While we think up witty lines and creative ways to express our affinity for Star Wars, here at Asia Advisers Network, we bring you industry insights, updates and latest news. New this week, we have expansions and new partnerships, as well as an exit strategy from a big-time company.
Great Eastern launches two new investment–linked plans
Great Eastern has launched two investment-linked plans (“ILP”) with industry-first riders to help customers bridge their protection gap and achieve their wealth accumulation goals respectively:
1. GREAT Life Advantage – a regular premium whole life ILP
- Affordable premiums from as low as S$100 per month for protection against Death, Total and Permanent Disability and Terminal Illness
- Provides customers the convenience and ease to increase coverage without medical underwriting at eight significant milestones in their lives, e.g. the birth of a child
- Free Child Cover Benefit of $20,000 for Death, Total and Permanent Disability and Terminal Illness for every child of the life assured
- Comprehensive suite of Critical Illness riders to complement the plan:
GREAT CriticalCare Advantage Rider
- Provides assurance against 53 Critical Stage Critical Illnesses, the highest number in the market
GREAT MultiPay CriticalCare Advantage Rider
- Provides assurance against 143 medical conditions, the highest in the market.
- The first plan in the market to allow for claims on non-cancerous tumours
- Multiple claims of up to three times for Critical Illness at various stages and the first such plan to allow multiple claims for cancer, heart attack and stroke
2. GREAT Wealth Advantage - an ILP to grow wealth for their medium- and long-term goals
- Affordable premiums from as low as S$200 per month
- 100% allocation of basic regular premiums to purchase units in the selected investment-linked funds
- Welcome Bonus of 5% of basic regular premiums paid for the first policy year as bonus units
- An additional Loyalty Bonus of 5% of the basic regular premiums paid in the form of extra units from the 10th policy year onwards, every time the policyholder makes a payment
- The flexibility to increase one’s investment or make partial withdrawals in the future, and the option to switch funds and restructure the portfolio conveniently
- Coverage against Death, Total and Permanent Disability and Terminal Illness with no medical underwriting required
Australia: Aon exits financial advice business
Aon has announced that it is exiting the financial advice business and will sell its financial advice arm. Aon will also exit its aligned adviser channel in a phased approach over the coming months.
Jayson Walker, General Manager, Aon Hewitt Financial Advice (AHFA) is executing a management buy-out of the Aon owned business. The new ownership model will allow AHFA to invest in the requirements of a specialised advice business and respond to the needs of the marketplace.
Aon made the strategic decision in 2017 to exit the advice business and to focus on its superannuation and investment product offering and the long-term sustainability of smartMonday. That decision has been reflected in Aon’s alliance with Equity Trustees and the merger of the Executive Superannuation Fund and the Aon Master Trust in 2017 to create a $5 billion superannuation partnership.
Malaysia: Mydin Mohamed Holdings Berhad X Zurich Takaful long-term deal
Photo: Chief Executive Officer of Zurich Takaful Malaysia Berhad, Mukesh Dhawan, alongside Mydin Mohamed Holdings Berhad’s Managing Director, Datuk Wira (Dr.) Hj. Ameer Ali Mydin
Mydin Mohamed Holdings Berhad (“MYDIN”), Malaysia’s home-grown wholesaler and retailer of halal products, has signed a 10-year partnership with Zurich Takaful Malaysia Berhad (“Zurich Takaful”) to offer customers simple and hassle-free takaful solutions at selected MYDIN stores nationwide.
Starting 6th May 2019, the MYDIN wholesale hypermarket in Subang Jaya will showcase Zurich Takaful’s retail takaful booth. Where customers can learn more and participate in selected Zurich Takaful plans to protect themselves and their loved ones. Such booths will be set up in phases at over 60 MYDIN store nationwide. The collaboration will also be extended to MYDIN’s digital platforms such as its official website, mobile application and e-newsletter.
