It’s exciting because we’re thrilled to announce that Asia Advisers Network has launched our very own insurance podcast! Keeping our wonderful readers like you in mind, we uploaded training clips onto the free platform, SoundCloud. Whether you’re driving, commuting on the train, flexing in the gym or walking your dog, you can simply add these clips onto your existing playlist or just listen from our channel as long as you have data or Wi-Fi connection.
For starters, we uploaded 4 audio clips from Jensen Siaw International. But over time, every Friday, we’ll be uploading something fresh. So literally stay tuned to us, follow the playlist Jensen Siaw International HARDCORE TRAINING clips.
By Jensen Siaw:
- Achieve MDRT every year
- Discipline
By Joshua Luke:
- Body language
By Benjamin Ang:
- Building up your network
APAC Insurance industry proves to be most attractive globally but risks are high
According to Bain & Company’s latest Asia Pacific Insurance Report, the middle-class in Asia Pacific’s developing markets has continued to expand rapidly, and the demand for insurance in this region has exploded.
It is reported that throughout the region, especially in China, India, and part of Southeast Asia, household wealth is growing, leading to the expansion of the middle class. Within the region, total household wealth is set to outstrip North America’s by 2023 with the number of middle-class households topping 109 million in China and 83 million in India. This growth has contributed to increased spending power within the region, both on necessities like food and shelter, as well as on discretionary items.
However, while disposable income and other sociodemographic shifts are driving up insurance needs, coverage remains low. Consumers in Asia-Paci?c’s developing markets are signi?cantly underinsured. Penetration currently is less than 5 percent in India, Indonesia, China, and Malaysia, far below the rates found in Hong Kong, Singapore and South Korea. This creates a $178 billion opportunity for insurers for mortality protection alone, more than 5 times the opportunity compared to North America.
Bain & Company’s research finds that insurance providers can focus on three key areas to get ahead in APAC:
- Digital distribution- This is getting a push from regulators, with authorities in several countries becoming actively encouraging of digital innovation with government-funded incubators to encourage insurers to experiment with new technologies.
- Ecosystems- By creating or joining ecosystems incumbent insurers can offer their customer far greater number of services and options, redefining their customer relationships which result in increased customer satisfaction and loyalty.
- Customer experience- In order to give customers the best experience possible, insurers need to radically redesign customer episodes from end-to-end and offer digital services which allow for ease of use and access to information and assistance.
Although Bain & Company data shows that there are areas of great opportunity for insurers throughout Asia Pacific, they must be cautious as this is a diverse region where the needs of one market may not match those in other areas, and insurance models vary from country to country. While China, India and some parts of South East Asia have experienced double-digit growth in this sector, more mature markets must contend with slow or zero growth.
Singapore: Life insurance industry records 1% growth for 1Q 2019
The Life Insurance Association, Singapore (“LIA Singapore”) reported that the industry grew 1% y-o-y in weighted new business premiums to S$937.2 million for the first quarter of 2019.
Sustained uptake of annual premium products mitigates decreasing uptake of single premium products
There was a continued steady increase in the uptake of annual premium policies in the first quarter, which rose by 11 per cent from the corresponding period in 2018, amounting to S$712.5 million in total weighted annual premiums.
The industry’s uptake of single premium policies recorded a 20 per cent decline year-on-year to S$224.7 million, primarily due to subdued global and local economic growth.
Uptake of CPFIS-included products reduced this quarter, following the phased reduction of sales charge and wrap fees. Announced in March last year, the first phase came into effect in October 2018, with the second phase to take effect in October 2020.
Continued steady increase in uptake of retirement policies
By policy count, the industry recorded an 84 per cent increase in the uptake of retirement policies in 1Q2019. These policies are designed to provide regular payouts during policyholders’ retirement years.
12,213 policies were purchased, a significant 5,582 more policies compared to the previous year in which 6,631 policies were bought as at end March 2018. This also continues from last quarter’s year-on-year 48 per cent increase in the uptake of such policies with a total of 38,120 policies purchased in YTD 4Q2018.
Making up about 12 per cent of total weighted premiums for 1Q2019, retirement policies totalled S$109 million weighted premiums for this quarter.
Integrated Shield Plan (IPs) are still a significant component of health insurance
62,000 more Singaporeans and Permanent Residents were covered by IPs and riders as at 31 March 2019. 2.74 million lives - approximately 68 per cent of Singapore residents - are now protected by IPs and riders, which provide coverage on top of MediShield Life.
Total new business premiums for individual health insurance for 1Q2019 amounted to S$97.3 million.
Integrated Shield Plans (IPs) and IP rider premiums accounted for 86 per cent (S$83.8 million) and the remaining 14 per cent (S$13.5 million) comprised other medical plans and riders.
Industry’s digital transformation supported by expanding talent pool
The life insurance industry added 715 hires last year to reach a workforce of 8,309 employees as at 31 March 2019 with recruitment concentrated in areas of data analytics, cyber security, customer service and marketing as life insurers pursue digital innovation and business expansion.
