Sales management and agent training and
motivation
Topics
„ Individual agent channel
„ Sales management strategy
„ Agent training and motivation
-1-
Stable individual agent force: a competitive advantage
Number of life insurance
agents in China since 2003
160
140
120
100
80
60
40
20
0
143.2
China Life’s individual
46%
65.5
139.6
48%
135.5
66.8
47%
64
137.6
47% 60%
65.2
FY03
FY04
FY05
FY06
Total Agents
143.2
139.6
135.5
137.6
CL Agents
65.5
66.8
64
65.2
% of CL Agents
46%
48%
47%
47%
Total Agents
CL Agents
40%
20%
0%
agents accounts for
nearly half of the total
life insurance agents in
China.
% of CL Agents
*
Stable sales force
drives continuous
growth.
* Note: The number of insurance agents of 2003 included both life insurance and non-life insurance agents.
Source of data: CIRC
-2-
Quality of our agents improves continuously
Number of insurance agents, and
percentage of licensed agents
Current individual
80
60
66.8
65.5
64%
72%
48.1
64
79%
65.2
94%
60.9
50.7
41.6
100%
agents at about
80%
60%
40
650,000
40%
20
20%
Improving quality -
0%
0
2003
Sales Number
2004
Qualified Holders
2005
94% of agents are
2006
Rate of Qualified Holders
licensed
-3-
Solid training support to guarantee fast agent team growth
Trainers, agent supervisors and distribution network
15000
12000
9300
8000
8400
8400
9200
6000
1200
2003
2004
trainers
1300
1100
950
agent supervisors
2005
2006
distribution network
* Source of data: China Life annual reports
-4-
• Growing
distribution
network and
strong sales
team
management
• Strong support
for sales team
development via
structured
trainings and
sufficient pool of
instructors and
supervisors
Designated sales channels at all levels
Headquarters
Responsibilities of individual
insurance dept. at different levels
Individual
insurance
Dept.
Other Dept. in
Headquarters
Provincial
Branch
ƒ Policy-making and sales planning
ƒ Plan and implement the promotional plans
Other Dept. in
Provincial branch
Individual
insurance
Dept.
City-level
branch
ƒ Develop and promote sales support tools
ƒ Build a training system and implement
training programs
ƒ Strengthen sales risk management
ƒ Explore new sales channels and mechanism
Other Dept. in citylevel branch
Individual
insurance
Dept.
County-level branches/ field
offices
Sales
Team
-5-
Topics
„ Individual agent channel
„ Sales management strategy
„ Agent training and motivation
-6-
Market targeting
ƒ Reform the current
team, establish a
Mass market：current
sales team
collection and
“Orphan” policy market：
collection and repeat sale
team
end team
repeat sale team,
expand the high-
ƒ The three sales
groups fully cover
major markets,
High net-worth market:
High-end sales team
ensuring balanced
and focused
business
development
-7-
Combining strategies to drive growth
Strategy
combination
Marketing
Strategy
Key initiatives
Plan
promotional
events
Demanddriven
Examples
‡ Launch “Affinity with China Life” promotional plan
‡ Plan “insurance in neighborhoods” related activities
‡ Plan for China Life “Client Date”
‡ Olympic-related incentive plans
Channel
strategy
Sales
access
Organize team
bonding
activities
Enhance longterm
motivation
plans
‡ Company-wide video agent morning briefing
‡ Annual summit for sales over- performers
‡ Stock appreciation rights for star agents
‡ Reward program combined with agent pension
products
‡ Medical insurance to sales team
-8-
Standardize operations and improve efficiency
“Jin Ding Project”
3. Distribution network
1. Individual agent
Agents:
Appointments, interviews, prospect
information, proposal
Supervisors:
Customized support, joint visit，
telephone review, follow up
Build a management
structure and improve
productivity
Cross training
Sales office:
Provide logistical and
administrative supports
and trainings,
motivation, etc.
Learning through sharing
knowledge among the
sales teams, implement
standard operational
model
Streamline workflow
Standardize and quantify
company objectives,
process management to
enhance efficiency of the
whole network
2. Agent group
-9-
Innovative sales support
Sales Support System
Web Audio-visual System for Sales Outlets
Leverage advanced IT
capabilities, professional
experience, agent channel
development
Agent Recruiting and Selection System
Agent Activity Management System
- 10 -
Demands-driven product packages
2006
ƒ Demanddriven mass
marketing
ƒ Promoting
sound
insurance
concepts
Urban
District
s
2004
Upscale
End
2003
Rural
Areas
ƒ Focusing on
regularpremium
development
- 11 -
Topics
„ Individual agent channel
„ Sales management strategy
„ Agent training and motivation
- 12 -
Solid education and training
Career path
Levels
Qualification
exam
Educational
requirement
New Recruit
Agent
Team manager
• Professional and ethical •Career training
standards
•Career orientation,
•Management skills
exam prep course, on•Need-based marketing
duty training, assisted
• Agent recruitment
prospecting,
•Prospects identification skills
continuous training,
•Telemarketing and client •Meeting skills
etc.
service
•Full event management
•Agent Qualification
Exam
•Financial advisor exam
•Designation exam
• CIAM
Junior College, University, MBA (affiliated with Peking University and
Insurance Career College), China Life E-learning College
- 13 -
Comprehensive training system
Structured
program
Comprehensive
program of 63 courses
(1,673 hrs) covering
policy marketing,
business
management, financial
management and
teaching methods
Nonstructured program
“Jin Ding Project”,
trainer’s skills
contest, workshop
and seminar on new
products, sales
experience sharing
Overseas program
Industry credential
including CIAM since
2004， 600 team
managers have
enrolled in the Level
III courses
The company has established a comprehensive training and career
development courses to provide multi-level training for agents,
team managers, agent trainers, agent supervisors and other staff.
- 14 -
Ways to attract and retain agents
Main incentives
•Agent management System
•Elite Agent Club
•Pension and health
insurance coverage
•Performance ranking and
rewards
•Other theme events
• “Dual Star” Conference
Industry
Motivation system
Company
•Stock Appreciation Rights
• Chinese Insurance
Conference
• Annual Dragon
Conference
• MDRT
• IQA、IAP
- 15 -
•Long vs. short-term
incentives
•Industry recognitions
and internal rewards
Long-term Incentive Schemes
Compensation Structure
Incentive Structure
Commission
Performance
appraisal
• Individual
and/or team
FYC, renewal
premium
collection
rate, team
structure
Compensation
New recruits
• Individual: FYC,
renewal commission,
awards
• New recruit training
allowance
Retained agents
Junior manager
• Management
allowance, base
salary
Middle
management
• New recruit
allowance
Senior
management
A competitive income and career development path will motivated
agent managers to build a strong agent team
A fair commission and incentive structure retains and develops a
stable sales force
- 16 -
Incentive