Allianz and Sri Ayudhya Capital PCL complete expansion of strategic partnership in Thailand
Photo: (L-R) - Lars Heibutzki, President & CEO of Allianz Ayudhya General Insurance; Bryan Smith, Allianz Thailand Country Manager, President and CEO of Allianz Ayudhya Capital PCL and Allianz Ayudhya Assurance PCL; Veraphan Teepsuwan, Chairman of Allianz Ayudhya Capital PCL; Dr Suthiphon Thaveechaiyagarn, Secretary General, Office of Insurance Commission; George Sartorel, Regional CEO, Allianz Asia Pacific; Solmaz Altin, Deputy Regional CEO, Allianz Asia Pacific; Claudia Salem, Regional CEO, P&C, Allianz Asia Pacific
Allianz and Sri Ayudhya Capital PCL (AYUD) have completed the expansion of its strategic partnership in Thailand, bringing about a stronger insurance franchise focused on meeting the diverse and growing protection needs of the local customers and enhancing the Allianz proposition in the region.
This expansion has resulted in a deepened partnership across life and general insurance business, and it will increase investment and innovation, as well as accelerate growth and deliver increased value for customers in Thailand.
Some highlights of the expansion:
- The combination of Allianz General Insurance (AZTH) and Sri Ayudhya General Insurance (SAGI) to form a larger P/C company well positioned for future growth and innovation
- Key insurance-related entities falling under the Allianz Ayudhya brand – enhancing local market presence and delivering a consistent experience for customers
- Allianz SE becoming the largest shareholder in AYUD
As part of the transaction, AYUD will be renamed Allianz Ayudhya Capital PCL. It continues to be listed on the Stock Exchange of Thailand under the ticker AYUD. Further, Sri Ayudhya General Insurance (SAGI) will be renamed Allianz Ayudhya General Insurance PCL.
Veraphan Teepsuwan remains as Chairman of Allianz Ayudhya Capital PCL. Bryan Smith has assumed the role of President & CEO Allianz Ayudhya Capital PCL and the newly created position of Country Manager, Allianz Thailand, overseeing the overall business in Thailand. He remains the President & CEO of Allianz Ayudhya Assurance PCL, the life insurance business. Lars Heibutzki has been appointed President & CEO of Allianz Ayudhya General Insurance PCL.
Hong Kong: 21% YOY increase in Q1 2019 in operating profit for Ping An
Ping An Insurance (Group) Company of China, Ltd (“Ping An”) reports its first quarter financial results for 2019.
Operating profit attributable to shareholders of the parent company rose 21% year on year (“yoy”) to RMB 34,119 million. Net profit attributable to shareholders of the parent company increased 77.1% yoy to RMB 45,517 million.
By the end of the first quarter in 2019, Ping An’s total retail customers grew to nearly 191 milllion, an increase of 3.6% compared to the beginning of the year. Their internet user base also went up 4.2% to 561 million. In the first quarter of 2019, Ping An had acquired 11 million new customers, 31.3% of whom were sourced from internet users within its five ecosystems.
Core finance businesses maintain steady growth
In the first quarter of 2019, under the belief that “insurance should be protection-oriented,” Ping An proactively adjusted the product mix by de-scaling short-PPP (Premium Payment Period) savings products and increasing focus on long-term protection products and hybrid long-PPP protection and savings products. As a result, NBV of the life and health insurance business rose by 6.1% year on year to RMB21, 642 million despite first-year premium (FYP) declining 10.8% year on year.
The Company further implemented fintech and healthtech strategies
In the first quarter of 2019, under the “finance + technology” and “finance + ecosystem” strategies, Ping An continued to increase investment in areas including AI, blockchain, and cloud computing to proactively develop its five ecosystems and facilitate the Group’s business growth. Steady business growth was achieved by “empowering financial services with technologies, empowering ecosystems with technologies, and empowering financial services with ecosystems.” As of March 31, 2019, Ping An had filed 15,316 technology patent applications, up 3,265 from the beginning of the year, ranking among the top tier of international financial institutions. The applications include 3,761 filed under the Patent Cooperation Treaty (PCT) and abroad.
