Asia-Pacific and Oceania

Australia | Bangladesh | China | Hong Kong | India | Japan | Korea, South | Malaysia | Nepal | Pakistan | Philippines | Singapore | Sri Lanka | Taiwan | Thailand | Vietnam | New Zealand

Covid-19 has had a large impact on countries in the Asia-Pacific Region, particularly those with weak social protection nets. The World Bank projects at least 11 million people across East Asia and the Pacific falling into poverty, even under its ‘optimistic’ scenario. Various responses of insurance markets in the region have been seen, including fostering digitalisation and offering premium deferment programmes.

Within supervision and regulation, many Asian regulators took measures to facilitate continued access to insurance services and fair treatment of consumers during the pandemic. Digitalisation accelerated further, with regulators putting in place requirements to enable remote selling, e-signatures, electronic issuance of policies, video-based onboarding or Know Your Customer (KYC), and more use of digital communication channels. Changes in supervisory processes were seen, such as adopting virtual engagements with insurers, digital correspondence and digitalising regulatory reporting. Some of these changes will be permanent. In parallel, concerns about data privacy, cybersecurity and operational resilience continued to heighten. 

Asia-Pacific and Oceania news

• 2021 - OECD - Financial consumer protection and financial literacy in Asia in response to COVID-19

• 13 October 2020 - How COVID-19 is rebooting the insurance digitalisation roadmap in Southeast Asia
• 20 March 2020 - DBS Bank, a leading financial services group in Asia, has launched financial relief packages and initiatives to accelerate digital adoption and transaction fulfilment needs amid the coronavirus crisis. This includes a contact-free, emergency financing line for businesses, collateral-free digital loans, and digital processing of trade financing with no physical paperwork or contact needed by integrating all stages including letters of credit, import bills, trust receipts, banker’s guarantees and shipping guarantees online. (link)

Resources

• International Organisation of Pension Supervisors (IOPS) member responses - click here 

  • Information from IOPS members and other relevant supervisory authorities in response to the current situation, to help financial institutions and consumers from the private pension sector to face the consequences of this major crisis

By country

Australia

Three major insurers defer premium payments for six months

Income-protection insurance may offer relief during COVID-19 disruption

Australian regulator adapts 2020 agenda to prioritise COVID-19 response

• As its focus shifts to COVID-19, APRA said it is suspending all substantive public consultations and actions to finalise revisions to the prudential framework that are currently underway or upcoming. This includes consultations on prudential and reporting standards.
• While the regulator said it will keep the situation under review, it currently does not plan to recommence consultation on any non-essential matters before 30 September 2020.

Govt allows those financially stricken by COVID-19 to withdraw super funds early

Bangladesh

Aspire to Innovate (a2i), a programme of Cabinet Division and ICT Division of the Government of Bangladesh supported by the United Nations Development Programme, has formed a public-private consortium linking the government’s phone-based health service ‘Shastho Batayon’ with health-tech startups like olwel.com to provide digital health services whilst also encouraging social distancing. This uber-doctor model connects people with hundreds of doctors around the country through a toll-free hotline and online portal (corona.gov.bd). Other medical call services such as those provided by Synesis Limited and TRCL charge users a premium to connect and get professional advice, but at a much lower consultation cost than a hospital visit.

UNCDF is working with Ministry of Development of Digital Economy in Burkina Faso to accelerate the rollout of DiagnoseMe, a telehealth and diagnostics solution, conceived during the Hack for Wuhan event, held by Wuhan2020, an initiative that unites developers, designers, builders, and creators who use technology to find solutions for the coronavirus. (link)

China

Allianz Group forecast the Chinese insurance market to undergo strong recovery in 2021

Online health insurance market will grow 43% per year until 2025

Insurers show support for 'street vendor economy'

Ping An motor app provides services tailored to pandemic lockdown

• Ping An Insurance Group said that since the outbreak of COVID-19 and China's strict lockdown measures were implemented in January, its Ping An Auto Owner app has provided services to 12.3m users, with online self-service insurance claims accounting for 40% of the services.

Coronavirus drives digital shift in insurance sector

CBIRC investigates Q1 operational status of life insurers

Blockchain technology helping overcome Covid-19 outbreak in China

• For example, Alipay, the world’s leading payments and lifestyle platform owned by Ant Financial Services Group, has launched a blockchain-powered online information platform for epidemic prevention materials in Zhejiang Province, ensuring the logistics and usage of materials such as face masks and protective clothing more transparent. Alipay has also launched a blockchain-powered program for developers working on epidemic mini-programs on the platform.
• Ant Duo-Chain, a blockchain-powered supply chain finance platform developed by Ant Financial, is helping many small and medium-sized suppliers to apply for loans from banks based on their receivables from large enterprises. The platform helps them deal with potential financial constraints during this epidemic. For example, Guangzhou Wubiao, an import and export trading company, recently received loans amounting to 2 million-yuan with its receivables from e-commerce platform 1919.com.

