MDRT - New Europe C-Level Exec Bus Dev Strategy

Venice to Vladivostok: MDRT Europe’s

membership and Annual Meeting registration

growth drive

Matteo Pederzoli, Europe Regional Director,

MCI Client Director

MDRT is:

• Independent — Members represent 496 companies worldwide. • Membership comprises all distribution system types, industry careers and education levels.

• Member-driven and member-oriented

• Global — ~40,000 members in 81 countries

• The Premier Association of Life

Insurance and Financial Product Agents

• Top 10 membership includes top 5% of the market producers

in USA, China, Japan, India, Canada and Europe.

MDRT facts & figures (2005)• Average commission earnings

– Industry: EUR 38,050 – MDRT members: EUR 135,854 – Court of the Table: EUR 163,570 – Top of the Table: EUR 536,896

• Average premiums: EUR 299,133

• Average number of cases written – Industry: 45– MDRT members: 188– Court of the Table: 205

– Top of the Table: 363

Source: LIMRA

MDRT qualification requirements• Qualification by Commission or Premium -

new business only.• Set independently for each country - and

indexed per purchase price of goods (World Bank PPP).

• Categorized per production level (Court of the Table, Top of the Table).

• Expressed in local currency.• Based on unlimited and/or limited credit.

According to Nobel Prizewinning playwright, essayist,

and critic George Bernard Shaw, "Ifyou have an apple and I have

anapple and we exchange theseapples then you and I will stilleach have one apple.

But if you have an idea and Ihave an idea and we exchangethese ideas, then each of us

willhave two ideas."

Underlying principle

Sales ideas are“MDRT Europe Inc’s” currency AND shares

MDRT Europe Value Unit

1 member = 1 sales idea /1 marketing idea /1 (best) practice management idea

Prestige Professional Growth

Personal Growth

Productivity

Value pillars

Education/Knowledge

Ethics Service

One-sentence MDRT Europe mandate

To develop MDRT by liaising with insurance companies’ CEOs and Sales Directors.

Membership Growth Europe – MDRTMatteo Pederzoli, European Regional DirectorBuilt and implemented a European c-level executive business strategy to increase membership, Annual Meeting attendance, and brand awareness in Central and Southeastern Europe. Membership and Annual Meeting attendance grew by 20% and 33% respectively in 2007.

Pre-history/Dimlights• Province of Asia• Dirigiste approach (top-down only with no

bottoms up and/or grassroots) • Top Of Table Tour (TOT) ephemeral carnival • Disney vs. productivity/math is not opinion Value

Proposition• No knocking on companies doors• Membership impasse• CR mandate with no PR/marketing &

communications support• Blanket solution over language barriers• Client at turning point going to point of no return

Roadmap to solution

Interest

Industry Component Cube

Map membership according to 3 categories

Find critical mass Create unique

benefitsGeographical region

MDRT Europe’s roadmap

Iceland to Israel; Azores to the Urals

DSF

Life Insurance and related products

A sales-idea-based…MDRT Membership = HigherProductivity = MDRT Membership

Value Proposition…whereby partnering with MDRT means:• A more productive and profitable

sales organization• A more knowledgeable organization• A motivated and inspired sales force • A staff culture that fosters success• A positive reputation in the industry

Dottiest? Where can we grow?

MDRT’s critical mass

“New” Europe:– More favorable view toward USA/low or non-

existent counter-Americanism– Grasp for economic improvement– Declining welfare system and birthrates

Population

Age M

DR

T

MD

RT

Strategic redirecting

MDRT

Change of perception

MDRT’sEurope

2006-08 Action Plan (Equation)

Corporate Relations+ Member Activities

+ Local Languages

=

Increased Membership+Increased Annual Meeting Participation

(with increased brand awareness and stronger brand equity as side organizational benefits)

Membership Development Strategy Chart

Central, Southeastern Europe and Russia

Croatia

Hungary

Slovakia

Lithuania

Poland

RussiaRomania

Slovenia

Serbia

Ukraine

Cyprus IsraelFrance

SpainTurkey

Italy

Portugal

Luxembourg

Ireland

Netherlands

United Kingdom

Northwestern Europe

Belgium Germany

Greece

Czech Rep.

