Bancassurance

Mike BishopRegional Director, Alternative Distribution

15th Nov, 2000

Bancassurance

Content

• The bancassurance market in Asia

• Our bancassurance model

• Results to date

• Our plans for growth

• Summary

1

Bancassurance

The Asian Bancassurance Opportunity Is Large• Estimates suggest

bancassurance sales could triple by 2005

• Banks enjoy a special relationship with individuals from an early age

• Higher propensity for customers to use branches

• Consumer feedback2

Bancassurance

Our Bancassurance Model

• Essence of model is proactive sales and activity management

• 3 distinct channels within overall bancassurance structure

• Flexibility is key: model can be tailored to fit each partner as required

• Proven model – we already operate it across 5 countries in Asia

3

Bancassurance

•Prudential employed

•Traditional life products

FinancialServices

Consultants(FSCs) Sales

•Bank employed

• Simple “bundled” life products

Bank Sales

•Combination of direct mail and telesales

•Simple products suitable for credit card base

Direct Sales

Our Bancassurance Model

4

Bancassurance

Financial Services Consultants (FSCs)• Dedicated Prudential salesforce

• Based in bank branches

• Comprehensive sales training programme

• High quality sales management process

• Lead generation approach

• Experimental hub centres

Bancassurance 5

The FSC Sales Process

Sale closed

Full fact find

Initial introduction

by FSC

Customer referred to FSC

Customer visits branch

Follow up review in

6-12 mths

The Virtuous CircleBancassurance 6

Bancassurance

Bank Sales

• Increases Prudential’s reach: # of branches & sellers

• Tailored, simple products− Mortgage Protection− Credit Life− Deposit-based life

products• Comprehensive sales

training for bank staff• High quality sales

support & service

7

Direct Sales

• Targets credit card customers

– Mail/Phone-Sell-Build-Nurture

• 40,000 policies sold in first 9 months of 2000

• Improves customer retention and card usage for partner bank

Bancassurance 8

Bancassurance

• Upgrade/add on• Cross-sell

− response rate 20-30%

BUILDTelemarketing

The Direct Sales Process

NURTURE• Loyalty campaign

− Free cover

Telemarketing

• Response rate 10-30%

SELL

MAIL/PHONE

9

Tailored To Fit - How WeHave Used The Model So Far

Singapore

Hong Kong

Transferable to all markets

Full Model Hong Kong

FSCs & Bank Sales SingaporeMalaysiaIndonesia

Bank SalesThailand

Thailand

Malaysia

Indonesia

10 Bancassurance

Bancassurance

Excellent Results To Date

11

Growth 9 mths 1999 - 9 mths 2000

Regular premium

Single premium

Customers acquired

Conversion rates

FSC productivity

+274%

+140%

+115%

+ 27%

+105%

Bancassurance

Continuing Our Growth

• Significantly increase – Financial Services Consultants– Productivity

• Develop new tailor-made products

• Expand distribution in Malaysia & Singapore to include direct sales

• Target new customer segments and markets

12

Broaden relationship with Standard Chartered Bank

Bancassurance

• Rollout our bancassurance model

– New markets

– New banks

• Aggressively pursue Direct Marketing in select markets

Continuing Our Growth

13

Bancassurance

Summary

• Early days for our bancassurance initiative but scale of growth apparent

• Prudential is well placed to exploit this opportunity

− Clear strategy

− Proven, flexible, transferable model

− Management commitment

− Strong regional partner

14