This week in insurance: UPI dominates payments in India, AXA re-domiciles to HK, Vietnam goes digital

In addition, SingWealth Holdings has obtained an insurance brokerage licence in Hong Kong.

Asia-Pacific's insurance sector from 26 to 30 May saw accelerating digital adoption, highlighted by India’s preference for UPI for premium payments and Vietnam's shift to digital IDs, alongside corporate realignments like AXA’s planned re-domiciliation to Hong Kong.

Digital payment preferences amongst Indian insurance buyers are shifting, with Unified Payments Interface (UPI) now accounting for over one-third of all insurance premium transactions, according to data from Policybazaar.

The rise is most notable in investment-cum-insurance products, which saw UPI usage grow by more than 45% in FY25.

Meanwhile, in Vietnam, the Vietnam Social Security (VSS) will stop issuing paper health insurance (HI) cards beginning 1 June.

Citizens will instead use digital identification methods such as the VssID – Digital Social Insurance app, the VNeID app, or chip-based Citizen ID (CIC) cards for medical services under the HI scheme.

In other regional developments, AXA Hong Kong and Macau have announced plans to re-domicile AXA China Region Insurance Company (Bermuda) Limited (ACRIB) from Bermuda to Hong Kong under the city’s new company re-domiciliation regime, pending regulatory approval.

The move will not affect ACRIB’s legal entity, organisational structure, or day-to-day operations.

Additionally, SingWealth Holdings has secured an insurance brokerage licence in Hong Kong, enabling the establishment of its new subsidiary, PFPFA HK Limited.

The new licence will allow SingWealth to offer wealth management and insurance brokerage services to clients in Hong Kong and the Greater Bay Area.

On the financial front, Allianz Malaysia Berhad reported a 14.3% year-on-year (YoY) increase in insurance revenue for the first quarter of 2025 (Q1 2025), reaching $367.2m (RM1.53b).

Across the broader Asia-Pacific (APAC) region, Chief Risk Officers (CROs) in APAC insurance firms are navigating one of the most complex risk environments in recent years, with cybersecurity, conduct, and operational risks emerging as top concerns, according to the latest EY-IIF Global Insurance Risk Management Survey.

Cybersecurity remains the leading risk in the region, cited by 62% of APAC CROs.

In leadership developments, FWD Group Holdings Limited has announced the appointment of Lau Soon Liang as President and Chief Executive Officer of FWD Life Insurance Corporation (FWD Philippines), effective 1 June.