1 monthly report may, 2010 may, 2010 planning division howard wang 28 may. 2010

1

MONTHLY REPORTMONTHLY REPORT May, 2010May, 2010

Planning Planning DivisionDivision

Howard WangHoward Wang

28 May. 201028 May. 2010

2

Market information

updated

Analysis of promotion

product

Analysis of surrender

policy

Southeastern Asia

insurance market

Engaged Project This Month

3

Market News

After receiving Application Form and First Year Premium, Agent sends SMS to Korea Life.This SMS is an evidence for Temporary insurance.

(SMS = Short Message Service)

After receiving Application Form and First Year Premium, Agent sends SMS to Korea Life.This SMS is an evidence for Temporary insurance.

(SMS = Short Message Service)

New service in Korea Life

4

Market News

Prudential has used GA model to extend it’s business in Vietnam since 2003. Nowadays, Prudential has 130 GA offices in 63 provinces. GA model contributes 71% total income from new contracts.

Dai-ichi started to use GA model from 2009. It has 3 GA offices in the first quarter of 2010 and plans to open other 10 GA offices during this year.

Prudential has used GA model to extend it’s business in Vietnam since 2003. Nowadays, Prudential has 130 GA offices in 63 provinces. GA model contributes 71% total income from new contracts.

Dai-ichi started to use GA model from 2009. It has 3 GA offices in the first quarter of 2010 and plans to open other 10 GA offices during this year.

General Agency (GA)

5

Market News

ManuAIA

Cathay

Prud

Bao Viet

ACE Daiichi

0

50

100

150

200

250

Company Prud. Bao Viet Manu ACE AIA Daiichi Cathay

Prem. Income 220.9 166.7 77.6 50.1 58.2 53.8 10.3

Proportion 33.3% 25.1% 11.7% 7.5% 8.8% 8.1% 1.6%

* Korea(20.7)* Korea(20.7), , Prevoir(4.8), G. E.(1.3) and VCLI(0.03) / SPrevoir(4.8), G. E.(1.3) and VCLI(0.03) / Source: AVI 2010 Q1 Reportource: AVI 2010 Q1 Report

In BillionIn Billion

NB Premium Income

33.3%33.3%

25.1%25.1%

11.7%11.7% 7.5%7.5% 8.8%8.8%1.6%1.6%8.1%8.1%

42.1%

6

Market News

Total Premium Income

1.13

0.93

0.31

0.49

0.00 0.20 0.40 0.60 0.80 1.00 1.20

Prudential

Bao Viet

Manulife

Others

Company Prudential Bao Viet Manulife Others

Total Prem. Income 1.13 0.93 0.31 0.49

Proportion 39.4% 32.6% 10.8% 17.2%

Source: AVI 2010 Q1 ReportSource: AVI 2010 Q1 Report

In TrillionIn Trillion

7

Market information

updated


product


policy

Southeastern Asia

insurance market


8

Promotion-A03

29

68

53

10

3

0

12

2 1 0

35

31

0

5

10

15

20

25

30

HCM1 HCM2 HN1 HN2 HN3 DN1 CT1 DNa1

201004 201005

4th WM:35

5th WM:14

4th WM:16

5th WM: 4

Source: data update to 2010/5/19 from company’s databaseSource: data update to 2010/5/19 from company’s database

Unit: Number of Policy

9

Promotion-A03

Unit: million VND

Working Month 4th WM 5th WM Total

No. of Policy 64 27 91

First Premium 703.0 229.5 932.5

Annualized Premium 1,017.3 356.5 1,373.8

There are two long term vacations in 5th Working Month, so no. of policy in 5th WM is less than it in 4th WM.

There are two long term vacations in 5th Working Month, so no. of policy in 5th WM is less than it in 4th WM.

10

Promotion-A03

• Promotion Period: 6th working month• Mode: Original Performance FYP rate × 2

Original Promotion Period

PFYP rate 10% 20%

11

Exciting Summer -C05 、 C06 、 C07

Unit: Number of Policy613

534

259

375 394 405

0

100

200

300

400

500

600

13WM 1WM 2WM 3WM 4WM 5WM

Grand TotalC05C06C07

5.1% 8.0%

Total Number of Policy

12


Unit: million VND

2,3622,2462,144

1,1202,230

2,537

5.85.75.7

4.34.24.1

-

500

1,000

1,500

2,000

2,500

3,000


-

1.0

2.0

3.0

4.0

5.0

6.0Total First Premium

Average of TFP4.8%

10.2%

Total First Premium

13

212

180

114

175

222

246

35% 34% 44% 47% 56% 61%

-

50

100

150

200

250


Grand Total C05 C06 C07 % of getting standard



26.9%40.6%

* FP standard : C05 and C06 are 3.5M , C07 is 5M

No. of Policy reach the standard

14


Conclusion :

After comparing the number of policy and total first premium with 3rd working month, both of them are increasing in 4th and 5th working month.

