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 feedback

2

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 branchFollow

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

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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

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