Post on 17-Jan-2016
Monthly Report January, 2011Monthly Report January, 2011
Planning DivisionPlanning Division
Kuo Chao (Ken) Kuo Chao (Ken) HungHung
14 Jan. 201114 Jan. 2011
Agenda
Review of 2010
Environment and Challenge
Objective & Strategy of 2011
1.3
1.82.0
2.9
3.9
2006 2007 2008 2009 2010(e)
63,20969,972
82,796
123,157
159,853
2006 2007 2008 2009 2010(Q3)
Market Review
Market FYPMarket FYP
32%
32%
Unit: Trillion
9,787
70,833
46,173
2008 2009 2010
Cathay FYPCathay FYP Unit: Million
53%53%
Market Agent #Market Agent #
2,079
8,0726,151
2008 2009 2010
Cathay Agent #Cathay Agent #
31%31%30%30%
Review of Review of 20102010
Life insurance Market still grows, we grow More!!!Life insurance Market still grows, we grow More!!!
FYP Share(%) Rank Growth(%) agents #
PrudentialPrudential 784.1 31.6% 1 24.5% 86,711
Bao VietBao Viet 581.0 23.4% 2 11.3% 19,766
ManulifeManulife 275.5 11.1% 3 24.2% 8,743
ACEACE 245.3 9.9% 4 28.3% 7,392
Dai-ichiDai-ichi 237.5 9.6% 5 56.0% 14,962
AIAAIA 234.7 9.5% 6 18.3% 12,947
KoreaKorea 51.2 2.1% 7 156.0% 4,406
CathayCathay 41.8 1.7% 8 22.3% 4,752
PrevoirPrevoir 23.2 0.9% 9 -31.0% --
G. EasternG. Eastern 3.1 0.1% 10 -39.3% 174
VCLIVCLI 0.5 0.0% 11 N/A --
TotalTotal 2,477.9 100% -- 23.4% 159,853
Unit: Billion VND
2010 Q1~Q3
Note : 2010 FYP is 70.8 B for Cathay and 3,859 B (e) for VN. Market Share: 1.8% (e)
Performance of the CompetitorsReview of Review of
20102010
84%69% 74%
62% 52%
39%27%17%
2006 2007 2008 2009 2010~Q3
Endowment Investment Other
Product SalesReview of Review of
20102010
Market Market CathayCathay
Endowment is leading, but Endowment is leading, but Investment is increasing!Investment is increasing!
Endowment and Education Endowment and Education are the main product!are the main product!
Rider 3.3%
Endowment 62.1%
Education 15.8%
Whole Life 13.0%
Term Life 5.8%
Major Project - New Branch SetupReview of Review of
20102010
Hai PhongHai Phong
Dong NaiDong Nai
Dong Nai
2010 5 wkm
4 Branch
515 Agents
Hai Phong
2010 11 wkm
3 Branch
506 Agents
Strengthen the operating of Strengthen the operating of South and North VNSouth and North VN
Expand Service area and Expand Service area and Premium Income Premium Income
Major Project - Product DesignReview of Review of
20102010
Increase Product Depth, Develop new channelIncrease Product Depth, Develop new channelIncrease Product Depth, Develop new channelIncrease Product Depth, Develop new channel
IncreasecoverageIncreasecoverage
Short-termEndowmentShort-term
EndowmentStrategyProductStrategyProduct
Term Loan ProtectionTerm Loan Protection
Bancca-suranceBancca-surance
Project team establishmentProject team establishmentProject team establishmentProject team establishment
Survey information from Market & Agency
Make suitable product
Survey information from Market & Agency
Make suitable product
Prepare better training material
Improve sale skills
Prepare better training material
Improve sale skills
Medical RiderTerm Rider
Major Project – Sales PromotionReview of Review of
20102010
Stimulate sales, Increase activitiesStimulate sales, Increase activitiesStimulate sales, Increase activitiesStimulate sales, Increase activities
IncentiveprogramIncentiveprogram
SalesPromotion
SalesPromotion
FP per Policy FP per Policy Annual Payment Annual Payment
79%
80%
86%
76%
78%
83% 84%
82%
87%90%
91%
89%
1 2 3 4 5 6 7 8 9 10 11 12
3.43.6
4.6 5.25.1
5.3 5.3 5.4
6.06.3 6.46.5
1 2 3 4 5 6 7 8 9 10 11 12
International Summit (13~3wkm) MDRT
A03 (7wkm)Golden Tree Lucky Draw (11~12wkm)
Customer Campaign
Exciting Summer (Q2)
Major Project – Compensation SchemeReview of Review of
20102010
Fit Vietnam culture, Encourage Promotion to SASFit Vietnam culture, Encourage Promotion to SASFit Vietnam culture, Encourage Promotion to SASFit Vietnam culture, Encourage Promotion to SAS
FYC Base
Easier to understand,
Easier to recruit
FYC Base
Easier to understand,
Easier to recruit
Raise full time salary
Encourage IA to pursue promotion to SAS
Raise full time salary
Encourage IA to pursue promotion to SAS
13740
72 77 124154
192
244
238309
301
360
579
1 2 3 4 5 6 7 8 9 10 11 12 13
231112
216 267453
673
438
662
680714
989
1,2901,291
1 2 3 4 5 6 7 8 9 10 11 12 13
IA Recruit IA Recruit Promote to SAS Promote to SAS
Agenda
Review of 2010
Environment and Challenge
Objective & Strategy of 2011
724
835
1,042 1,0601,168
1,296
700
900
1,100
1,300
6.2%8.2%
8.5%
5.3%6.0%
6.5%
5%
6%
7%
8%
9%
GDPGDPgrowthgrowth
GDPGDPper Capitaper Capita
InflationInflationraterate 7.5% 8.3%
10.3%12.0%6.7%
23.1%
6%
11%
16%
21%
2006 2007 2008 2009 2010(e) 2011(f)
Economic Environment
EnvironmeEnvironment & nt &
ChallengeChallenge
Unit: USD
Economic recover and keeps growing !
