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MONTHLY REPORT Jan, 2010. Planning Division Howard Wang 29th Jan. 2010. ENGAGED PROJECT THIS MONTH. Market Information Updated Progress Report-New Branch Premium Discount Project. Fubon Life Insurance. Market Info.
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MONTHLY REPORT Jan, 2010 Planning Division Howard Wang 29th Jan. 2010
ENGAGED PROJECT THIS MONTH • Market Information Updated • Progress Report-New Branch • Premium Discount Project
Fubon Life Insurance Market Info The board of Fubon Life Insurance Co. approved a proposal to set up a life insurance operation in Vietnam. Fubon Financial said the life insurer’s board had authorized to negotiate terms and proceed with the planned new subsidiary in Vietnam within a maxium funding of NT$1.3 billion (US$40 million). Following the acquisition of ING Antai Life Insurance Co. in June, Fubon Life Insurance has become the Taiwan’s second-largest life insurer by gross premium after Cathay Life Insurance Co.
Fubon Life Insurance Market Info Fubon Life Assurance Co. Ltd. has been approved by the Financial Supervisory Commission, Taiwan’s regulator, to set up a new branch in Vietnam. The life insurer’s Vietnam operation will be based in Hanoi and will set up a branch in Ho Chi Minh City, according to the FSC. Fubon Life Insurance’s strategyof sales channel will be Bancassurance.
Insurers look to cheaper products Market Info The head of the Ministry of Finance’s Insurance Administration and Supervision Department has called on life insurance companies to develop micro-insurance and other products to better tap the market and ensure growth this year. The ministry has set a life-insurance premium target of VND12.85 trillion (US$710 million) for this year, up more than 12 per cent from 2009.
Insurers look to cheaper products Market Info Manulife Viet Nam launched micro-insurance products last September with monthly premium of VND30,000, targeting people in rural areas. Developing a new product (A05) Viet Nam, with a population of more than 85 million, is a promising market for life insurance products since just 5 per cent of the people have insurance now. With a large portion of the population – more than 60 million – living in rural areas, micro-insurance (whose feature is low premium) will appeal to people with low incomes.
Market Info Dai-ichi Life Insurance Relation Pay Premium Collect Premium
Dong Nai 芹苴 Can Tho New Branch Progress Report - New Branch Having submitted the official letter about operating new branch-Dong Nai-to MoF. Expecting to open this new branch on April 2010
Premium Discount Premium Discount Project To encourage clients to pay the premium on time Purpose To improve company’s collecting efficiency
“Pay on time” means “pay the premium in 30 days after next payment day” Premium Discount Premium Discount Project Competitors Pay the premium on time not through Collector Channel Premium Discount is Fixed Amount from 3,000 to 40,000 VND (Like Prudential, Manulife)
Premium Discount Premium Discount Project Cathay Pay the renewal premium on time Participants Payment Channels 1.Clients 2.Employees 1.Auto Paid from Bank Account 2.Direct Deduction from Employee’s Salary
Premium Discount Premium Discount Project Percentage of Total Premium M = Million VND Discount Premium = premium payable at due day % of discount
Premium Discount Premium Discount Project Example: 35 years old male A01 (10 years, Sum assured = 160 Million) R01 (Sum assured = 800 Million) Premium payable at due date = 7,760,000 + 1,560,000 = 9,320,000 VND
Premium Discount Premium Discount Project Total Annual Premium = 7,760,000 + 1,560,000 = 9,320,000 VND Client pays premium on time 1.Payment Channel: Auto Paid form Bank Account 2.Total Annual Premium≥ 7.5 Million Discount Premium = 9,320,0000.4% =37,280 VND Premium (client needs to pay) = 9,320,000 – 37,000 = 9,283,000 VND
Premium Discount Premium Discount Project Total Annual Premium = 7,760,000 + 1,560,000 = 9,320,000 VND Employee pays premium on time 1.Payment Channel: Direct Deduction from his Salary 2.Total Annual Premium≥ 7.5 Million Discount Premium = 9,320,0000.7% =65,240 VND Premium (employee needs to pay) = 9,320,000 – 65,000 = 9,255,000 VND
Having submitted the official letter about Premium Discount Plan to MoF. Expecting to launch this new regulation on March 2010 Premium Discount Premium Discount Project Percentage of Total Premium Advantages: 1.Increase total premium of each policy 2.Lead payment mode to become annual payment
PLANNING PROJECT NEXT MONTH • Developing New Products • 2010 Q2 Promotion Campaign