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Monthly report Planning Div.

Monthly report Planning Div.

Chiang, Chih Hsiang 2012.6.29Chiang, Chih

Hsiang 2012.6.29

Agenda

Agenda

Market News

SBV cuts deposit interest rate for term less than 12 month to 9% on 11 June.

No limit the maximum deposit interest rate

for 12 month to over 12 months terms

Bank HSBCStandard Chartered

BankACB IVB Sacombank

1 year 9.00% 9.00% 10.88% 9.00% 9.60%

Agenda

R01&R03 Sales review in 4th~6th working month

Rider Promotion

(*) ： R01 & R03 case / total case(**) ： R01 & R03 premium / total premium

Branch HCM HN DN CT Dnai HP Total

AttachedRate (*)

2012.6th 68.9% 41.3% 46.3% 15.9% 33.9% 56.0% 40.2%

2012.5th 61.1% 14.6% 26.9% 24.4% 26.0% 54.5% 29.3%

2012.4th 62.2% 5.0% 51.7% 11.9% 23.4% 66.7% 24.3%2011.10th ~

2012.3rd 55.0% 9.7% 45.3% 17.5% 28.7% 29.2% 24.7%

PremiumDistribution

(**)

2012.6th 3.1% 1.6% 2.0% 0.8% 1.3% 2.8% 1.8%

2012.5th 2.9% 0.8% 1.2% 1.0% 1.2% 2.9% 1.4%

2012.4th 2.4% 0.2% 2.2% 0.5% 1.1% 3.5% 1.2%

2011.10th ~ 2012.3rd 2.2% 0.4% 2.2% 0.7% 1.3% 1.3% 1.1%

Attached Rate increases about 11% in 6th wkm Premium Distribution increases 0.4% in 6th wkm HN has higher increase rate, but CT is too low

All Riders Sales review in 4th~6th working month

Rider Promotion

(*) ： rider case / total case(**) ： rider premium / total premium

Branch HCM HN DN CT Dnai HP Total

AttachedRate (*)

2012.6th 82.1% 63.1% 58.5% 23.2% 49.0% 80.0% 55.8%

2012.5th 77.8% 47.4% 36.5% 26.8% 47.5% 63.6% 49.8%

2012.4th 77.8% 36.7% 79.3% 13.4% 47.7% 81.0% 46.8%

2011.10th ~ 2012.3rd 66.5% 36.7% 65.7% 24.4% 44.3% 46.6% 43.1%

PremiumDistribution

(**)

2012.6th 6.4% 3.1% 5.8% 1.4% 3.4% 8.2% 4.0%

2012.5th 6.1% 3.6% 3.8% 1.1% 3.8% 7.7% 4.1%2012.4th 6.0% 2.2% 5.8% 0.7% 3.7% 7.4% 3.6%

2011.10th ~ 2012.3rd 5.2% 3.2% 7.3% 1.8% 3.7% 5.3% 3.9%

Attached Rate of 6th wkm increases 6% in 6th wkm HCM and HP have the higher Rider Attached rate

RIDER PROMOTION CONTINUE

Time: 14/6~5/9/2012 (2012.Q3:7th~9th wkm)

Product: R01 & R03

Content:FYP x 2.5FYC x 1.2

Rider Promotion

Agenda

Insurance Operational Process

System Thinking

Customer

Agent Investment

BenefitPaymentSatisfaction

More Customers

How did Taiwan do?

Historical experience: Taiwan

High Interest Rate

High Pricing RateHigh Dividend

Endowment 、 Education 、 Cash

Loss of Interest Rate

Lin-Yuan Group ( 霖園集團 )

The Wealth Comes From Land Only Rent, No Sell High Rental Income: 1.5 Billion USD one year High Assets Increase: 1979: 0.5 Billion USD 2004: 74.3 Billion USD (Increase 8 Million USD one day)

Our Old Chairman蔡萬霖 (Tsai Wan-Lin)

Soy sauce

Taiwan: 1980~2000

High Pricing RateHigh Dividend

Invest Real Estate

High Rental IncomeHigh Assets Increase

Endowment

How did the United States do?

Historical experience: U.S.

1973: 1st Oil crisis1975: Fail in Vietnam War1979: 2st Oil crisis

Stagflation = Stagnation + Inflation

Fed raised interest rates1979: 11% 1981: 20.0% 1982: 21.5%

Many people surrender their insurance policies. A lot of cash outflow from the insurance companies Many insurance companies go bankrupt

Solution: Universal Insurance

United States : 1980~1990

Universal

High DeclaredInterest Rate

Low Policy FeeHigh government

bond yield

High Interest

Historical experience: U.S.

Economic recoveryInterest Rate decrease

Stocks, Corporate bonds, Mutual fund have high profit Again, cash outflow form the insurance companies

Solution: Unit-linked insurance

Government is not the solution to our problems, Government is the problem. Laissez-faire

From French laissez faire (“leave it be", "let do”)

United States : 1990~2000

Unit-linked

Investment Options

Low Policy FeeStrong Economic

Situation

High Profit

Product Strategies

ProductMain

CompetitionStrategy Success Factors

Endowment BankHigh Pricing Rate

High Dividend

Invest the assets that can increase

value for long-term

Universal BankHigh Declared Interest Rate

Low Policy FeeHigh government

bond yield

Unit-linked Mutual Fund

Investment OptionsLow Policy Fee

Strong economic situation

How can we do in Vietnam?

Product Strategies

Product Problems

Endowment Legal restrictions on real estate investment The term of government bond is short

Universal Government bond yield is lower Agent commission is higher

Unit-linked Rare Investment Targets in Vietnam

Making investment return higher than deposit interest rate is hard in Vietnam

How can we do in Vietnam?

High investment return is hard

High insurance benefit is easier

Safety for your life

Building Cathay's Brand

Make the Differential Product Design Enhance the Agent Profession Improve the Service System

Agenda

Project Next Month

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