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%
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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
Analysis of promotion
product
Analysis of surrender
policy
Southeastern Asia
insurance market
Engaged Project This Month
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
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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
Exciting Summer -C05 、 C06 、 C07
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
13WM 1WM 2WM 3WM 4WM 5WM
-
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
13WM 1WM 2WM 3WM 4WM 5WM
Grand Total C05 C06 C07 % of getting standard
Exciting Summer -C05 、 C06 、 C07
Unit: Number of Policy
26.9%40.6%
* FP standard : C05 and C06 are 3.5M , C07 is 5M
No. of Policy reach the standard
14
Exciting Summer -C05 、 C06 、 C07
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
Analysis of promotion
product
Analysis of surrender
policy
Southeastern Asia
insurance market
Engaged Project This Month
16
5
49
111
3
25
109
00
40
80
120
Edu Endow Endow Whole Term
HCM HN
Surrender Policy
Unit: Number of Policy
17
Surrender Policy
56
2
133
12
0
50
100
150
0~1 1~2
HCM HN
Unit: Number of Policy
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.
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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
Analysis of promotion
product
Analysis of surrender
policy
Southeastern Asia
insurance market
Engaged Project This Month
21
Southeastern Asia Insurance Market
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
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Southeastern Asia Insurance Market
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%
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Southeastern Asia Insurance Market
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)
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Southeastern Asia Insurance Market
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
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New Product
GA model research
Review Agent System
Review product
Promotion
and marketing activity
Planning Project Next Month