Bulgaria

Mediterranean

MDRT Europe Corporate Relations Strategy Chart

MDRT liaising 1Company's present

COUNTRY/MARKET (CSEE & CIS)(listed in order of market size per total life premiums)

Action legend:

Pol

and

Ukr

ain

e

Se

rbia

&

M

onte

neg

roL

atvi

a

Gre

ece

Hun

garyGRO UPS [TO P 300/listed in

order of reg. market position]Source: www.theinsurer.net C

zech

Rep

ubl

ic

2 3 4

Rom

ania

Cro

atia

Cyp

rus

Lit

huan

ia

Est

onia

Bul

gari

a

Met producersMDRT met co. execs. Has members

Tur

key

Slov

akia

Ru

ssia

Slov

eniaMDRT

penetration rate (action/presence)

42%66%41%31%59%93%

6%21%

0%10%

0%58%10%

0%10%10%

0%0%0%

0%8%

50%50%

0%0%0%

25%50%75% Brokernet

75%100%

25%38%50% Halyk Life

50% HSBC

25%25%

36%

AverageMDRT co.penetration

Subregionalmarket division

COMPANY & MARKET 5% 0%14% 0% 16% 31%10% 50% 4% 68%25% 45% 19% 54%48% 43%

Eureko

Eurolife (EFG)

IBG

46%

PZU

ING

Generali/Ceska Pojistovna (PPF)

Pol

and

Allianz

AIG

AVIVA

Vienna Insur. Group (VIG)

Aegon

KBC

Uniqa

Triglav

Hansa

Société Générale

AXA

Groupama

Cardif

Oranta

Seesam

Royal & SunAlliance

QBE

Alfastrakhovanie

Acibadem

Europisti

Ethniki

Ingosstrakh LMT

Talanx

SEB

Sampo

Fortis

GraWe

ERGO

Ukr

ain

e

Se

rbia

&

M

onte

neg

roL

atvi

a

Gre

ece

Hun

garyGRO UPS [TO P 300/listed in

order of reg. market position]Source: www.theinsurer.net C

zech

Rep

ubl

ic

Rom

ania

Cro

atia

Cyp

rus

Lit

huan

ia

Est

onia

Bul

gari

a

Central Europe

EasternEurope

Central Europe

EasternEurope

EasternEurope

EasternEurope

EasternEurope

EasternEurope

Central Europe

Central Europe

Central Europe

Central Europe

Mediterranean

Mediterranean

Mediterranean

EasternEurope

Russia

Tur

key

Slov

akia

Ru

ssia

Slov

enia

Currently has no

Currently has no Direct Sales Force (DSF).

OTHERS - CSEE & CIS not listed bytheinsurer.net

MDRMDR

• MDRT Ambassadorship: At own expense, a company requests one or more MDRT member/s and/or staff to address an audience made up by sales force and/or sales management at a company event.

• MDRT Sales Ideas Seminar: An MDRT Volunteer Leader and/or staff invites one or more companies to endorse an MDRT event at the company’s expense.

• MDRT Day/s: Driven by one or more MDRT Volunteer Leaders and involving participation & financial support of producers (sellers) from a minimum of two companies.

Dear Company Executive, …you could also consider having an MDRT speaker address your

top sales force and management and/or organizing a practical &

transferable MDRT Sales Ideas Seminar …here follows a sample session

sequence/schedule (minutes based on simultaneous interpretation):

1.MDRT Value Proposition (toward increased sales force productivity) - 45 minutes

2.How To Sell (focus on selling techniques) - 60 min.3.Effective time management (how to increase activity volume) -

60 min.4.Sales Ideas ("open the relationship, do not close the deal") - 60

min.5.Questions & Answers - 45 min. tot.?

…as long as we plan ahead speaker availability-wise, no speaker fees would apply; we

would ask you to cover only the cost of our travel and accommodation.

Note: This document is complementary to the Strategy Chart and includes only the companies that have financed [up to 100%] the meetings with MDRT Europe.

* denotes conservative cost estimations based on documentation and post-event cost projections.

