong benefits for maintaining a healthier lifestyle.

In contrast, life insurers traditionally offer products where the benefits accrue to designated beneficiaries upon the policyholder's death, in exchange for premiums paid during their lifetime.

New Sales Strategy - Under the circumstances, the new sales strategy of life insurance companies is perceived as an attempt to achieve a breakthrough in business amid challenging sales conditions caused by declining birth rates and an aging population.

These changes include lower birth rates, more single-person households and a fast aging society, which all suggest a decline in the number of customers in the long term and diminishing business potential.

The country’s overall fertility rate dropped to 0.72 in 2023 from 0.78 the previous year. The number of single-person households in Korea surpassed 10 million for the first time in March.

By 2025, the country is widely expected to become a super-aged society, in which the proportion of those aged 65 and older will account for 20 percent of the total population.

Three major market players — Samsung Life Insurance, Hanwha Life Insurance and Kyobo Life Insurance — accordingly introduced a total of seven products in the first quarter this year that cover the medical expenses of insured clients.

The number of such products more than doubled from the previous year and also outnumbered ones introduced by the country’s five major non-life insurers during the same period.

The five are Samsung Fire & Marine Insurance, DB Insurance, Hyundai Marine & Fire Insurance, KB Insurance and Meritz Fire & Marine Insurance. The life insurers currently account for 28.7 percent of the non-life insurance market, and the remaining 71.3 percent is occupied by the non-life insurers. But industry sources said competition between life insurers and non-life insurers will intensify in the coming years.

They noted that Samsung Life Insurance wants to hike the ratio of non-life insurance related deals to 60 percent of all new customer contracts this year, up from an average of 40 percent so far. Kyobo Life Insurance is currently promoting a campaign focused on long-term insurance plans tailored for medical treatments.