1 monthly report may, 2011 may, 2011 planning division david liu 27 may. 2011
TRANSCRIPT
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MONTHLY REPORTMONTHLY REPORT May, 2011May, 2011
Planning DivisionPlanning Division
David LiuDavid Liu
27 May. 201127 May. 2011
2
Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
3
Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
4
Market News
Prudential Vietnam has just opened a new general agency office in Tan Binh District, HCMC, widening its network to 200 units nationwide including customer service centers, branch offices and general agency and business offices.
So far, Prudential Vietnam is serving customers via multiple channels such as nationwide offices, direct sales agents, hot lines, website and via its partners like Vietcombank, Sacombank, VP Bank, An Binh Bank, MB Bank.
Prudential Vietnam fortify branch network
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Market News
ACE Life open the second representative office in HCM city in the 6 years ACE Life anniversary in Vietnam (4/5/2005-4/5/2011).On May 10, the new head office in Hanoi is opened.
ACE Life has 11 representative office, trade office and outlet in Vietnam’s big provinces and cities.
ACE Life open new outlet and representative
office in HCM and Hanoi
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Market News
The Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) officially offered the financial services on VCB-iB@nking with Korea Life Insurance Co Ltd.
Accordingly, the customers can make online payment for periodical insurance fees, automatic payment r making advanced payment for Korea Life in a quick, safe method with no bank charges.
Vietcombank cooperates with Korea Life
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Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
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Analysis of 2011Q1 Market situation
Our market share of NB premium is rank 7 and increase a lot (1.9%2.7%)
NB Premium and number of agents
CompanyNB
PremiumRank Market share(%)
Growth rate(vs 2010 Q1)
Number of agents
Prudential 259,381 1 (1) 30.9 (31.8) 17% 85,157 (2,618)
Bao Viet 205,180 2 (2) 24.4 (20.9) 23% 21,618 (1,619)
Manulife 100,316 3 (5) 11.9 (10.7) 29% 9,067 (160)
Dai-ichi 79,312 4 (3) 9.4 (11.1) 48% 13,227 (-545)
AIA 78,922 5 (6) 9.4 (9.4) 36% 14,668 (-626)
ACE Life 64,054 6 (4) 7.6 (11.0) 28% 7,496 (-666)
Cathay 23,013 7 (7) 2.7 (1.9) 124% 8,792 (670)
Korea life 18,195 8 (8) 2.2 (1.9) -12% 6,324 (926)
Great Eastern 5,311 9 (10) 0.6 (0.2) 320% 291 (111)
VCLI 3,274 10 (11) 0.4 (0.1) 10183% --
Prevoir 2,566 11 (9) 0.3 (0.9) -46% --
Total 839,524 -- 26% 166,690 (4,267)
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Analysis of 2011Q1 Market situation
Our market share of total premium is rank 8, we should keep increasing our renewal premium.
Total PremiumCompany
Total Premium
Renewal Premium
Rank Market Share(%)Growth rate
(vs 2010 Q1)
Prudential 1,250,455 991,074 1 (1) 38.4 (41.4) 11%
Bao Viet 979,052 773,872 2 (2) 30.1 (24.7) 5%
Manulife 372,907 272,591 3 (3) 11.4 (11.3) 21%
Dai - chi 204,959 125,647 5 (4) 6.3 (7.7) 24%
AIA 241,067 162,145 4 (5) 7.4 (7.5) 29%
ACE Life 136,854 72,800 6 (6) 4.2 (5.6) 39%
Cathay 28,326 5,313 8 (7) 0.9 (0.7) 117%
Korea Life 29,001 10,806 7 (8) 0.9 (0.6) 40%
Great Eastern 5,780 469 9 (10) 0.2 (0.1) 281%
VCLI 3,274 - 11 (11) 0.1 (0.0) 10183%
Prevoir 5,354 2,788 10 (9) 0.2 (0.3) -34%
Total 3,257,029 2,417,505 14%
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Analysis of 2011Q1 Market situation
Our premium per policy is closed to market level Our productivity ↑, but it is still less than market level
Productivity index Company Productivity(premium) Productivity(case) Premium per policy
Prudential 3.1 (3.5) 0.7 (1.0) 4.2 (3.6)
Bao Viet 9.9 (8.9) 1.3 (1.6) 7.7 (5.7)
Manulife 11.2 (11.6) 1.5 (2.6) 7.5 (4.5)
Dai - chi 5.9 (4.6) 0.8 (0.8) 7.6 (6.1)
AIA 5.3 (5.1) 0.9 (0.9) 5.6 (5.8)
ACE Life 8.2 (7.9) 1.3 (1.2) 6.3 (6.3)
Cathay 2.7 (1.8) 0.4 (0.4) 7.2 (4.6)
Korea Life 3.1 (7.2) 0.5 (1.0) 6.4 (7.1)Great
Eastern22.6 (1.5) 1.3 (0.2) 17.9 (9.8)
VCLI -- -- 1.0 (0.2)
Prevoir -- -- 0.3 (0.7)
Total 5.1 (5.2) 0.9 (1.1) 5.5 (4.5)
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Analysis of 2011Q1 Market situation
The product distribution in the market does not change obviously
The main product are still endowment and investment product
Endowment investment Term Whole life Annuity rider
2011Q1 49.2% 40.0% 2.8% 0.5% 0.1% 7.5%
2010 48.2% 42.6% 2.5% 0.6% 0.1% 5.9%
Product distribution
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Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
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Promotion Campaign-Happy Anniversary
Campaign period: 2011/6/16~2011/8/10
(7th ~8th working month of 2011)
Participant: Customers and Agents who sign the agency contract, include: IA, SAS↑, SM, Pre-BM, BM
Participant Product: All Cathay Product (except Single Premium Product)
In order to encourage customer buy more rider
and increase premium per policy
Promotion Activity: Lucky Draw
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Promotion Campaign-Happy Anniversary
Participant qualification:
Customer buy 1 policy+1 rider and First Premium≥6 M
Mark1:The Policy must be underwritten and accepted before 2011/8/22.
