Insurers can build greater trust in AI by using customer-specific information.
The insurance industry from 28 September to 2 October saw a regulatory penalty, major product and leadership moves, and growing discussion of artificial intelligence trust.
FWD Life Insurance Company (Bermuda) Limited has been fined $2.5m (HK$19.5m) by Hong Kong’s Insurance Authority (IA) for shortcomings in its anti-money laundering and counter-terrorist financing controls.
The penalty follows an on-site inspection under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance.
The IA found deficiencies in the insurer’s controls for identifying third-party payment payors, monitoring potentially suspicious transactions, including cash payments, and capturing and screening data on politically exposed persons. In a statement, FWD said remediation was substantially complete in the areas identified for improvement following the routine inspection, which began in 2023.
The company said it had conducted a thorough review of customers onboarded during the relevant period and confirmed that no ineligible customers had been taken on.
“FWD cooperated closely with the IA and is fully committed to making ongoing investments in people, systems, and processes to ensure we meet the high standards expected of us,” it said in a statement.
On product launches, Prudential Singapore has announced that all 5,400 of its tied-agency financial representatives will begin offering unit trusts and other wealth accumulation products starting in 2027.
With this, Prudential’s tied-agency representatives can now distribute unit trusts, complementing its life and health insurance solutions, the insurer said.
The company stated that the move comes in response to rising demand for broader financial advice, allowing clients to discuss protection, health, savings, and retirement planning within a single consultation.
Also, Prudential Assurance Company Singapore CEO Chan San San will take up a newly created role as chief partnership officer at Eastspring Investments, Prudential plc’s asset management business, from 28 September 2026.
Based in Singapore, Chan will report to Eastspring CEO Rajeev Mittal and join the company’s executive management committee.
She will lead efforts to strengthen collaboration between Prudential’s life insurance businesses and Eastspring, focusing on developing investment, wealth and retirement solutions for customers across Asia.
Meanwhile, Income Insurance has appointed Khoo Kah Siang as its new CEO, effective 23 January 2027, subject to regulatory approval from the Monetary Authority of Singapore.
He will succeed Andrew Yeo, who has resigned to pursue other opportunities after serving at the company since 2015 and being appointed CEO in 2019.
Khoo most recently served as CEO of Emerging Markets at Manulife Asia, where he oversaw a portfolio covering Indonesia, the Philippines, Malaysia, Cambodia, and Myanmar.
Moving on to technology, analysts said insurers can build greater trust in artificial intelligence (AI) by using customer-specific information and setting clear rules for how the technology handles data.
“Using publicly available data for AI-based analytics involving customers can erode trust,” Olive Lam, senior vice-president at Lockton Companies LLC, told Insurance Asia.
Oki Stefanus, a partner at EY-Parthenon Indonesia Strategy & Transactions, said insurers also need clear rules governing AI use.
“For insurance firms looking to integrate AI across their operations, establishing robust governance frameworks, transparency, and clear accountability is essential to earn the trust not only of customers but also of other stakeholders,” he told Insurance Asia.