This week in insurance: Malaysia offers premium freeze, M&A falls 25%, Manulife extends medical partnership

Cyber liability coverage is primarily targeting small-to-midsize enterprises.

Asia-Pacific's insurance sector from 10 to 14 March saw some regulatory changes to temper rising costs and notable business expansions.

Malaysian insurers and takaful operators (ITOs) have agreed to spread premium increases until 2026, cap annual premium hikes below 10% for around 80% of policyholders, and offer a one-year premium freeze for those aged 60 and above with minimum coverage plans, as an interim measure.

Additionally, more affordable medical and health insurance and takaful (MHIT) products will be introduced by 2025.

On the other hand, Asia-Pacific’s insurance carrier mergers and acquisitions (M&A) activity fell by 25% in 2024 compared to 2023 as established firms prioritised organic investment, focusing on data analytics amidst geopolitical uncertainties, according to Clyde & Co’s annual insurance Growth Report.

Moreover, cyber liability coverage is primarily targeting small-to-midsize enterprises (SMEs), with most policies covering businesses with less than $10m in annual revenue, according to AM Best.

Ransomware remains the most common type of claim, often involving quick payouts to threat actors. More than half of the reported claims were for "incident response," including ransomware attacks and business email compromise.

Meanwhile, natural resources companies are set to increase their investments in clean energy technology, but lack of insurance remains a challenge with 53% of companies saying blanket exclusions hinder their ability to transfer risks, whilst 48% cited issues with limited duration and inflexibility of coverage.

Japan Post Insurance has signed a memorandum of understanding with KKR and its subsidiary, Global Atlantic Financial Group, to discuss a new investment in a reinsurance vehicle sponsored by Global Atlantic.

The company plans to hold more than a 50% stake in the vehicle and invest between $1b and $2b.

Kita, a carbon insurance specialist, has expanded its footprint in Australia, adding to its existing coverage for buyers and investors domiciled in the UK, USA, Canada, Switzerland, Singapore, and the EU/EEA.

Similarly, Manulife has extended its strategic partnership with CUHK Medical Centre, originally established in 2021, to incorporate histotripsy as a treatment option under its ‘Medical Professional Support Service.’ Eligible patients will be enrolled in clinical trials for monitoring and evaluation of treatment outcomes once the procedure becomes publicly available at the centre.