HONG KONG and SHANGHAI, Sept. 14, 2020 /PRNewswire/ — Ping An Insurance (Group) Company of China, Ltd. (hereafter “Ping An” or the “Group”, HKEX: 2318; SSE: 601318) introduced that its life insurance coverage arm, Ping An Life, is driving enterprise in 4 key areas: its development mannequin, advertising, product technique and channel integration.
During the 2020 interim outcomes convention, Lu Min, Chief Insurance Business Officer of Ping An, mentioned, “Despite the unprecedented challenges and the business’s inertia to sweeping adjustments, we’re assured that this reform will pave the best way for Ping An Life’s additional growth within the subsequent decade.”
Ping An Life’s Reform Will Set It Apart
The earlier spherical of enterprise reform for Ping An Life started in 2004. Based on market situations, Ping An switched from investment-linked insurance coverage merchandise to safety merchandise and withdrew from low-value bancassurance channels. The quantity of insurance coverage brokers shrank to 200,000 from 320,000. These adjustments laid a powerful basis for the following decade.
The present transformation program was proposed in 2018 and formally launched within the second half of 2019. Due to the adjustments out there, buyer demand and expertise during the last decade, the normal agent mannequin just isn’t sustainable, Mr. Lu mentioned.
The present reform includes 4 key areas:
- Growth mannequin – Ping An will proceed to reinforce the standard of its group of brokers, and can shift its focus from quick development of the group to a steadiness between high quality and scale. The quantity of Ping An Life’s brokers on the finish of June 2020 elevated by 1.2% quarter-on-quarter, and the quantity of brokers will stabilize step by step.
- Marketing – The conventional system is manually pushed, which leads to some operational inefficiencies. Ping An will use numerous applied sciences to shift to data-driven operations.
- Product technique – Ping An can draw on its strengths in built-in monetary companies to construct a “life insurance +” product portfolio to satisfy the vary of prospects’ wants in every day life. Ping An will present prospects with tailor-made and complete choices in life insurance coverage, well being care, aged care and training.
- Channel integration – Ping An is shifting from a two-pronged on-line and offline enterprise mannequin to online-and-offline mannequin. For instance, through the COVID-19 pandemic, Ping An Life used on-line platforms such because the Jin Guan Jia insurance coverage coverage administration app and E-Sales app to help brokers’ on-line operations. Through core purposes corresponding to Smart Customer Services and Smart Quick Claim, Ping An Life already gives prospects with 24-hours, seven-days-a-week companies for claims and renewal. In the primary half of 2020, Ping An Life processed 1.69 million claims. Compared with the identical interval final yr, the share of claims settled inside 30 minutes by way of the Smart Quick Claim elevated from 47% to 50%, with the quickest case taking just one minute.
Ping An Life’s New “Basic Law” Emphasizes Quality Before Scale
A key step in Ping An Life’s transformation has been the replace of its Basic Management Measures for Life Insurance Business Personnel, or Basic Law. Mr. Lu mentioned the amendments embody group reclassification, agent rating by expertise, and elevated long-term funding in brokers.
- Organization reclassification will clearly differentiate the roles of numerous items. Ping An will divide enterprise items into three classes, a productivity-focused class, a balanced growth (between labor and productiveness) class, and a high-quality labor-focused class.
- Agents might be grouped into three classes: new recruits, excellent brokers and supervisors, with tailor-made insurance policies and practices for every. For new recruits, Ping An has elevated and prolonged the period of their subsidies. For excellent brokers, Ping An has supplied extra incentives to encourage them to recruit excellent brokers. For supervisors, the main target might be on digital administration.
- Ping An will improve long-term funding in brokers in areas corresponding to advantages, remuneration and administration.
Mr. Lu mentioned, “Ping An Life’s Basic Law helps the target of Ping An Life’s enterprise reform, which is to develop stronger earlier than rising greater, specializing in high quality earlier than scale. In the revision of Ping An’s Basic Law, now we have shifted from speedy development of our group of brokers as the important thing enterprise development driver, to pursuing each agent amount and high quality. We will proceed to emphasise recruitment, however will develop our pressure with high quality brokers, as an alternative of pursuing sheer numbers.”
Ping An Life has accomplished the top-level design of most of the transformation tasks, and launched pilot packages at branches for almost half of the tasks. Most of the reform tasks might be applied this yr, with the outcomes mirrored within the enterprise in the beginning of 2021.
Ping An not too long ago introduced its 2020 interim outcomes: working revenue attributable to shareholders of the mother or father firm within the first half of 2020 elevated by 1.2% yr on yr to RMB74,310 million. Operating revenue after tax of the life and medical insurance enterprise rose by 6.4% yr on yr to RMB51,535 million.
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About Ping An Group
Ping An Insurance (Group) Company of China, Ltd. (“Ping An“) is a world-leading technology-powered retail monetary companies group. With over 210 million retail prospects and 560 million Internet customers, Ping An is one of the most important monetary companies firms on this planet.
Ping An has two over-arching methods, “pan financial assets” and “pan health care”, which give attention to the supply of monetary and healthcare companies by means of our built-in monetary companies platform and our 5 ecosystems of monetary companies, well being care, auto companies, actual property companies and sensible metropolis companies. Our “finance + technology” and “finance + ecosystem” methods purpose to offer prospects and web customers with modern and easy services and products utilizing expertise. As China’s first joint inventory insurance coverage firm, Ping An is dedicated to upholding the very best requirements of company reporting and company governance. The Group is listed on the inventory exchanges in Hong Kong and Shanghai.
In 2020, Ping An ranked 7th within the Forbes Global 2000 checklist and ranked 21st within the Fortune Global 500 checklist. Ping An additionally ranked 38th within the 2020 WPP Kantar Millward Brown BrandZTM Top 100 Most Valuable Global Brands checklist. For extra info, please go to www.pingan.cn.
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SOURCE Ping An Insurance (Group) Company of China, Ltd.