1 monthly report december, 2008 planning division sam lung 31 july. 2009

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MONTHLY REPORT DECEMBER, 2008MONTHLY REPORT DECEMBER, 2008

Planning DivisionPlanning Division

Sam LungSam Lung

31 July. 200931 July. 2009

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Agenda

Market News

Sales of Product

Work of this month

Project Report – the Modification

of Agency Regulation

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Market News

• Great Eastern Life Insurance launches two new product.

Dai an truong khang (life-time insurance) allows the dependent family member of the beneficiary to have a sufficient

life when the beneficiary had bad health situation from accidents.

Dai an dinh ky hang nam (annual fixed-term life )

insured age : 1~55 years old

insurance period : 12 or 15 years

benefit payment :3~5 6~8 9~12 or 15

5% 7.5% 10%

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Market News

• Manulife introduces new medical care products

Phuc An Binh offers guaranteed indemnity coverage for 10 major surgeries

suitable for people from 18-55 years old with a wide range of premium

benefit coverage from VND60-500 million per surgical treatment

guaranteed money-back option to a maximum of up to 50% of the premium paid, regardless of major surgical treatment claimed before

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Agenda

Market News

Sales of Product

Work of this month

Project Report – the Modification

of Agency Regulation

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Sales of Product(6~7 working month, policy in-force)

0

200

400

600

800

1000

C03 C04 A01 C05 C01 C02 C06 Total

6wkm

7wkm

38.5%38.5% 34.3%34.3% 18.8%18.8%

0500

1,0001,5002,0002,5003,0003,500

C03 C04 C05 A01 C01 C02 C06 Total

6wkm

7wkm

49.4%49.4% 31.9%31.9% 9.1%9.1%

Policy NumberPolicy Number

First PremiumFirst Premium (basic plan)(basic plan)

808808

936936

118118

Unit: milUnit: mil

2,7182,718

3,3083,308

548548

Main product: C03 &C04Main product: C03 &C04Keep observing C05Keep observing C05

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Agenda

Market News

Sales of Product

Work of this month

Project Report – the Modification

of Agency Regulation

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Plan of Product Design

Stop salesStop salesC01 and C02 are going to be stopped sailing from 7/31! C01 and C02 are going to be stopped sailing from 7/31!

New ProductNew Product-3 riders-3 riders

Medical：hospitalization and operation coverage when insured is sick or in accidentTerm ： lower premium for more coverageWaiver ：Without paying premiums when policy owner is dead or total disability

Medical：hospitalization and operation coverage when insured is sick or in accidentTerm ： lower premium for more coverageWaiver ：Without paying premiums when policy owner is dead or total disability

Plan to launch Plan to launch on on SeptemberSeptember

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Happy Kids, Lucky Draw

Qualified Customers

HCMC 89

HN 279

DN 89

Total 457

Drawing Date: Drawing Date: 7/317/31Drawing Location:Drawing Location:New Fortuna Hotel at HanoiNew Fortuna Hotel at Hanoi

The Winner is…………?The Winner is…………?

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Agenda

Market News

Sales of Product

Work of this month

Project Report – the Modification

of Agency Regulation

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the Modification of Agency Compensation Regulation

• 2 main Modifications

Adjust the rationality of salary between IA & AS

Incentive of SM promotion

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Unreasonable!!Unreasonable!!

PositionPerformance

Full-time Agent

SEAS EAS SAS AS

PersonalPerformance(%)

19.0 38.8 27.6 57.1

PerformanceTracing from IA(%)

81.0 61.2 72.4 42.9

Period:1~6wkm,2009Period:1~6wkm,2009

Some agents sale personally, but transfer the performance to the IA he recruits ON PURPOSE !!!

Some agents sale personally, but transfer the performance to the IA he recruits ON PURPOSE !!!

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3 main reasons:

Deferred payment of Sales Bonus

Agents can get 25% performance from the IA he recruits.

IA can get more money than Agents possibly?

