How can AIA obtain more market share in Hong Kong? 043101 Yuki Ching 043115 Esther Lam 043122 Catherine Ho 043125 Penny Seto

Agenda Introduction of insurance industry Current situation in Hong Kong About AIA SWOT analysis Recommendation Conclusion Catherine Ho (043122)

Introduction of insurance industry Divided into two parts – Long Term Insurance Business General Insurance Business Catherine Ho (043122)

Long Term Insurance Business Last for a long period of time Do checking before the policy is being legal bound Cannot be broken off (unless requested by the client) Form the contracts conscientiously and carefully Protect all the things related to the human lives Catherine Ho (043122)

General Insurance Business Last for a shorter period of time Need to renew annually Protect the economic loss Related the daily life Catherine Ho (043122)

Current situation in Hong Kong Over 180 authorized insurers The highest density of insurance companies The most fairness insurance market Catherine Ho (043122)

Long term business premiums increased 27.4% to $98.4 billion equivalent to 9.4% of the GDP Premium income grew 19.5% to $121.9 billion Catherine Ho (043122)

Catherine Ho (043122)

Introduction of AIA – Our target company AIA - American International Assurance Company Limited The largest life insurers in Hong Kong Offer comprehensive product line Established in 1969 in America Subsidiary of American International Group, Inc. (AIG) Catherine Ho (043122)

Comparing with Manulife SWOT Analysis Comparing with Manulife Esther Lam (043115)

Strengths (Awards) Gold SuperBrand for Hong Kong and Platinum SuperBrand for Asia (Reader’s Digest Asian SuperBrands & the Yahoo! Emotive Brand Awards) First Asia-based life insurance company to be assigned “AAA” insurer financial strength by Standard & Poor’s (S&P) Esther Lam (043115)

Strengths (Market Shares) AIA gets the largest market shares (17.2%) and Manulife gets the second largest market shares (12.4%) AIA is the Market Leader Esther Lam (043115)

Strengths (Plans) 7 new plans (AIA) > 4 new plans (Manulife) Comparing with Manulife, the life insurance plans of AIA are more comprehensive with more varieties of products, e.g. the female insurance Esther Lam (043115)

Strengths (Female Insurance) The “Lady’s Choice AP” (AIA) : 45 critical illnesses, including female cancers and Systemic Lupus Erythematosus (SLE) with Lupus Nephritis (系統性紅斑狼瘡與狼瘡性腎炎) “My Premier Lady’s Benefit” (Manulife) : 8 critical female illnesses and 13 common female treatments. Esther Lam (043115)

Weaknesses (Protect Duration) AIA protect duration is shorter than products from Manulife and coverage areas also smaller Manulife cover 48 major diseases until 100-years-old, while AIA cover no more than 47 illnesses until 80-years-old or below Esther Lam (043115)

Weaknesses (Flexibility) Premium retirement income plan (Manulife) : policyholders could choose to withdraw income when they are 50, 55, 60-years-old Similar products from AIA can only select target retirement age at 55, 60, or 65-years-old Esther Lam (043115)

Opportunity Explosion of H5N1 and SARS Entrance into China market Amount of insurance occur of reinsurance Penny Seto (043125)

Threat Sharp market competition affect AIA’s market shares Insurance industry has reached the peak already and being saturated Name of insurance Market shares 2003 Market shares 2004 AIA(Bermuda) 18% 17.2% Manulife(Int’l) 13.9% 12.4% HSBC Life 9.5% 11.9% Hang Seng Life 3.5% 4.2% Penny Seto (043125)

Recommendations Insurance industry were saturated Introduce new plans for new markets e.g. pet insurance Provide more short-term plan rather than traditional Long-term plan More flexible  for young people Yuki Ching (043101)

Recommendations (con’t) More promotion strategies educate the new generation More communicate with clients More communication channel e.g. quick response to complaint Yuki Ching (043101)

Recommendations (con’t) People ‘s life become longer Extend the protection period of insurance policy Aging problem in H.K more senior and the retirement plans Yuki Ching (043101)

Conclusion Introduced the insurance industry and AIA Using SWOT analysis Recommendation Keep on improvement in order to match the changing world Yuki Ching (043101)

The End