Healthcare benefits paid out by health maintenance organizations (HMOs) to its members amounted to PHP30.33bn ($536m) in the first half of 2024, which is a 15.65% increase from healthcare benefits paid out during the corresponding period last year, says the Insurance Commission (IC). Still, even with the big increase in benefit payouts, the HMO industry returned to profitability, registering a total net income of PHP636.6m in the first half of this year, compared to the total net loss of PHP1.19bn in the corresponding period last year. In the first quarter of 2024, HMOS reported a net profit of PHP6.8m, an improvement over the net loss of PHP319.0m in the corresponding quarter in 2023. For the full years of 2023 and 2022, HMOS posted net losses of PHP4,269.4m and PHP1,433.4m respectively. The return to profitability of the HMO industry amidst the big increase in benefit payouts was brought about by higher total revenues by the industry, which amounted to PHP38.75bn in 1H2024. The bulk of this total revenue consists of membership fees collected by HMOs, which amounted to PhP36.56bn. Source: asiainsurancereview.com

Despite macroeconomic and geopolitical uncertainty, a hawkish inflationary environment and elevated interest rates, Southeast Asia's (SEA) InsurTech sector saw a surge in deal value in 2023 -- a development not seen since 2020. In 2023, SEA’s InsurTech sector witnessed a total value of $2,351m from 27 deals, compared with $538m from 39 deals in 2022, and just below the high of $2,363m from 32 deals in 2020, the majority of which was driven by Singlife’s merger with Aviva Singapore (at over 2,000m). The report, titled “InsurTech landscape in ASEAN – key trends and opportunities shaping the InsurTech sector”, by professional services organization EY, and financial services company Singlife, highlights a general flight-to-safety approach among investors as they became increasingly selective, putting greater emphasis on and deploying capital to companies that are profitable and have innovative technologies or regional presence. Investors are also favouring established InsurTech firms with a proven track record, as seen in the two major deals in 2023: Singlife’s $1,973m acquisition by Sumitomo Life at a valuation of $3.5bn and bolttech’s $246m Series B round. In comparison, riskier early-stage companies only secured two publicly announced Series A deals raising $2.3m in 2023. While funding for InsurTech firms headquartered in Singapore dominated deal count and funding (accounting for 85% of deal value), given the country’s conducive environment as a FinTech hub, countries such as Indonesia, Thailand, and Malaysia are gaining a bigger share of the funding pie. This came as no surprise given the favourable demographics and structural developments. Mr Rahul Vardhan, partner, Strategy and Transactions at Ernst & Young Solutions, said, “Fundraising in the InsurTech sector in the short to medium term is likely to be geared toward companies that are category leaders and have proven track record of sustainable and profitable growth. Presence across multiple jurisdictions will also be a key differentiator to allow scale in SEA’s underpenetrated insurance market. “However, regional expansion is a capital-intensive endeavour that requires a strong understanding of local regulations to navigate the regulatory hurdles smoothly. This is particularly important for InsurTech firms that underwrite. InsurTech firms that execute this well will achieve a meaningful competitive advantage. Scarcity of such companies in the region is likely to drive high demand and valuations.” Diverse exit options, with IPOs emerging as a viable strategy, point to a maturing market The report also reveals that in 2023, there was an increased number of exits and expanding exit options, with IPOs emerging as a viable strategy. Fundraising activity across various stages of InsurTech firms was commonly seen and firms are now expanding their options, such as via buy-outs by corporates, secondary sale to private equity firms, as well as IPOs. In 2023, there were three M&As, two secondary transactions, and one IPO. Investors are also placing bets on SEA InsurTech companies that promise to revolutionise the industry through digital transformation. This is evident in the strategic partnerships and investments by tech unicorns and traditional financial service providers, which are leveraging InsurTech platforms to enhance their product offerings and customer experiences. Examples include Tokio Marine’s investment in bolttech to enable the provision of embedded insurance products as well as FWD Insurance’s investment in Protos Labs (part of FWD’s Startup Studio accelerator program), a cyber risk analytics company that focuses on artificial intelligence (AI)-driven solutions. These trends demonstrate the broadening of the investor base for InsurTech firms, signalling a maturing market with growing liquidity. Mr Vardhan said, “While the allure of rapid top-line growth and customer acquisition has been a driving force in the past, InsurTech firms must now balance scalability with financial prudence to attract investment. A successful expansion strategy will be one that not only aligns with regulatory frameworks but also leverages them as a catalyst for growth. Whether through organic growth, strategic partnerships, or M&As, InsurTech firms must navigate these with a keen eye on compliance, market readiness, and local consumer behaviour.” Customer-centric approach and innovation are key to future growth As customer demands evolve, InsurTech firms need to tailor their products to meet the needs of varied customer segments, such as Gen Z and SMEs, and to address changing socioeconomic trends such as the rise of the gig economy and evolving dynamics of families. Given the diverse consumer profiles, InsurTech firms can leverage innovative technology to allow digital platforms to become “points-of-experience” for a more digital-savvy audience, where value-added products and services such as insurance can be integrated through open data and e-commerce. InsurTech firms also need to consider their pre- and post-sales capabilities, such as dynamic pricing and digital claims, to enhance product value and improve customer experience. Additionally, distribution has been a key focus for InsurTech firms, with key players adopting various digital distribution models to support rapid growth. Hence, there has been an evolution in distribution models, with aggregators focusing on traditional insurance products through to advanced full-stack models, which disrupted the entire insurance process to meet changing customer needs. Mr Vardhan said, “It is critical to identify key areas of the value chain where processes can be improved. To optimise their capabilities and sharpen their customer value proposition, InsurTech firms are exploring innovations across three areas, namely in technology, such as using AI for dynamic pricing and claims management; in product, so as to serve emerging, new and untapped customer segments such as SMEs and gig workers; as well as in distribution such as through embedded insurance and white labelling.” Source: asiainsurancereview.com