Deferred paymentDeferred payment within several months within several months

One-time paymentOne-time paymentbut less money but less money

Full-timeFull-time Part-timePart-time

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Simulation of Sales bonus -previously

-

500

1,000

1,500

2,000

2,500

3,000

3,500

50 150 250 350 450 550 650 750

SAS

IA

Bonus (thousand)Bonus (thousand)

PFYP (thousand)PFYP (thousand)

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How to adjust?

Commission

Sales Bonus

Attendance BonusAttendance Bonus

Meeting-requirements Meeting-requirements Bonus Bonus

PerformancePerformance BonusBonus

SubsidySubsidy

Salary StructureSalary Structure

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Position CAS SEAS EAS SAS

Basic Score 8,400 5,600 3,500 2,450

Payment(thousand)

900 600 300 200

Standard Score 12,000 8,000 5,000 3,500

Payment(thousand)

1,200 800 500 300

Meeting-requirements Meeting-requirements Bonus Bonus

If the total scores of a working month below the Basic score corresponding to the official level, the Meeting-requirements Bonus will be paid 45 Dong per score.

How to adjust?

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Score CAS SEAS EAS SAS

0 0 0 0 0

1000 90 90 90 90

2000 110 110 100 90

2500 120 120 110 100

3000 130 130 130 110

3500 140 140 140 120

4000 150 150 150 130

5000 160 160 160

140

6000 170 170 170

7000 180 180

180

8000 190 180

10000 200 190

12000 200 200

14000 215

210

16000 230

20000 245

25000 260

30000 270

Score CAS SEAS EAS SAS

0 0 0 0 0

1000 90 90 90 90

2000 110 110 100 90

2500 120 120 110 100

3000 130 130 130 110

3500 140 140 140 120

4000 155 150 150 130

4500 165 165 150 145

5000 175 170 160 155

5500 175 170 165 165

6000 175 170 170 170

6500 175 175 175 175

7000 180 180 180 180

7500 185 185 185 185

8000 190 185 185 185

8500 190 190 190

190

9000 195 195 195

10000 200 200 200

11000 205 205 205

12000 210 210

210

14000 215 215

16000 230 230

20000 245

24025000 260

30000 270

Performance Bonus Performance Bonus

How to adjust?

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Simulation of Sales bonus – After adjust

-

500

1,000

1,500

2,000

2,500

3,000

3,500

50 150 250 350 450 550 650 750

SAS

IA

Bonus (thousand)Bonus (thousand)

PFYP (thousand)PFYP (thousand)

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• Also, we decrease the Performance Tracing percentage from 25%15%

Decrease the incentive to transfer the performance Encourage IA promote to AS

How to adjust?

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Experienced in other company Experienced in other company BreedBreed from Cathay from Cathay

2 Type of SM

Fixed financial support in the First year!

NO financial support

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• Both of 2 types SM have the same Financial Support !

• Adjust this Financial Support to be Efficiency !!

How to adjust?

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Quarter Q1 Q2 Q3 Q4

Amount 5M 4M 3M 2M

Q1&Q2

PFYP per working month

Amount

PFYP ＜ 15M 0

15M ≦ PFYP ＜ 20M 3M

20M ≦ PFYP ＜ 30M 4M

30M ≦ PFYP 5M

Q3&Q4

PFYP per working month

Amount

PFYP ＜ 20M 0

20M ≦ PFYP ＜ 25M 2M

25M ≦ PFYP ＜ 35M 3M

35M ≦ PFYP ＜ 45M 4M

45M ≦ PFYP 5M

How to adjust?

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Summary

• Our strategy of agent development

Encourage IA (part-time) promote to AS (full-time)Encourage IA (part-time) promote to AS (full-time)

Decrease the transfer of performanceDecrease the transfer of performance

Encourage Agent promote to SMEncourage Agent promote to SM

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PLANNING PROJECT NEXT MONTH

New Branch Establishment

New Product

2010 New Branch Plan

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