Digital insurance products are being launched. In China WeSure, the insurance arm of Tencent, has rapidly launched a suite of products, accessible within the WeChat Pay, to cover those affected by coronavirus, from medical personnel to SMEs. It has also launched a free insurance policy open to all Chinese citizens aged 0-65 through its corporate social responsibility arm.

SCOR launches COVID-19 insurance info

• SCOR has set up an insurance information platform in China to help it in its battle against COVID-19. According to a press release by SCOR, the new platform would help those on the frontlines battling the coronavirus pandemic, stay informed of their rights and access insurance protection cover.

Hong Kong

Contactless insurance sales extended

India

India after Covid webinar series - click here

IRDAI plans to set up a pandemic risk pool

Health insurance purchase doubles between March and May

Surge in COVID-19 cases but insurance claims low

Public sector general insurance agents seek financial package

IRDAI directs settlement of COVID-19 insurance claims within two hours

Force majeure will not apply to life policies

Indian insurer offers policyholders more time for premium payments

World's largest public health insurance to cover COVID-19

Affordable COVID-19 insurance product launched

New standard health insurance policy to cover COVID-19 treatment

Even as India registered its largest one-day peak in COVID-19 cases on 1 April 2020, the Insurance Regulatory and Development Authority of India (IRDAI) cleared the standard health insurance policy that would also cover the cost of hospitalisation treatment on account of the pandemic.

India: Insurer to support its COVID-19-positive agents financially

Indian brokers association asks for lightening of regulations during epidemic

IRDAI urges insurers to extend life premium renewal period

New group-health insurance cover for COVID-19

A new employee health benefits platform, www.plumhq.com, in collaboration with an Indian health insurer, has introduced a group-health insurance cover against the COVID-19 pandemic for corporate employees and their families.

The new group-health insurance policy will provide a hospitalisation cover of $6,535. It additionally offers an outpatient-department benefit of $65 which can be used against consultations, prescribed diagnostics and prescribed pharmacy.

IRDAI eases rules as brokers voice fears of lapses in insurance coverage

Large corporations risk lapsing insurance policies for their plant and machinery as well as employees, as both insurers and businesses are forced to shut shop because of coronavirus-related lockdowns in several parts of the country.

In a development, the IRDAI yesterday announced several measures aimed at ensuring continued proper service to policyholders and customers. All insurers have been asked to maintain continuity of business operations through alternative modes including telephonic and digital contacts.

Insurer launches cheapest COVID-19 cover

The ‘COVID-19 Protection Cover’ provides cover to individuals between 18 and 75 for a sum insured of $330 for a premium of $2.

The policyholder, if tested positive for COVID-19 at any government-authorised testing centre, will receive the entire sum insured amount in a lump sum irrespective of hospitalisation expenses, subject to an initial waiting period of 14 days.

The cover excludes people with travel history to any location overseas after 31 December 2019. Another exclusion under the cover is that no policy benefit can be availed if the insured has been quarantined for suspected COVID-19, or diagnosed with COVID-19, before the risk inception date, or within the initial 14-day waiting period.

Indian insurers have gone out of their way to reassure life policyholders that nominees of individuals who die from coronavirus will get the sum assured, even though many life products exclude coronavirus on the grounds that it is not classified as a ‘critical illness’. “Lots of policies have had exclusions placed in them in the last 10 years due to [insurers’] experience with flu-type outbreaks,” says Michelle Crorie, a partner at law firm Clyde & Co. (Microinsurance Network)

Japan

Life insurers seek to raise payment amount for coronavirus-related death claims

Despite low numbers of infections and low claims, Moody’s analysts believe insurers in Japan and Korea should expect to face business disruption and financial risk from the coronavirus outbreak, with further downside risk should infections rise significantly.

Moody's Analysts say direct claims related to the coronavirus outbreak will come from two main sources: claims related to medical expenses and death benefits from infected victims; and claims related to specific conditions such as event cancellations and business interruptions.

Korea, South

Korea most exposed to a Chinese slowdown, with impact on insurance

Despite low numbers of infections and low claims, Moody’s analysts believe insurers in Japan and Korea should expect to face business disruption and financial risk from the coronavirus outbreak, with further downside risk should infections rise significantly.

Moody's Analysts say direct claims related to the coronavirus outbreak will come from two main sources: claims related to medical expenses and death benefits from infected victims; and claims related to specific conditions such as event cancellations and business interruptions.

