Reporter : Agency Planning Dept. Stanley Chao 28.08.2009

ReporterReporter:: Agency Planning Dept.Agency Planning Dept. Stanley ChaoStanley Chao 28.08.200928.08.2009

Agenda

1

AA Performance

BB Plan for Bancassurance

CCOrganization strategy Review & Revision

Performance

Premium & PFYP

8th WKM 2009(1~8)

Prem PFYP Prem PFYP

ViteNam 3.63.0

(72%)28.4

20.2(79%)

( ) is percentage of Vietnamese Target

2

Billion

3

Performance

3 Region PFYP

100

600

1100

1600

07 08 09 10 11 12 13 01 02 03 04 05 06 07 08

HN

HCM

DN

1.91.9

1.71.7

0.40.4

1.11.1

0.80.8

Performance

Headcount

SM Full-Time agentsTotal

Pre-BM SM SEAS EAS SASAS

Viet-Nam 57 110 15 78 153 932

1345

Part-Time agents(IA): 2572 Total Agents: 39173917

4

167 SM 246 SAS↑+

5

Performance

3 Region Headcount(full-time)

0

200

400

600

07 08 09 10 11 12 13 01 02 03 04 05 06 07 08

HN

HCM

DN

765765

334334328328

167167

6

Performance

AS attaining Quota(%)

20%

40%

60%

08 09 10 11 12 13 01 02 03 04 05 06 07 08

HCM

DN

HN

54%54%

41%41% 39%39%

34%34%

30%30%28%28%

Agenda

7

AA Performance

BB Plan for Bancassurance

CCOrganization strategy Review & Revision

8

Plan for Bancassurance

Marketing DivisonMarketing Divison

Agency PlanningAgency Planning Agency AdministrationAgency Administration TrainingTraining PRPR

Support

Negotiate with BankMother Company support 1 experience staff& Trainer:Ho Trung Kien transfer to agency planning dept.Training For Bank staff

Planning & Analysis Agency Planning support

9

Plan for Bancassurance

14.09.2009Start

Cooperation BankIVB & Vietin (planning)

ProductShort-term & mortgage ins.

Market ShareEurope-70% ； Taiwan-55%

Agenda

10

AA Performance

BB Plan for Bancassurance

CCOrganization strategy Review & Revision

Organization Strategy

11

2008-07

Strategy Planning Open & running

2009-08

IA

AS

Organization Strategy

12

Vietnamese insurance market Cathaylife

SM

BM

Agent(IA)

SM

BM

Part-time

Full-timeCAS/SEAS/

EAS/SAS/ASrecruit Introduce & recruitment

bonus

Apply higher salary for full-time agents ( financail support/recruitment bonus/training allowance…)

Training agents well professional & good service

ExpericenceFinancial support

AS resignation rate↑↑

Empty Headcount Poor SM(experiecn

e)

Performance

13

Problem 1

Problem 2

Problem 3

Organization Strategy

14

Problem 1- Poor Pre-BM/SM(experience) performance

Lots of SM/Pre-BM resign Lots of SM/Pre-BM resign

During 2008 recruit 138 SM & Pre-BM 2009.08, remain 52 (37%) → after end financial support, remain ??? →lots of SM/Pre-BM are new (always pay higher financial support) SM: 5M 4M 3M 2M ; Pre-BM: 8M 7M 6M 5M

During 2008 recruit 138 SM & Pre-BM 2009.08, remain 52 (37%) → after end financial support, remain ??? →lots of SM/Pre-BM are new (always pay higher financial support) SM: 5M 4M 3M 2M ; Pre-BM: 8M 7M 6M 5M

SM/Pre-BM don’t sell policySM/Pre-BM don’t sell policy

Only 35% SM/Pre-BM sell policy ( include IA policy)

→ How managers teach their agents??Only 35% SM/Pre-BM sell policy ( include IA policy)

→ How managers teach their agents??

No performance ,we still pay Financial support

Organization Strategy

AS & IA make moneyAS get more (recruit benefit)

15

Problem 2- Empty Headcount

TheoryTheoryCompany & AS & IA

WinHave 2 case

AS IA

AS sell 1 policyIA sell 1 policy

1 case 1 case

CCurrentntEmpty-Headcount2 agents→1 agent

Just 1 case

AS

AS sell 1 policy butIA submit and

return bonus to AS

AS:1 case

AS get moreBut IA get 0

IA

1. Who need to be responsible for policy ??2. Renewal premium bonus when IA terminate??

Brother/sister

Parents

Wife/husband

Organization Strategy

Organization Strategy

16

Problem 3- AS resignation rate↑

Only 9% AS still be full-time after 1 year

How can be professional and service well

SEAS↑ orSM ↑

07/2008 03/2009

Total recruit 12691269 AS Effective:243 (19%)

07/2009

648 AS didn’t sell any policy

WasteTraining

allowance 1M

Recruit7th month

23%23%13th month

9%9%

17

Organization Strategy

18

New Rule•Probation period for experience SM

•SM Financial support is related

to performance →EX: <15M:0 15M~20M:3M

20M~30M:4M >=30M:5M

→during 2 month attain 15M PFYP and 2 AS

•SM from AS also can get financial support →Same as above

Organization Strategy

19

New Rule•Reduce Pre-BM financial support and higher assessment

•Ask SM/Pre-BM sell policy →warning letter/meeting/can not promote

→8M,7M,6M,6M 6M,4.5M,3M,1.5M

Organization Strategy

20

讓顧客達到滿足

能夠將商品做搭配協調

Revise

Management

ReviseCompensation

Cancel AS position

•New AS delay to register→cancel training allowance•Roll-Call strictly →absentance↑,demote to IA

Agents’ new rule

•Higher AS salary and reduce recruit benefit•Revise AS promotion & assessment rule →excludes IA performance

•All agents starting from IA IA (AS)→ SAS → EAS →…. (don’t pay training allowance →move to others)

×01-2010

08~13/2009

07~08/2009

Organization Strategy

Conclusion

Low performanceLow performanceHigh perfomanceHigh perfomance

performanceperformance

ResourceRe-AssignResourceRe-Assign

All agents get same salary

All agents get same salary

promotionpromotion

Demote/terminateDemote/terminate

21

Before 07-2009 After 08-2009

Higher performance get higher salary

Higher performance get higher salary

SalarySalary

HighHigh

LowLow