People become richer !
Inflation needs to be under controlled !
10y bond10y bond
HCMHCMStock IndexStock Index
ExchangeExchangeraterate
Economic Environment
EnvironmeEnvironment & nt &
ChallengeChallenge
Unit: %
Interest rate still high !
Stock market risky !
FX rate gores depreciation !
11.75
484.7
19,498
New company join
Life Insurance Environment
2008 2009 2010 2011 2012
9 10 11 13 15
EnvironmeEnvironment & nt &
ChallengeChallenge
Customer Preference change
Operating modeevolution
Bancassurance Bancassurance
General Agency (GA)General Agency (GA)
Insurer #Insurer #
2008 2009 2010 2011
17% 27% 39% ?
Investment product %Investment product %
Challenges of 2011
EnvironmeEnvironment & nt &
ChallengeChallenge
Uncertainty of Interest RateUncertainty of Interest Rate
Challenge
Difficulties on Product Difficulties on Product Design and PricingDesign and Pricing
Affection
High InflationHigh Inflation
Competition Competition
Increase Operation CostIncrease Operation Cost Purchase willingness Purchase willingness
Sale and recruit are going to Sale and recruit are going to be toughbe tough
Agenda
Review of 2010
Environment and Challenge
Objective & Strategy of 2011
Annual Target2011 Target
46.2 70.8
2009 2010 2011
Agent #
Market Share: 2.2%Unit: Billion
FYP
37.665.0
2009 2010 2011
8,0726,151
2009 2010 2011
PFYP
108.5108.5
8,9538,953
53.2%
53.8% 100100
+881
Key point
Target & Target & StrategyStrategy
Recruit more proactively
Strengthen agent ability
Increase Product attractively
KYC Customer and Agent
Cooperate with Non-Life
2011~2015 Plan
Market share: 7% Agent: over 10,000
Break-even: before 2015
17
Strategy of Planning Div.
AgentAgent System
CustomerCustomerManagementManagement
Product Product DevelopmentDevelopment
Target & Target & StrategyStrategy
Recruitment & Training
Promotion
Recruitment & Training
Promotion
Meet demand
Differentiating
Advertising
Meet demand
Differentiating
Advertising
Interaction
Customer Service
Interaction
Customer Service
Agent SystemTarget & Target & StrategyStrategy
Recruit-ment & Training
Recruit-ment & Training
Increase recruit incentive Increase recruit incentive
Recruiter Recruiter IA IA
RewardReward
Strengthen BDO systemStrengthen BDO system
PromotionPromotion
Promotion Reward
IA SAS EAS
Promotion Reward
IA SAS EAS
Encourage promote to SM
EAS SM (NSS project)
Encourage promote to SM
EAS SM (NSS project)
Product DevelopmentTarget & Target & StrategyStrategy
Meet Demand
Meet Demand
Anti-inflationAnti-inflation
WealthManagement
WealthManagement
Increasing Sum Assured
Interest Feedback
UL Investment + Protection
Annuity Retirement Plan
Education Product
Whole life + Cash Coupon
Cover 3 generation
Life plan forChildren
Life plan forChildren
Differentiating
Differentiating Diversified Product
Product with variety featuresDiversified Product Product with variety features
Cooperate with Non-life Contact customer with simple productCooperate with Non-life Contact customer with simple product
Advertising Advertising Product Advertisements on TV Product Advertisements on TV
Customer ManagementTarget & Target & StrategyStrategy
InteractionInteraction Sales Incentive Program Encourage agent to sale MORE!! Sales Incentive Program Encourage agent to sale MORE!!
Customer Campaign Add topics between Agent Customer Spread Cathay brand image
Customer Campaign Add topics between Agent Customer Spread Cathay brand image
CustomerService
CustomerService
Competition: Product ServiceDiscover the need, make it Unique Satisfaction
Competition: Product ServiceDiscover the need, make it Unique Satisfaction
Ken HungKen Hung
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