LOGO Monthly report Planning Div. Chiang, Chih Hsiang

Agenda Market newsRider PromotionLife insurance product strategiesProject next month

Agenda Market newsRider PromotionLife insurance product strategiesProject next month

Market News  SBV cuts deposit interest rate for term less than 12 month to 9% on 11 June.  No limit the maximum deposit interest rate for 12 month to over 12 months terms BankHSBC Standard Chartered Bank ACBIVBSacombank 1 year9.00% 10.88%9.00%9.60%

Agenda Market newsRider PromotionLife insurance product strategiesProject next month

 R01&R03 Sales review in 4 th ~6 th working month Rider Promotion (*) ： R01 & R03 case / total case (**) ： R01 & R03 premium / total premium BranchHCMHNDNCTDnaiHPTotal Attached Rate (*) th 68.9%41.3%46.3%15.9%33.9%56.0%40.2% th 61.1%14.6%26.9%24.4%26.0%54.5%29.3% th 62.2%5.0%51.7%11.9%23.4%66.7%24.3% th ~ rd 55.0%9.7%45.3%17.5%28.7%29.2%24.7% Premium Distribution (**) th 3.1%1.6%2.0%0.8%1.3%2.8%1.8% th 2.9%0.8%1.2%1.0%1.2%2.9%1.4% th 2.4%0.2%2.2%0.5%1.1%3.5%1.2% th ~ rd 2.2%0.4%2.2%0.7%1.3% 1.1%  Attached Rate increases about 11% in 6 th wkm  Premium Distribution increases 0.4% in 6 th wkm  HN has higher increase rate, but CT is too low

 All Riders Sales review in 4 th ~6 th working month Rider Promotion (*) ： rider case / total case (**) ： rider premium / total premium BranchHCMHNDNCTDnaiHPTotal Attached Rate (*) th 82.1%63.1%58.5%23.2%49.0%80.0%55.8% th 77.8%47.4%36.5%26.8%47.5%63.6%49.8% th 77.8%36.7%79.3%13.4%47.7%81.0%46.8% th ~ rd 66.5%36.7%65.7%24.4%44.3%46.6%43.1% Premium Distribution (**) th 6.4%3.1%5.8%1.4%3.4%8.2%4.0% th 6.1%3.6%3.8%1.1%3.8%7.7%4.1% th 6.0%2.2%5.8%0.7%3.7%7.4%3.6% th ~ rd 5.2%3.2%7.3%1.8%3.7%5.3%3.9%  Attached Rate of 6 th wkm increases 6% in 6 th wkm  HCM and HP have the higher Rider Attached rate

 RIDER PROMOTION CONTINUE Time: 14/6~5/9/2012 (2012.Q3:7 th ~9 th wkm) Product: R01 & R03 Content: FYP x 2.5 FYC x 1.2 Rider Promotion

Agenda Market newsRider PromotionLife insurance product strategiesProject next month

Insurance Operational Process System Thinking Customer Agent Investment Benefit Payment Satisfaction More Customers

How did Taiwan do?

Historical experience: Taiwan High Interest Rate High Pricing Rate High Dividend Endowment 、 Education 、 Cash Loss of Interest Rate

Lin-Yuan Group ( 霖園集團 ) The Wealth Comes From Land Only Rent, No Sell High Rental Income: 1.5 Billion USD one year High Assets Increase: 1979: 0.5 Billion USD  2004: 74.3 Billion USD (Increase 8 Million USD one day) Our Old Chairman 蔡萬霖 (Tsai Wan-Lin) Soy sauce

Taiwan: 1980~2000 High Pricing Rate High Dividend Invest Real Estate High Rental Income High Assets Increase Endowment

How did the United States do?

Historical experience: U.S. 1973: 1 st Oil crisis 1975: Fail in Vietnam War 1979: 2 st Oil crisis Stagflation = Stagnation + Inflation Fed raised interest rates 1979: 11%  1981: 20.0%  1982: 21.5% Many people surrender their insurance policies.  A lot of cash outflow from the insurance companies  Many insurance companies go bankrupt Solution: Universal Insurance

United States : 1980~1990 Universal High Declared Interest Rate Low Policy Fee High government bond yield High Interest

Historical experience: U.S. Economic recovery Interest Rate decrease Stocks, Corporate bonds, Mutual fund have high profit  Again, cash outflow form the insurance companies Solution: Unit-linked insurance Government is not the solution to our problems, Government is the problem.  Laissez-faire From French laissez faire (“leave it be", "let do”)

United States : 1990~2000 Unit-linked Investment Options Low Policy Fee Strong Economic Situation High Profit

Product Strategies Product Main Competition StrategySuccess Factors Endowment Bank High Pricing Rate High Dividend Invest the assets that can increase value for long-term UniversalBank High Declared Interest Rate Low Policy Fee High government bond yield Unit-linked Mutual Fund Investment Options Low Policy Fee Strong economic situation

How can we do in Vietnam?

Product Strategies ProductProblems Endowment Legal restrictions on real estate investment The term of government bond is short Universal Government bond yield is lower Agent commission is higher Unit-linked Rare Investment Targets in Vietnam  Making investment return higher than deposit interest rate is hard in Vietnam

How can we do in Vietnam? High investment return is hard High insurance benefit is easier Safety for your life

Building Cathay's Brand Make the Differential Product Design Enhance the Agent Profession Improve the Service System

Agenda Market newsRider PromotionLife insurance product strategiesProject next month

Sales Kit DesignNew Product design and submitPromotion Campaign related work Project Next Month

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