1. How can AIA obtain more market share in Hong Kong?
Yuki Ching
Esther Lam
Catherine Ho
Penny Seto

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

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

4. 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)

5. 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)

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

7. 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)

8. Catherine Ho (043122)

9. 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)

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

11. 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)

12. 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)

13. 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)

14. 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)

15. 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)

16. 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)

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

18. 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)

19. 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)

20. 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)

21. 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)

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

23. The End