Mark2:The Policy owner or insured could not be the Cathay agent, staff or their relatives.
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Promotion Campaign-Happy Anniversary
Participant method:
1. If customers meet the participant qualification, they and their agents could have 1 lucky draw separately.
2. More ChancePart First premium Rider
Standard Every 2M in excess Every extra rider
More chance 1 1
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Promotion Campaign-Happy Anniversary
Example :
Customer buy 1 policy + 2 riders, first premium 10M
Drawing chance:
4 drawing chance
Part Qualification First premium Rider
Case1 policy + 2 riderFP=10M
FP=10M 2 rider
Standard1 policy + 1riderFP≥6M
FP≥6M 1 rider
chance 12
(Every 2M in excess )1
(Every extra rider )
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Promotion Campaign-Happy Anniversary
Customer prizes
Prize structure Item Amount
1st prize Notebook DELL INSPIRON 1
2nd prize Microwave oven ELECTROLUX 5
3rd prize Fruit juicer PANASONIC 25
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Promotion Campaign-Happy Anniversary
Prize structure Cash Prize Amount
1st prize 2,500,000 VND 5
2nd prize 500,000 VND 25
Agent prizes
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Promotion Campaign-Happy Anniversary
Drawing ceremony date
Customers Agents
2011/8/26 (Monthly meeting)
2011/8/25 (CRD meeting)
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Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
21
Adjustment of compensation scheme
In order to improve organization development,
company set up some tracing reward:
1. Agent: 5% FYC tracing bonus
2. Organization:
Mark: Tracing PFYP, number of people of the organization, training bonus
Sales unit:316620, Agency Branch office: 3250from March 2010 ~ March 2011
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Adjustment of compensation scheme
Some mother-units have low productivity after increasing a
sub-unit, But mother-units still could pass the assessment
by sub-unit tracing PFYP in tracing period:
1. Mother-unit is easy to lapse after tracing period2. This unit-increase could not lead our total PFYP↑
Sales Unit(SSM)PFYP: 20M
Mother-unit(SSM)PFYP: 0M
Sub-unitPFYP: 20M
Pass
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Adjustment of compensation scheme
1. Sales unit (All levels):
During the assessment and promotion period, the average monthly PFYP of the Sales Unit (exclude sub-unit tracing PFYP) shall reach 7 million
New standard of assessment and promotion
Mother-Unit(SSM)PFYP: 10M
Sub-UnitPFYP: 10M
Pass FailMother-Unit(SSM)PFYP: 0M
Sub-UnitPFYP: 20M
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Adjustment of compensation scheme
2. Agency Branch Office ( All levels):
During the assessment and promotion period, the average monthly PFYP of the Branch office (exclude sub-branch tracing PFYP) shall reach 100 million
3. Shorten assessment time of SM
Revise Semi-yearly assessment to quarterly assessment
Original: 1st & 7th working month
After revision: 1st, 4th, 7th, 10th working month
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Adjustment of compensation scheme
After revision, the first assessment time:
1. Sales unit:
2011.10th working month
Assessment period: 2011.7th ~9th working month
2. Agency Branch Office:
2012.1st working month
Assessment period 2011.7th ~13th working month
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Market news
Analysis of 2011 Q1 Market Situation
Promotion Campaign- Happy
Anniversary
Adjustment of compensation scheme
Planning project next month
Project this Month
27
New Product Design
Planning Project Next Month
WomanProductWomanProduct
Provide protection for female:Marriage, female disease, and saving Provide protection for female:Marriage, female disease, and saving
Critical Illness
Critical Illness
Provide Protection for critical illnessProvide Protection for critical illness
Endowment with cash
Endowment with cash
Provide different investment + protection choiceProvide different investment + protection choice