PIRA supports the Asian Captive Conference 2024. The aim is to deliver an even more impactful conference this time around, while taking into account the evolving needs of the APAC region’s captive segment. This conference is ideal for Risk Managers and Insurance Managers, Captive Owners, Service Providers, Legal and Tax Advisors, Compliance Officers as well as Regulators and Government Officials. PIRA members who are eager to attend this conference can benefit from the exclusive promo code provided: ACC24_PIRA For more information, kindly visit: www.labuanibfc.com/theasiancaptiveconference2024

Insurance Council of Australia (ICA) and Planning Institute of Australia (PIA) have together called on local, state and federal governments to reduce vulnerability to natural hazards and to make progress on much needed reforms against a backdrop of growing housing challenges. Experts from government, financial services, property, and community sectors gathered in Brisbane yesterday at the 2024 National Industry Roundtable: Land Use Planning and Resilience to say “the time is now for action on land use planning reforms”. The landmark forum highlighted the critical need for industry and government to work together to protect lives and properties from intensifying flooding, bushfires, and cyclones by ensuring that low-risk areas of the country are prioritised for new development. Effective planning is crucial for risk reduction, as building in high-risk areas exposes more homeowners to extreme weather events and widens the insurance protection gap. Recommendations Releasing a joint communique to help inform future land use planning settings, the industry bodies outlined recommendations to enhance the effectiveness of land use planning in managing extreme weather risk, including: prohibiting further development in high-risk flood-prone locations; enhancing and adapting building standards, and; taking a strategic approach to implementing home buyback programs where risks are not able to be mitigated. ICA CEO, Mr. Andrew Hall, said, “ The ICA has long emphasised the importance of using a nationally consistent baseline of current and future extreme weather risk to inform where we build homes in the future, and identify which existing homes need to be relocated, retrofitted or raised to reduce community vulnerability.” Mr. Matt Collins, PIA CEO, said, “G ood land-use planning can help make our communities more resilient to natural disasters.” He added that it is critical for planners to have the tools they need, like up-to-date mapping and modelling. He said, “PIA strongly supports the need for high-quality strategic plans that clearly identify areas where we can’t manage the risks from threats like flood and fire, with clear indications of where we simply shouldn’t be building.” “We don’t just need more resilient homes – we need to plan for the surrounding landscape.” Source: asiainsurancereview.com

Singapore-headquartered regional InsurTech Igloo has announced that it has expanded its digital platform, Ignite, to the Philippines. Ignite , launched in early 2022, helps sales intermediaries sell easier, faster, and more effectively, says Igloo. The app has been launched in Vietnam and Indonesia. Last year, Ignite was   expanded from nine to 20 advanced tools to enhance usability and boost productivity for sales intermediaries. This has resulted in an over 95% satisfied-to-neutral satisfaction rate, with partners citing its “straightforward registration process”, “good coverage of insurance products” and “simple quote and application process” as features driving useability, says Igloo in a statement. Moreover, a survey by tech-powered impact measurement company 60 Decibels of 305 sales intermediaries saw close to 60% of respondents reporting that their income has increased since becoming an Ignite partner; 76% of Ignite sales intermediaries report learning useful skills; and 73% have acquired opportunities to advance in their current roles. Ignite has also introduced a new iLearn feature – where individuals are able to access training content in various formats – pdf documents, infographics, videos, quizzes – to enhance their insurance product knowledge and selling skills. Mr Raunak Mehta, co-founder and CEO of Igloo, said, “Our 73.5% satisfaction rate amongst our sales intermediaries is very encouraging for us, just two years in, and we are committed to ensuring we provide them with the right tools and training to help them succeed.” Igloo has also launched a new Ignite microsite with content to aid recruitment, providing relevant content for individuals who want to pursue full-time or part-time careers in insurance sales. Ignite is also available as a white-label solution to insurers who want to digitise their sales activities and processes. Igloo has offices in Singapore, Indonesia, Thailand, the Philippines, Vietnam and Malaysia and tech centres in China and India. It says that it has partnered with over 75 well-known brand names across the various markets and verticals, including insurance, telecommunications, e-commerce, hospitality, HealthTech, and financial services. Source: asiainsurancereview.com