The role of financial advisory representatives in Singapore remains essential, giving counsel and customising recommendations based on each individual’s circumstances and protection needs.
15,384 representatives held exclusive contracts with companies that operate a tied agency force as at 31 March 2019, 567 more than the corresponding 14,817 in 2018.
Looking Forward
A season of gentler growth presents a window of opportunity for the industry to strengthen deep expertise and build up new capacities to better serve consumers and bridge their protection gaps, by:
- Transforming the workforce for the future, working closely with relevant parties to attract talent and upskill our current workforce;
- Driving innovation to demystify life insurance, and using advanced technologies to make life insurance products more accessible; and
- Enhancing public education to help bridge the protection gap.
Great Eastern’s first quarter financial results and the acquisition of PT QBE General Insurance Indonesia
Great Eastern Holdings Limited (the “Group”) has reported a 124% increase in Profit attributable to shareholders in the first quarter of 2019. The increment in profit was due to higher valuation of the investments as a result of favourable financial market conditions.
The Group’s total weighted new sales for the first quarter grew 6% as compared to the same period last year. The Group’s operations in Malaysia and Indonesia continued its growth momentum, driven by all distribution channels. In Singapore, Agency sales remained resilient, while Bancassurance showed a slight dip. The Group’s new business embedded value was marginally lower for the quarter compared to the same quarter last year.
PT QBE General Insurance Indonesia acquisition completed
The Group announced that its wholly-owned subsidiary, Great Eastern General Insurance Limited, has completed the acquisition of PT QBE General Insurance Indonesia. 95% of the shares will be held by Great Eastern General Insurance Limited, and the 5% by PT Suryasono Sentosa.
The acquisition fits the Group’s business strategy to further grow its footprint in a country with over 260million population.
Singapore: Maybank launches an integrated banking programme for Silver generation
Maybank Singapore has launched Maybank Passion Plus Programme (“Programme”) for customers aged 50 and above. The integrated package encompasses banking products with preferential savings rates and lifestyle perks.
Customers will be given welcome vouchers when they sign up for the Programme. They can also consult a Maybank financial adviser to identify any shortfalls in their retirement income. Programme customers will enjoy an attractive interest rate on their Maybank Privilege Savings Account and fixed deposits in Singapore Dollar Privilege Plus Time Deposit.
Together with Etiqa Insurance, Maybank has developed a retirement calculator on its website to help customers discover their level of preparedness, and determine the ideal retirement sum. Find out more at maybank.sg/passionplus.
Hong Kong: Manulife announces two senior regional directors among 30 promotions
Manulife Hong Kong has promoted two industry veterans to its most senior agency roles along with 28 other senior promotions.
George Lung, JP, has been appointed Senior Executive Regional Director. He is a 29-year veteran of Manulife Hong Kong who has served as Executive Regional Director since 2016.
He is a frequent qualifier for overseas conferences and has earned various Manulife awards, including the Regional Director of the Year accolade, with outstanding results in both production and recruitment. He set a new record of attaining the Distinguished MDRT District – Highest Number of Qualifiers in 2018.
Mr Lung has garnered various awards from the General Agents and Managers Association (GAMA), consistently achieving Frontline Leader Awards (FLAs) and International Management Awards (IMAs) since 1996. He was named The Outstanding Community Agent of the Year at the Hong Kong Insurance Awards 2014. Mr. Lung received the Bronze Bauhinia Star from the HKSAR Government in 2014 for his commitment to community service.
Johnny Chan has been promoted to Senior Executive Regional Director. He joined Manulife in 2009 and was promoted to Executive Regional Director in 2017.
He is a frequent winner of various Manulife management awards, including the Regional Director of the Year accolade, reflecting his successes in production growth, recruitment and productivity. Under Mr Chan’s leadership, one-fifth of his agency group has become MDRT qualifiers.
Mr Chan serves on many advisory committees and has made significant contribution to the company’s business development. He has also been recognised in numerous industry awards and appointments. He served as President of Life Underwriters Association of Hong Kong (LUA) in 2006 and has been a frequent winner of LUA Distinguished Manager Awards, International Dragon Award (IDA) Manager - Platinum Awards, and various GAMA awards, including the FLA, IMA and Master Agency Award (MAA).
There were promotions also for other senior agency leaders in recognition of their contribution to the company’s growth. Danny Yau, Bonnie Kan, Raymond Wan, Victor Kuan and Daniel Cheng have all advanced to Senior District Director.
Elizabeth Tang, Wendy Chan, Daniel Li, Mandy Cheung, Paul Yeung, Andy Law, Terence Tang, Jackie Chan, Tracy Wong, Janette Chan, Lyman Lee, Michael Ismail, Sisi Sun, Terry Chan, Victor Chan, Carolina Dos Santos and Jeremy Tsang have been promoted to the position of District Director.