Foreign Insurance_Final 3教程.pptVIP

* Disrupt or Be Disrupted: a Case of Home Foreign PC Market Beijing, China 2013 The Third World Insurance SummitMichael YuAIG Insurance Co. China Ltd. Market in the Past 20 Years A Snapshot: Questions Yet to Be Answered: Foreign Market Share Rounding error, without significant improvement in the last 10 years Underlying reasons – market reach, auto positioning as a niche player Geographical Spread Total number of Outlets: Foreign 70 vs. 13,000 (PICC Business Offices) Limitation on LOBs: Large commercial risk and Marine Marketing, sales and service capability Bottom Line Pressure Investment phase vs. demand for return. China Contribution to Global profitability Localization – 3 Major Phases Market Positioning - Major Market v. Niche Player Key Challenge Ahead “Market with Chinese Characteristics” Newly Opened up Auto Market Overwhelmingly positive feedback Mixed at the technical level Geographical Expansion Regulatory Environment Time and process of application Number of branches to apply Level of Market Regulation and Cost of Compliance Cost Pressure: “Revenue up Cost down” The Head Office Supports Understanding of China: Perception vs. Reality Management Structure: Dynamic Market vs. Decision- making model efficiency Talent Competition Cost Pressure Number of Branches China CostInfrastructure A Few Game Changers Key Growth Drivers: From Commercial to Consumer Focus Geographical Spread and Provincial Licensing Bottom Line Pressure Shift of Growth Model The Head Office Commitment Game Changers: Commercial to Consumer Focus Revised Value Proposition: Renewed Business Model Strategy Significant Investment in Infrastructure Bottom Line Pressure Talent War Game Changers: Geographical Spread Compete with One Arm Bound: Service Capability Challenge in Non-licensed Territory Centralized Support Structure Marketing Sales with Limited Market Reach Game Changers:Bottom Line Pressure Return on In