People on the move
The Hong Kong Federation of Insurers (HKFI) appoints new governing committee for term 2019/2020
The Hong Kong Federation of Insurers (HKFI) has announced the appointment of its Governing Committee for the term 2019/2020:
Mr Praveen Daswani - Utmost Worldwide Limited
Deputy Chairman 2019/2020
Mr Eric Hui - Zurich Insurance Company Ltd
Ms Charity Au - BOC Group Life Assurance Company Limited
Mr Pui-leung Chan - China Taiping Insurance (HK) Company Limited
Mr Mike Lee - YF Life Insurance International Limited
Mr Guy Mills - Manulife (International) Limited
Mr Edward Moncreiffe - HSBC Life (International) Limited
Mr Jimmy Poon - Dah Sing Insurance Company (1976) Limited
Mr Ivan Tam - Chevalier Insurance Company Limited
Ms Winnie Wong - Asia Insurance Company Limited
HKFI Chairman 2019/2020: Mr Praveen Daswani
Mr Praveen Daswani has gained extensive experience in the international financial services sector having worked at both regional and international levels in various management roles encompassing business development, operations and compliance.
He currently serves as a General Committee member and an Honorary Secretary of the Insurance Complaints Bureau, a member of the Hong Kong Advisory Council of the Chartered Insurance Institute and a Member of the HKSAR Anti-Money Laundering and Counter-Terrorist Review Tribunal.
HKFI Deputy Chairman & General Insurance Council Chairman 2019/2020: Mr Eric Hui
Mr Eric Hui has accrued significant accomplishments in leading strategic business initiatives, innovative practices and market developments. He serves as the Chairman of GIC Legal Working Group and member of various Task Forces including Vision 2028, Employees' Compensation, and GIC Policyholders Protection Scheme.
Currently, Mr Hui is a member of the Insurance Training Board under Vocational Training Council and serving in the Motor Insurers’ Bureau of Hong Kong, the Employees Compensation Insurer Insolvency Bureau, the Employees’ Compensation Insurance Residual Scheme Bureau Board and the Insurance Complaints Bureau. He is also a panel member of the Insurance Appeals Tribunal as appointed by the HKSAR Government.
HKFI Life Insurance Council Chairman 2019/2020: Mr Guy Mills
Mr Guy Mills is the Chairman of the Life Insurance Council (LIC) and a member of the HKFI Governing Committee. He is the Chairman of Retirement Schemes Working Group and the member of Task Force on Customer Advocacy and Task Force on Vision 2028.
As Chief Executive Officer of Manulife (International) Limited, he oversees all Manulife’s businesses and distribution in Hong Kong and Macau, except for mutual-funds business. He is also a Director of the Board of both Manulife (International) Limited and Manulife Asset Management (Hong Kong) Limited. In addition, he is President and Chief Executive Officer of their holding company, Manulife International Holdings Limited.
Bain & Company’s global head of insurance practice relocates to Hong Kong as head of Bain’s Asia Pacific Financial Services practice
Bain & Company has relocated Dr. Henrik Naujoks, global head of its insurance practice to Hong Kong, and appointed him as head of Bain’s Asia Pacific Financial Services practice.
Dr. Naujoks will continue to lead Bain’s global insurance practice, while overseeing the growth, strategy, talent and operations of the firm’s Asia Pacific Financial Services Practice.
With more than 25 years of experience in management consulting and advising companies in the insurance and banking sectors on corporate and business unit strategy, customer strategy, organisation and post-merger integrations. He is also an expert in digital transformation.
Dr. Naujoks is actively involved in social impact initiatives. His special areas of interest are education with a focus on financial literacy and humanitarian aid. He serves as advisor for a broad range of organisations, like “Child and youth Finance”, WHU-Otto Beisheim School of Management, UNHCR and Medair.
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