FY Q Company MDRT representatives Quantifiable VIK/description Total amount (EUR)

Also at host-company expense

2006 04 Company 1 Dinos Kyriakou, Cristina Poenaru, Moshe Hadari and MatteoFlights and rooms* 1,616.52 Board and transfers

2006 04 Company 2 Matteo Room 284.00 Board and transfers

2007 01 Company 3 Dinos, Moshe, Orsolya Pozsonyi and Matteo Flights and rooms 1,929.31 Board and transfers

2007 01 Company 4 Moshe and Matteo Moshe's flight and rooms 1,791.65 Board and transfers

2007 01 Company 5 Dinos, Moshe, Helen Jenkins and Matteo Flights and rooms* 2,011.49 Board and transfers

2007 01 Company 6 Caroline, Dinos, Moshe, Greg Pogonowski and MatteoFlights and rooms* 3,801.36 Board and transfers

2007 02 Company 7 Dinos, Moshe, Cristina and Matteo Flights and rooms* 3,062.18 Board and transfers

2007 02 Company 8 Brian Burlacoff & Mark Coutts Flights and rooms* 4,185.66 Board and transfers

2007 02 Company 9 Brian Burlacoff, Mark Coutts and Matteo Flights and rooms* 6,408.67 Board and transfers

2007 03 Company 10 Dinos, Moshe, Jim Barry and Matteo Flights and rooms 2,714.13 Board and transfers

2007 03 Company 11 Dinos, Moshe and Matteo Rooms* 686.70 Board and transfers

2007 03 Company 12 Moshe Flights and rooms 1,000.00 Board and transfers

2007 04 Company 13 Moshe and Matteo Flights and rooms* 1661.23 Board and transfers

2007 04 Company 14 Dinos, Moshe, Sandro and Matteo Flights and rooms* 3,187.20 Board and transfers

2007 04 Company 15 Moshe, Smiljan, Gülhat Tekçe and Matteo Flights and rooms* 4,432.50 Board and transfers

2007 04 Company 16 Sandro, Orsolya and Matteo Flights and rooms 776.06 Board and transfers

2008 01 Company 17 Sandro, Gülhat, Anthony Morris and Matteo Flights and rooms* 1,525.41 Board and transfers

2008 01 Company 18 Matteo Flights and room 339.00 Board and transfers

2008 01 Company 19 Lee Clarke Flights and room 1,500.00 Board and transfers

2008 01 Company 20 Moshe and MatteoFlights, room and onsite transfers 1,409.60

Board and airport transfers

2008 01 Company 21 Moshe and Matteo Flights and rooms 1,104.14 Board and transfers

2008 01 Company 22 Dinos, Sandro and Chris Leach Flights and rooms* 2,405.37 Board and transfers

2008 01 Company 23 Moshe and Matteo Flights and rooms 1,172.36 Board and transfers

2008 01 Company 24 Sandro and Matteo Flights and rooms* 1,371.19 Board and transfers

2008 01 Company 25 Matteo Flights and room 436.29 Board and transfers

2008 01 Company 26 Moshe and Matteo Rooms and flights 1,809.14 Board and transfers

2008 01 Company 27 Dinos, Moshe, Sandro and Matteo Flights (Sandro and Dinos) and room 2,237.41 Board and transfers


2008 02 Company 29 Sandro, Helen and Matteo Flights and rooms* 2,811.51 Board and transfers

2008 02 Company 30 Dinos, Moshe and Matteo Flights, rooms and visa invitations 8,915.15Board, transfers and Dinos's visa expenses


2008 03 Company 32 Dinos, Moshe, (Brian) Lee Allan and Matteo Flights and rooms* 6,023.67 Board and transfers

2008 03 Company 33 Matteo Flights, room and visa expenses 1,326.94Board, visa invitation and airport transfers

75,263.46

USD 112,895.19

Ambassadorships (2) at Commercial Union (Zygmunt Kostkiewicz, Piotr Czub, Tomasz Bartuzel and Managers) Executive meetings with AEGON, Allianz, AXA, ING, Pramerica, Premium Financial, PZU & Skandia

o Executive meetings with Alfa Strahovanie Life, AIG, Allianz, Aviva, Cheska Pojistovna, Ingosstrah LMT, Renaissance Life, o Amb’ship at Allianz o 2008 members (first from Allianz)/ AM attendees

o Executive meeting and MDRT sales idea seminar at PZU

o No. 1 MDRT Europe Country for membership/AM in 2008 o MDRT sales idea seminars at AXA, Pramerica and PZU