Malaysia

BNM measures to address Covid-19 impact

General insurers support policyholders through COVID-19 pandemic

Industry finalises details of COVID-19 test fund

A key InsurTech, PolicyStreet, announces measures to help consumers

• 1. Guaranteed savings for insurance renewal during MCO period, to help reduce SMEs' burden of renewing (mandatory) insurance
• 2. Piloted an inaugural webinar on "Covid-19: All you need to know about group medical insurance", which was participated by more than 30 listed companies and SMEs
• 3. Launched 2 online medical cards with Covid-19 coverage. Easy application online, starting at RM37/m. Also partnered with Razer Inc. FinTech and JaGaApp to benefit their end users
• 4. Launched a Covid-19 insurance helpline. Call 03-33100063 from 930am to 600pm. We help answer any query you may have with your employee medical plan, especially on Covid-19 coverage
• 5. Structured and customised a Covid-19 coverage plan for all Foodpanda riders 6. motor.policystreet.com enhanced to help Malaysians to compare and renew car insurance online in 3 simple steps

Bank Negara Malaysia (BNM) announces additional measures to support SMEs and individuals.

Life insurers step up relief measures for policyholders during COVID-19 crisis

The Life Insurance Association of Malaysia (LIAM) and its member companies are taking proactive steps in providing additional relief measures for policyholders who are impacted by the economic slowdown due to the COVID-19 pandemic in the country.

The following additional benefits are a few examples of relief measures taken by insurers:

• MYR5,000 ($1,138) cash relief for customers who are diagnosed with Covid-19
• Cash benefits/allowance for hospitalisation (for example up to MYR250 per day up to 30 days of hospitalisation)
• Special lump-sum death benefits (ranging from MYR5,000-20,000 upon the death of the insured)
• Four insurance companies have pledged MYR1m each as part of their financial assistance/support programme for customers affected by COVID-19

Nepal

Insurers start processing COVID-19 claims

Insurance scheme launched for low-income citizens

Government announces insurance cover for health workers

Pakistan

Insurer launches first COVID-19 cover

Pakistan has seen a spike in the number of positive cases, prompting private life insurer EFU Life to launch the first COVID-19 cover in the market.

The ‘COVID-19 Care’ cover provides complimentary cover to all clients of the company. In the event that an insured client passes away due to COVID-19, a lump sum amount of $636 will be paid to the beneficiary in addition to the contractual death benefits from the existing policy.

Philippines

3 in 4 respondents agree insurance has become more important

Philippine insurer provides free insurance coverage to delivery riders

State health insurer to cover treatment and testing for COVID-19

Regulator allows online insurance sales during COVID-19 quarantine period

INSURANCE COMMISSIONER FUNA ISSUES GUIDELINES ON REMOTE SELLING OF INSURANCE PRODUCTS FOR THE DURATION OF THE ECQ

Juan Paolo Roxas, head of the Philippines Insurance Commission microinsurance division, believes the coronavirus pandemic could actually help Filipinos become more aware of the importance of insurance cover. “I think more people will be inclined and be aware that insurance is actually there and helping us,” says Roxas. Jonathan Batangan of Philippines insurance brokers Cebuana Lhuillier thinks the pandemic could provide an opportunity to create new products to provide cover against coronavirus. However, with many countries encouraging ‘social distancing’ and self-isolation, distributing and accessing inclusive insurance products through mobile network operators (MNOs) and online – as well as supporting clients with information – will become even more important. (Microinsurance Network)

Singapore

Insurance industry extending premium deferment relief measures for policyholders

Insurance industry supports customers through new COVID-19 measures

Insurers to help customers ride out COVID-19 crisis

Singapore: Regulator advises financial institutions to adopt safe-distancing measures

Sri Lanka

Insurer offers free cover to state government employees

Taiwan

Taiwan: Regulator directs insurers to respond to COVID-19        

Thailand

Several insurers to suspend sales of COVID-19 policies

Such insurance policies offer two types of coverage; a lump sum payment when diagnosed with the virus and medical bill coverage – with premiums ranging from THB99 ($3) to THB1,250.

At the Thai General Insurance Association's meeting last week, participants had expressed concerns about the moral hazards faced by policyholders and insurers underestimating risks associated with providing COVID-19 coverage.

Given that the availability of COVID-19 insurance could encourage policyholders with high sums insured to expose themselves to the virus and make claims, the OIC said it is closely monitoring both insurers and policyholders.

As of 18 March, the OIC had approved 25 firms to sell COVID-19 insurance policies and 20 of them already launched and sold over 2m COVID-19 insurance policies.

However, several insurers are now set to suspend sales of insurance policies covering lump-sum payouts as policy sales approach their threshold of 500,000 to 750,000.

At the same time, some insurers have also paused sales to revise coverage conditions including the implementation of a 14-day waiting period.

In view of such developments, the OIC said it will tighten its approval process for future launches of policies covering lump sum pay-outs.

Vietnam

Vietnam tells insurers to halt sale of COVID-19 related products

New Zealand

New Zealand clamps down on misleading COVID-19 insurance ads