Anthony Perkins Director Business Systems – Insurance Services HSBC Technology & Services

1. Anthony Perkins Director Business Systems – Insurance Services HSBC Technology & Services

2. The HSBC Group • Who we are The HSBC Group is one of the largest banking and financial services organizations in the world, with well established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. • Head office HSBC Holdings plc is incorporated in England, with its head office in London. • International brand The establishment in 1999 of HSBC as a uniform, international brand name ensured that the Group’s corporate symbol has become an increasingly familiar sight across the world. HSBC differentiates its brand from those of its competitors by describing the unique characteristics which distinguish HSBC, summarized by the words ‘The world’s local bank’. • Assets US$1,502 billion, an increase of US$222 billion, or 17 per cent, • since 31 December 2004 • Profit (pre-tax) US$20.9666 billion, an increase of US$2.023 billion, or 11 per cent, over 2004. • Capital strength Tier 1 capital ratio: 9.0% & Total capital ratio: 12.8% • International reach Over 9,700 offices worldwide. • Staff More than 260,000 employees in 77 countries and territories. • Customers More than 110 million worldwide, with a total e-customer base of • over 20 million.

3. HSBC’s largest and best-known subsidiaries

4. HSBC Technology Facts • HTS – HSBC Technology Services • Centers of Excellence • Domain Owners • HSBC is a major user of advanced technology • 20,000+ IT staff all over the world • $3.8 billion USD annual technology spend in 2005 • HSBC maintains its own private telecommunications network – one of the world’s largest – to deliver IT services to customers and staff globally • HSBC’s web sites attracted more than 600 million visits in the first 6 months of 2005 • e-Channel includes Internet, PC banking & Telephone Banking versus fixed and mobile phones

5. Technology Challenges/Opportunitiesof a Global Organization • Challenges in integrating a woven web of diverse architecturally different legacy/point systems • use of “Group” systems • R2 standards and reuse strategy • control and standards over architectural diversification • Global standards across diverse markets and products (e.g. HUB) • wide array of compliance and regulatory rules • cultural differences, e.g. Sharia Islamic law • Focus on Global standards & Integration sometimes overshadows business needs • Reuse strategy lowers development cost, hasten delivery times and facilitate global integration • Global initiatives on common regulatory requirements, e.g. Basel II, Anti Money Laundering, Anti Terrorist, and SOX

6. Insurance in HSBC • Globally, HSBC offers a wide array of Personal & Commercial Insurance Products: • P&C • Life • Health • Accident • Income Protection • Credit • Education • Travel • Office Insurance • Golfer’s Insurance • Helper (Domestic Helper) Insurance • Etc.

7. HSBC Group Insurance – Global Presence Business Type Countries and territories Life Insurance Underwriting Argentina, Brazil, Canada, France, Hong Kong, Ireland, Malta, Mexico, Singapore, United Kingdom, United States Life Re-insurance Underwriting Cayman Islands, Ireland, Singapore, United States Non-Life Underwriting Argentina, France, Hong Kong, Ireland, Macao, Mexico, Singapore, United Kingdom, United States Non-Life Re-insurance Underwriting Guernsey, Ireland, United States Takaful Saudi Arabia, Malaysia Medical Insurance Underwriting Hong Kong Insurance Broking Bermuda, Cyprus, Hong Kong, India, Korea, Middle East, Philippines, Singapore, Taiwan, United Kingdom Pensions/ Actuarial Consultancy Middle East, United Kingdom Pensions Administration Argentina, Brazil, Hong Kong, Isle of Man, Mexico, United Kingdom Agency Australia, Brazil, Brunei, Canada, Czech Republic, Egypt, France, Hong Kong, Hungary, Indonesia, Malaysia, Malta, New Zealand, Pakistan, Panama, Philippines, Saudi Arabia, Sri Lanka, Switzerland, Thailand, Turkey, United Kingdom, United States, Vietnam Captive Insurance Guernsey Captive Management Bermuda, Cayman Islands, Guernsey

8. HSBC Group Insurance – Global Business Europe Asia Pacific North America South America Total Premiums 8,453 3,362 2,081 1,069 14,965 Revenues 3,155 Attributable Profit 755 410 334 182 1,681 US$ m US$ m US$ m US$ m US$ m Policies - Personal 5,047,814 1,771,979 11,252,114 4,693,144 22,765,051 Policies Commercial 51,934 87,799 5,118 144,851 In 2005, Insurance accounted for 11.15% of HSBC Group's Attributable Profit

9. Insurance in HSBC, North American Strategy • Execute flawlessly on the cornerstone of our business • Rebuild a sustainable business model around e-commerce, telesales • Build a reinsurance business complementary to other HSBC customer groups • Continuous improvement in everything we do – faster, better, cheaper • Develop/enhance product solutions for all Bank customer groups • Create a nationwide agency sales force offering a wide variety of insurance

10. Insurance in HSBC, North American Distribution Channels • Bank Branches • Personal Financial Services • Commercial Banking • Consumer Lending • Credit Card Services • Auto Finance • Mortgage Services • Securities Brokerage • Private Banking • Direct – Internet • Retail Services • Taxpayer Financial Services • Agency

11. HTS (HSBC Technology Services) Challenges • Varied customer segments – • different affordability levels, • different objectives/needs • diversified insurance product basket for different customer segment/needs • Relationship based selling across a wide spectrum of businesses - cross selling to all product lines customers • Multi-channel desktop (underway) • Optimization & cost efficiency of back office • Global Data Warehouse to support customer demographics and propensity analytics (data driven approach to selling) • Differentiated Customer experience • IPortal initiative – componentization and reuse of common functionality • Personalization through any channel • Self service selling – KIOSK • Carrier Integration • Online applications for Life Insurance

12. Our Insurance Agency Distribution Strategy • Leverage on 48 million Household customers • Direct-to-consumer distribution channel • Broad range of Life & Health insurance products • Needs-based, consultative selling strategy • Establish joint marketing partnership with a best in class, well recognized, trusted top manufacturer and national distributor • HSBC card carrying agents • HSBC branded product brochures

13. Why E-Z Data • Comprehensive Agency Management System • Support Life insurance • Robust commission module • Case Management • CRM & Marketing functions • Built-in Reporting functionality • Architecture • Shared environment model – quick implementation for a pilot

14. HSBC and E-Z Data Implementation– Fast Forward • Appointment Manager supporting appointment scheduling through self service KIOSK • Robust Commission requirements to support different commission models from different business lines • Smart Integrator to ease integration with other Bank Systems. • EZ-Data, a potential component in the IPortal • Varied EZ-Data implementation to support different lines of businesses • Facilitate carrier integration • Enforce compliance requirements

15. Summary • Leverage on business partners: • Similar culture • Results-driven orientation • Robust technology that fits your architecture • E-Z Data and AIG, partners we feel positive about