Amb’ships at Aviva (András Farkas) and Generali (Tibor Vegh; first members) MDRT sales idea seminar at ING (first member) Executive meetings with Allianz, ING o Exec

meetings with Brokernet and Groupama

o MDRT sales idea seminars at Aviva and INGo Exec meetings with AEGON, AIG, AXA and Union Pojistovnao First members/AM in 2008

Amb’ship at ING Executive meetings with Aviva, AXA and ING

Sample

One for all, all for one

Pre-history/Dimlights• Province of Asia• Dirigiste approach (top-down only with no

bottoms up and/or grassroots) • Top Of Table Tour (TOT) ephemeral carnival • Disney vs. productivity/math is not opinion Value

Proposition• No knocking on companies doors• Membership impasse• CR mandate with no PR/marketing &

communications support• Blanket solution over language barriers• Client at turning point going to point of no return

PR + CR

Press release

International Conference “Insurance in Central Asia” took place for the second time. On May 26-27, 2008 in Almaty, Kazakhstan, II International Conference “Insurance in Central Asia” was organized by Russian Polis Information Group (Russia) and Interconsult (Kazakhstan).

The conference was aimed at discussion of problems and prospects of insurance markets development, assistance in attraction of new technologies to the region, sharing experience and integration the local markets into a single market place. At the conference among the speakers were National regulators of Kazakhstan, Azerbaijan, Turkey, Armenia as well as CEO of Insurers’ Association of Uzbekistan, representatives of international organisations EurAsEC and IAIS, top managers of international and national companies of region countries, leading world experts. Key topics of the first day of the conference were titled “International developments and approaches to insurance regulation and support of national insurance markets” and “Interaction of national insurance markets with international marketplace”. The first speaker, deputy chairman of Financial Supervision Agency of Kazakhstan, Alina Aldambergen provided conference participants with an overview of the current state of the Kazakhstan insurance market. According to her, insurance remains one of the most profitable segments of the local financial market. In particular, profitability of assets in the insurance sector in 2007 constituted 31%, and of equity capital – 55%, against the profitability of bank assets and banking sector capital of 2.3% and 18.6% respectively. Later, the attention of conference participants was drawn to the prospects of national insurance markets development. Namig Khalilov, head of the State Insurance Supervision Department of Ministry of Finance of the Republic of Azerbaijan, told the audience about the latest legislative changes in his country. He viewed the separation of life and non-life business as well as elimination of restrictions for foreign insurers’ participation in the capital of resident companies as the most important innovations. The issue of attracting foreign investors to national markets was also tackled upon by a speaker from Uzbekistan. According to Miradyl Mirsadykov, general director of Insurance Market Association of Uzbekistan, currently not only foreign investors show their interest to the Uzbekistan insurance market, but also the local players as they see its good development dynamics as well as low loss-ratio of the sector. Murat Kayaci, section chief in the Directorate General of Insurance at Turkish Treasury, presented the Turkish insurance market, and representative of World Bank, Serap Gonulal shared her experience of creation and management of the Turkish Catastrophic Insurance Pool and contribution of World Bank in insurance market in Central Asia. Principal administrator of IAIS (International Association of Insurance Supervisors, Switzerland), Arup Chatterjee thoroughly provided the participants with recent international developments of insurance supervision. He noted that the growing integration of local markets with international financial