The race for the trophy begins The launch of the Asia Insurance Industry Award (AIIA) nominations always marks a very exciting time of anticipation, both for us at Asia Insurance Review (AIR) as well as the industry at large. It marks the beginning of the race to see who will claim an AIIA trophy in November. It is also a significant acknowledgement and recognition of the evolution of the Asian insurance industry in many ways. This year marks the 28th year of hosting these awards. In the last 28 years, we have seen companies grow exponentially, as well as some that unfortunately have fallen. Despite the nuances and changes across almost three decades, we are so grateful to see the AIIA trophy remain the one to win. These awards remain a testament to the endurance, commitment and true spirit that the insurance industry embodies. I have been involved in the AIIA from their birth in 1997 and on both a professional and personal front, it has been a true honour to have seen how the awards have grown from strength to strength, and how they have withstood the test of time. On behalf of AIR , I am delighted to announce the launch of the 28th year of saluting excellence. Asia remains a powerhouse on the global stage, and whilst it is uncertain what trajectory the industry will take, global insurers do look seriously at Asia as a force not to be taken lightly. The Asia insurance industry plays a pivotal role in the global economy. We continue to showcase our strength and resilience despite challenges of geopolitical tensions, climate change issues, market fluctuations and the rise of new risks. The awards play a humble role in pushing these boundaries of strength and resilience and we strive to keep apace of trends and developments to remain relevant. In line with this, we have launched a new category to recognise and salute AI initiatives that will help improve processes and efficiency in an industry surging with innovation. It is indeed an honour for AIR to continue to showcase the cream of the crop of our industry and to acknowledge the hard work that goes behind impressive achievements the industry continues to make, year-on-year. We would like to take this opportunity to express our sincerest appreciation to the judging panel who work tirelessly to plough through the entries to reward the deserving. It is they who maintain the integrity and professionalism of the awards process and help carry the torch to the highest peak, under the eyes of the scrutineer KPMG. What many don’t realise is just how stringent the entire process is. The two rounds of judging demand not only a serious level of commitment, hard work and discipline on the part of the judges, but also fairness to ensure there is no conflict of interest. Utmost integrity is maintained at the highest degree at all times during the entire process. And the point scoring system and audit ensure nobody is privy to the result until the envelope is opened on the night of the gala dinner. We also thank and salute our valued sponsors who help us to drive excellence. Your support is much appreciated. We are excited to see what the nomination round brings this year. So do compete. The standard of entries improves with each passing year and your efforts will inspire and lay the road for future generations. We look forward to seeing a huge influx this year from strong contenders. Whether your nominations take the form of self-nominations or via a third party, both carry equal weight. So do send in your nominations and make sure you pay close attention to the criteria. All the best to the candidates. We look forward to seeing you at the awards gala dinner where the deserving winners will be revealed in conjunction with the 20th SIRC.

