MONTHLY REPORT DECEMBER, 2008

→ UW 5 → 6 POLICY ADMIN 17 → 35 PREM. 2 → 8 Claim 1 → 2 POS CS

POLICY ADMIN REVIEW OF 2008

UW CS PREM POS CLAIM

companyTime(min)Check app.Key inCollect money Cathay VN10yesYes (100%)yes Cathay CN5yesYes (100%)yes Prudential5yesYes (20%)yes Manulife2no yes AIG2no yes ACE2yesnono (bank) Time receiving for 1 application form at Service Center Time receiving for 1 application form at Service Center

Cathay product System Communication skill Continuously train CS Da nang ( March ) Can Tho Set up new service centers

Company Cathay VN Manulife Cathay CN Cathay TW Received1,966100% －－－ Issued1, % －－－ Decline & Postpone 552.8%3%1 %2.7 % Cancel & closed 593.0% －－－ pending110.6% －－－ ◎ Base on the material of the received cases form 4/7/2008~30/11/2008 Company Cathay VN PrudentialManulife Cathay CN Cathay TW Incomplete45023% 4% 8%15 %3 % Medical Exam1809%12%2 %7-9 %

High Incomplete Ratio High Medical Exam Ratio Low Confirmation Slip Return Ratio Half of them are over 5 days

Improve agent skill of filling application form Review and modify application form Reduce incomplete ratio Enhance u/w capability ME cases periodical analysis will be conducted Reduce medical exam ratio Modify confirmation slip management, commission deducted if overdue (＞21 days) Increase confirmation slip return ratio

TIA checking TIA checking to avoid premium encroached HCMC: 87 % HN: 38% Collector System Home service for premium collection Avoid AG hiding customer’s information Premium Promotion Start to utilize incentive to enhance premium efficiency Checking ratio still need to increase

195170, ,65481 % Period : form Sep to Nov. Prem. Unit: 1,000VND

14% How to encourage clients to pay on time ?

Cash at bank counter Bank transfer Direct debit ATM Correct address and telephone. Set up effective incentives for early payment Implement TIA checking, tracking to each AS,to increase checking ratio.

CompanyCathay VNPrudentialDai-chiCathay CNCathay TW Ratio 3.91 % (77/1966) 1.15 % 3.00 % 1.80 % 2.00 % Change Frequency / Term / SA in free look Financial conditionPersonal reasons % % Cancel ratio Cancel reason analysis ◎ Base on the material of the cancel cases form 4/7/2008~30/11/2008

Set up SOP for advising cancel and surrender cases Increase the ratio of reinstatement for lapsed policy Maintain in- force policy Make the periodical survey of insurance company ( permit for policy change in free look period ) DO POS fit in market Develop signature image system POS reality check

QUESTIONNAIRES From 31 Oct to 09 Dec 2008 YesNo 1. CLIENT SELF-SIGN IN THE APPLICATION FORM %1.04% 2. EXPLANATION ON EXCLUSION %2.08% 3. NEEDED DECLARATION WHEN FILLING IN THE APP FORM %1.04% 4. EXPLANATION ON FREELOOK PERIOD % 5. CORRECTION OF CURRENT ADDRESS %3.13% 6. SATISFACTION WITH AGENT’S SERVICE %0.00% %

STRENGTHWEAKNESS Contact to client actively Check Service Quality Check Client’s Policy Understand- ing Check Telephone/ Address Only randomly call 20% confirmation letter cases Lack of Agency Compliance

Hanoi Da Nang Can Tho Ho Chi Minh HAI PHOUNG Sign contract with hospitals in South : 15 hospitals North : 15 hospitals

speed ACCURACY