International Investment Strategy - Professionalizing Investment and Risk Management

International Investment StrategyInvestment management is a critical pillar of the insurance business, and one that is particularly important for large incumbents who have significant assets under management. The stakes are high. If they get this right it can serve as a structural advantage; on the other hand, the risk of not getting this right can be fatal - Asian life insurers are under tremendous pressure due to the high cost of their liabilities and, thus, any mis-steps in investments can ruin the entire franchise.Local incumbents have traditionally viewed investment management as an afterthought. For decades, in many companies, the investment...

Read the rest of this entry »

Posted in International Investment Strategy

Life Insurance Product Development Process - Winning Through Product Innovation

Life Insurance Product Development ProcessWe have already talked about the shift across Asia from traditional life products to investment-linked vehicles, along with the need to tailor products much more to the needs of individual channels and customer segments. All this requires an upgrade of product development capabilities at life insurers across Asia. First, life insurers need to link product development much more closely to channels and customer segments, systematically understanding their specific needs better and incorporating their insights into the product development process. For example, Prudential (UK) has been very successful...

Read the rest of this entry »

Posted in Life Insurance Product Development Process

Job In Bancassurance - Creating Value In Bancassurance

Job In BancassuranceBancassurance has grown from almost zero in the year 2000 to a range of 30-50 percent share in most Asian markets. However, insurance companies have found it increasingly hard to generate value in this channel that is proportionate to the top line. Banks have been able to negotiate very competitive commissions across Asia, and products are mostly very simple, single-premium, investment products that offer little differentiation in the market beyond price. Life insurers and banks often have arm's length relationships where the life company is barely more than a capacity provider. Banks have mostly focused on converting...

Read the rest of this entry »

Posted in Job In Bancassurance

Success In Insurance Sales - Restructuring Of Sales Force

Success In Insurance SalesWe see rejuvenating sales forces as the number one priority for most established insurance companies in Asia, in particular the local incumbents. However, it is also probably the most difficult endeavor for them, since this involves facing up to a lot of legacy issues, and potentially challenging some highly engrained cultural values at these companies. The pace of these changes reflects the resolve of the top management. There are some encouraging signs. A few of the large incumbents have started to hire new, better-educated agents and provide them with improved training while gradually eliminating unproductive...

Read the rest of this entry »

Posted in Success In Insurance Sales