Head of division of Insurance Supervision of the Central Bank of the Republic of Armenia, Haik Sargsyan, noted that currently the Armenian insurance market and its controlling functions are being reformed. Application of single approaches and mechanisms of regulation of financial institutes is expected on the side of a single independent state authority. Elena Parfenenko, principal secretary of the Council of Heads of Insurance Supervisors and Regulators of the Eurasian Economic Community, addressed the market participants on experience in creating a united insurance market within the member states of EurAsEC. While discussing the interaction of national and world insurance markets, conference participants listened to speech of David Thomas, corporate director and principal ombudsman at the UK Financial Ombudsman Service. He talked on out-of-court resolution of financial disputes in the United Kingdom and the European Union. On the Kazakhstan side, information on development of institute of ombudsmen in Kazakhstan was presented by insurance ombudsman of the Republic of Kazakhstan, Vitaly Verevkin. Andrew Stammers, director of non-marine energy and construction at Cooper Gay broking group delivered presentation about challenges facing the energy insurance market in 2008. The second working day of the conference was devoted to insurance technologies, reinsurance of large risks and retail classes of insurance. Director of reinsurance at State Insurance Corporation for the Insurance of Export Credits and Investments (Kazakhstan), Kenzhegul Sembayeva, expressed the opinion that more active development of mutual insurance is necessary for reinsurance market development in Kazakhstan. Maksim Alyohin, head of Department of Industrial Insurance at Ingosstrakh (Russia), pointed at huge opportunities for integration of CIS insurers. “Our countries are similar in terms of economic and political governance, supervision and market principles. In addition, companies of our countries employ equal principles of business organisation, and in a number of cases it is simpler for us to find interrelations with CIS colleagues,” noted the speaker. Alexandre Bichot, chief area underwriter at Milli Re (Turkey), provided the overview of the FAIR Reinsurance Pool activity (FAIR - Federation of Afro-Asian Insurers & Reinsurers). The important goal of the pool is to improve reinsurance conditions for national companies from Afro-Asian region. The strategic idea of the pool is to find solutions in the region for more efficient geographic distribution of risks and organisation of mutual business development for the pool members. Chairman of the board of HalykLife (Kazakhstan), Yevgeny Yeremenko, spoke on advantages of the bancassurance channel for selling retail insurance products. As the speaker noted, for successful bancassurance business complete integration of insurance products into banking system is necessary, as well as decentralization of underwriting processes so that such products could have standard tariffs, enjoy low operational costs and high efficiency. Matteo Pederzoli, regional director at Million Dollar Round Table, a non-profit international organization for successful life and health insurance sellers (Million Dollar Round Table) presented a vivid guidance for building effective sales in insurance. The conference was over with awarding the event sponsors: strategic sponsor Kazkommerz Policy, general partner NSK, sponsors SCOR, State Insurance Corporation for the Insurance of Export Credits and Investments, Audatex, Ingosstrakh, Lemma, Amanat Insurance.

For additional information please call + 7 495 612-81-18, 7 495 612-10-93 in Moscow; +7 727 266 74 46, +7 727 273 00 16 in Kazakhstan or e-mail to [email protected], [email protected].

Membership of MDRT can play an important role in a company’s Corporate Social Responsibility program.Recently, MDRT was mentioned in AvivaSA Turkey’s report. Hanzade Aytaçlı, customer relations unit manager at AvivaSA, said that support for MDRT is a "sign of our investment in people".(http://www.associationhq.com/mdrt/newsletter/index.html#item8)



+ Local Languages

=



• MDRT Ambassadorship: At own expense, a company requests one or more MDRT member/s and/or staff to address an audience made up by sales force and/or sales management at a company event.

• MDRT Sales Ideas Seminar: An MDRT Volunteer Leader and/or staff invites one or more companies to endorse an MDRT event at the company’s expense.

• MDRT Day/s: Driven by one or more MDRT Volunteer Leaders and involving participation & financial support of producers (sellers) from a minimum of two companies.

All in all, the most important result of the MDRT Day is that it brought alive

the organisation to the Hungarian insurance companies. Being a member is now

an honour.

Key partners

Chambers of Commerce

National Organizations

Sister Organizations

Glocal triangular approach (PIPUiF)

Grassroots triangular approach (LIA, PSAS)

Same industry Geographic and

industry expertise



+ Local Languages

=



Product buyers vs. joiners

European eNewsletter

• Unique European communications/community building tool

• For European members and prospects • SIX languages—ENG, GRE, HUN, ITA, POL &

ROM.• Content from International MDRT news and

Europe-specific • Articles, community news, member

interviews/testimonials,• Research, etc.

Highlights• Members up by 20% YOY in 07 &

22%+ so far in 08• AM registrants up by 33% in 07 (42%

in 08)• Poland at no.1; UK no. 2 but reversed

trend• Quadrupled eNews distribution list

plan comes together!

I love when a

n Action Plan comes together!

• Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. Margaret Mead

• “Every man owes a part of his time and money to. the development of

the industry in which he is engaged.” Theodore Roosevelt

• Go East!

Applicable lessons

• Put your members to work …for themselves • Legacy teams work hard and have fun at what

they do!

MDRTEXPERIENCEIN EUROPE

Global & Regional Partnerships

Stretch of perception

Thank you!

Matteo Pederzoli (Marco Polo!)[email protected]

+32 495 616939

Economy & Finance

MDRT - New Europe C-Level Exec Bus Dev Strategy