The operating performance of Malayan Insurance, one of the top three non-life insurers in the Philippines in terms of GWP and net income, is viewed as adequate, said AM Best. The company reported a five-year average return-on-equity ratio of 3.8% (2019-2023). While total operating earnings remained profitable in 2023, the company reported an underwriting loss, in part due to lower reinsurance commission income. Overall underwriting performance has exhibited moderate volatility in recent years, driven by CAT and large loss events, which negatively impacted Malayan’s core commercial lines. Nevertheless, good technical results for its motor business continue to help to partially mitigate the deterioration in underwriting results. Investment income continues to be the principal contributor to Malayan’s overall earnings, supporting its track record of positive earnings. Prospectively, AM Best expects underwriting performance to remain supported by ongoing portfolio remediation measures, as well as business growth in more profitable retail segments. Ratings affirmed AM Best has affirmed Malayan’s Financial Strength Rating of ‘B++’ (Good), the Long-Term Issuer Credit Rating of ‘bbb’ (Good), and the Philippines National Scale Rating (NSR) of ‘aa+.PH ‘(Superior). The outlook of these credit ratings is ‘Stable.’ These ratings reflect Malayan’s balance sheet strength, which AM Best assessed as strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management. In addition, the ratings factor in a neutral impact from the company’s ultimate ownership by Pan Malayan Management and Investment Corp. Balance sheet strength Malayan’s balance sheet strength assessment is underpinned by its risk-adjusted capitalisation, as measured by Best’s Capital Adequacy Ratio (BCAR), which is at the strongest level. Risk-adjusted capitalisation improved in 2023, with ongoing reinsurance claims settlement supporting a reduction in the company’s exposure to credit risk. In addition, recent measures to de-risk Malayan’s investment portfolio have reduced its exposure to equity investment risk. Offsetting factors include the company’s high reliance on reinsurance to support the underwriting of large commercial risks and its exposure to counterparties that are non-rated on an international financial strength rating scale. Additionally, the balance sheet is viewed to be sensitive to shock events, particularly arising from the occurrence of multiple severe catastrophe events in short succession. Business profile The business profile assessment of neutral reflects Malayan’s position as one of the largest non-life insurance companies in the Philippines. The company benefits from its affiliation with the Yuchengco Group of Companies, a large conglomerate in the Philippines, in terms of branding and distribution. Malayan continues to demonstrate a strong commitment to digital transformation, which is an important pillar of its long-term strategy for retail business development. Source: www.asiainsurancereview.com

The finalists for the 28th Asia Insurance Industry Awards have been revealed, with 47 of the region's top insurers, reinsurers, brokers, risk managers and service providers making the shortlist. The awards are well known for their stringent criteria and transparent selection process, overseen by a panel of expert judges from across the insurance industry. This year, the awards attracted almost 200 entries in 17 categories. For the first round of remote selection, judges went through the entries based on a 1,200-word writeup to arrive at a shortlist of entries. The final round of judging will be held on 29 August 2024, where judges will discuss each of the entries in detail before selecting the winners through a secret ballot. The entire judging process is being audited by KPMG. The winners will be feted at the awards gala dinner on 4 November 2024 in conjunction with the 20th SIRC at the Marina Bay Sands Expo & Convention Centre.  Asia Insurance Awards 2024 finalists Award Finalists Life Insurance Company of the Year AIA Singapore HSBC Life (International) Limited Nan Shan Life Insurance Company General Insurance Company of the Year Bajaj Allianz General Insurance Company ERGO Insurance (Thailand) Public Company Limited Go Digit General Insurance Limited Health Insurance Company of the Year AIA Singapore Go Digit General Insurance Company Digital Insurer of the Year AIA Singapore FWD Singapore Kakaopay Insurance Educational Service Provider of the Year Apari Singapore College of Insurance Australian and New Zealand Insurance Institute of Insurance and Finance General Reinsurer of the Year Everest Reinsurance Company Munich Re National Reinsurance Corporation of the Philippines Broker of the Year Marsh Asia Prudent Insurance Brokers Pvt Ltd WTW Sustainability Award AIA Group Cathay Life Insurance Krungthai-AXA Life Insurance PLC InsurTech of the Year Discovermarket Asia Pte Ltd Everpro Insurance Brokers Co. Ltd IBISA Suyambu Pvt Ltd Technology Initiative of the Year AIA Singapore (iSmart) Discovermarket Asia Pte Ltd (Marketplace-as-a-Service platform) Roadzen (xClaim- AI Powered Claims Management Solution) AI Initiative of the Year Go Digit General Insurance Limited Roadzen Taiwan Life Insurance Co. Ltd Service Provider of the Year APRIL International LIMRA and LOMA Sedgwick Verisk Corporate Risk Manager of the Year Mani Marwah, Chiyoda Almana Engineering LLC Suchitra Narayanan, Revantage APAC Young Leader of the Year Hisham Raissi, Allianz Insurance Singapore Lee Pit Wen, Marsh Singapore Rupert Roberts, WTW Woman Leader of the Year Jasleen Kohli, Go Digit General Insurance Limited Dr Sandar Oo, Myanma Insurance Wong Sze Keed, AIA Singapore Lifetime Achievement Award *Winner to be revealed during the awards presentation on 4 November 2024 For more information on the awards, please contact Ms. Jennifer Chee at Email: jennifer@asiainsurancereview.com Source: asiainsurancereview.com

PIRA Executive Director Michael Rellosa and General Manager Rogelio Concepcion recently attended the tax forum titled "Taxation beyond borders" as part of BDB Law's crystal anniversary. The law firm brought together clients, colleagues, partners, and friends to show its appreciation to those who have supported BDB over the past 15 years.