1. Human Capital in China Insurance Industry Dominic Leung Chairman and CEO, Ping An Insurance, P. R. China 12 th July, 2005 This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the client organization without prior written approval from Ping An of China. This Material was used by Ping An during an oral presentation

2. 1 Industry environment in China Challenge to Human capital Agenda of HR change management in Ping An Content:

3. 2 Industry environment in China Competition entities are expanding dramatically Operation of insurance company is becoming more international The average market growth has been over 30% since 1980 --- Premium income Billion --- number of insurance company

4. 3 Industry environment in China (continued) Human capital as sources of productivity growth for the whole industry (Take life insurance for example) --- Employee number --- Insurance agent

5. 4 Challenge to Human capital A talent war in China insurance industry In shortage of a professional workforce capable of -- driving sales faster than the competition -- managing multiple distribution channels -- providing exceptional customer service -- ensuring high levels of operational efficiency -- managing risk and complying with industry regulation. Intensive competition result in three main challenges to Human capital --- The gap between talent supply and demand Serious in need of  Actuaries  Certified Risk Manager  IT specialist  creative and risk taking entrepreneur  High-level manager,with international background, know well insurance marketing  Experience trainer 、 underwriter  Well-informed and cross functional insurance agent --- Many companies are relying on buying ready-made talent while the supply gap is existing. Talent cost increasing significantly  Investment specialist

6. 5 Agenda of HR change management in Ping An Since Ping An has been regarded as the talent tank of china insurance industry, we are seriously confronted with Human capital challenges: Ping An has utilized short-term and long-term change approaches, aligning our human capital agenda to our business agenda and strategy In short-term  In short-term, retaining good performers and win talent war  In long-term term, creating and maintaining professional workforce Retain good performers Win the war for talent Learning & Development opportunities Culture value Incentive salary system: defer payment stock option variable pay goal approaches

7. 6 Agenda of HR change management in Ping An (continued) Once talent supply gap identified according to business strategy, Ping An has launched talent pool project, as a long-term change approach. Talent pooling Creating and Maintaining a professional workforce Talent Development succession planning In long-term identify talent gap through HR planning selected and identified by line managers competence evaluation on job training formal train program provided by Ping An university project assignment design individual career path provide mentoring support objective performance assessment

8. 7 Thank You!