The statistics of didn’t reach the standard :

65 policies(8%) have 1M less than FP standard.

189 policies(24%) only have basic plan.

121 policies(15%) model are not annual payment.

Conclusion :

After comparing the number of policy and total first premium with 3rd working month, both of them are increasing in 4th and 5th working month.

The statistics of didn’t reach the standard :

65 policies(8%) have 1M less than FP standard.

189 policies(24%) only have basic plan.

121 policies(15%) model are not annual payment.

Add

Rider

Annual

Payment

More

Chances

15

Market information

updated


product


policy

Southeastern Asia

insurance market


16

5

49

111

3

25

109

00

40

80

120

Edu Endow Endow Whole Term

HCM HN

Surrender Policy


17

Surrender Policy

56

2

133

12

0

50

100

150

0~1 1~2

HCM HN


Policy year HCM HN Total

0~1 2 12 14

1~2 56 133 189

There are 132 policies only pay one time yearly premium and 54 policies of Single Payment.

There are 132 policies only pay one time yearly premium and 54 policies of Single Payment.

18

Surrender Policy

Reasons:

1. Most of our customers need money for treatments or their family.

2. Few of our customers expatriate to other countries.

Suggestion :

Our employees dissuade customers from submitting their surrender application.

For new products, they will have surrender value after paying two times of yearly premiums.

To keep educating our agents to make sure what customers need.

Reasons:

1. Most of our customers need money for treatments or their family.

2. Few of our customers expatriate to other countries.

Suggestion :

Our employees dissuade customers from submitting their surrender application.

For new products, they will have surrender value after paying two times of yearly premiums.

To keep educating our agents to make sure what customers need.

19

Market information

updated


product


policy

Southeastern Asia

insurance market


20

Southeastern Asia Insurance Market

21


Source: Swiss Re, sigma No 3/2009

Life insurance market information :

Country Vietnam Singapore Malaysia Thailand Indonesia Philippines

Insurance density (USD) 7.5 2,549.0 225.9 77.2 20.1 16.2

Insurance penetration 0.7% 6.3% 2.8% 1.8% 0.9% 0.9%

Premium (million USD) 660 11,445 6,105 4,966 4,704 1,449

Share of world market 0.03% 0.46% 0.25% 0.20% 0.19% 0.06%

Note : 1.Insurance density: premium per capita in USD in 20082.Insurance penetration: premium in % of GDP in 2008

22


Source: LIMRA 2008

Marketing channel :

Note : According to LIMRA report, Philippines’s main sales channel is Traditional marketing, but there is no numbers in each sales channel in the report.

Country Singapore Malaysia Thailand Indonesia

Traditional (Agency) 75.0% 49.4% 75.0% 55.0%

Bancassurance 21.0% 45.3% 15~20% 20.0%

Insurance broker 3.0% 2.4% 5~10% 15.0%

Direct marketing 0.9% 2.1% 0.0% 10.0%

Others 0.1% 0.8% 0.0% 0.0%

23


Source: Monetary Authority of Singapore

Product Development :

Company Traditional Investment

AIA 16.2% 12.4%

Great Eastern 16.3% 7.9%

Prudential 7.5% 12.8%

NTUC Income 15.1% 2.5%

AVIVA 4.8% 4.5%

Total 59.9% 40.1%

1. Singapore: (Main life insurance companies)

24


Year Traditional Investment

2007 50.8% 49.2%

2008 63.2% 36.8%

2009 71.5% 28.5%

Source: Country Bank of Malaysia

Product Development :

2. Malaysia:

3. Vietnam:

Year Traditional Investment

2009 73.9% 26.1%

2010Q1 69.4% 30.6%

Source: AVI 2010 Q1 report

25

New Product

GA model research

Review Agent System

Review product

Promotion

and marketing activity

Planning Project Next Month

1 monthly report may, 2010 may, 2010 planning division howard wang 28 may. 2010

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