China Life Insurance Co. Ltd. Class A · SSE:601628
China Life Insurance Co. Ltd. Class A — Corporate Update (October 2023)
37 slides from China Life Insurance Co. Ltd. Class A's corporate update, Oct 30, 2023
Slide 1: Progress | Integration | Prospects: Individual Sales System Reform
Exhibit 99.4 PROGRESS | INTERGRATION | PROSPECTS Individual Sales System Reform Tianjin 2023.10.31
Slide 2: Forward-Looking Statement
FORWARD-LOOKING STATEMENT Certain statements contained in this presentation may be viewed as “forward-looking statements” as defined by Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. Such forward-looking statements involve know
Slide 3: Building a World-Class Life Insurance Company
Building a World-Class Life Insurance Company Refining management Transformation and Start-up system upgrades Strived to develop regular premiums Steadily promoted the Introduced individual business and risk-based business, innovation-driven development agent system with premiums from individual age
Slide 4: Origin
Origin
Slide 5: Regulatory Guidance
Regulatory Guidance 2022.11 2023.10 2023.09 Notice on Strengthening the Opinions on Further Improving Management for Promoting Measures for the the Individual Agent System of Stable and Healthy Administration of Insurance the Life Insurance Industry Development of Life Sales Activities (Consultation
Slide 6: Market Evolvement
Market Evolvement Influence of the Diversified Rational 01 02 03 Internet on Client Needs Decision-making Information Access The post-80s and post-90s When choosing financial products and 44% 51% generations have become the services, 44% make independent decisions based on their own experience main
Slide 7: Industry Trends
Industry Trends Peer Competition Channel Financial Sector Competition Competition Emerging channels including Leading insurance companies Banks, brokerages, funds, bancassurance, intermediary have started to innovate their and family offices make brokers, and the Internet are agent channels and driv
Slide 8: Development Requirement
Development Requirement Market Background: Talent dividend Core Drivers: Professionalism + Service Market Background: Demographic dividend Change of Development Model: growth engine Upgrading of protection and Core Drivers: productivity-driven growth Sales + Product Second growth curve Development M
Slide 9: Progress
Progress
Slide 10: China Life's individual agent system reform
China Life‘s individual agent system reform follows regulatory guidances, responds to market demands, leverages its own strengths, and optimizes the fundamentals with the support of its ecosystem and technology, through measures such as structural adjustment, foundation reinforcement and rural area
Slide 11: Reform Principles
Reform Principles Client-centric Breakthrough Approach through Innovation Making Progress Coordinated while Maintaining Development Stability 11
Slide 12: Reform Direction
Reform Direction Specialization Professionalism Integration 12
Slide 13: Reform Details
Reform Details Building a World-Class Life Insurance Company Six measures to establish new agent team 1.1 1.2 1.3 New positioning New framework New system 1.4 1.5 1.6 New sales Mode New empowerment New development Six measures to upgrade existing sales force 2.1 2.2 2.3 Agent development Structural
Slide 14: Integration: Reform Measures
Integration\ _ Reform Measures
Slide 15: Six Measures to Establish New Sales Team (Seed Plan)
Six Measures to Establish New Sales Team (Seed Plan) New New Development Positioning New New Framework Empowerment New System New Sales Mode 15
Slide 16: New Positioning
New Positioning ◼ Goal: To become a long-term partner in safeguarding the health and wealth of people, Seed Plan serving their pursuit of a better life, and upgrading their protection. ◼ Positioning: Adhere to the concept of specialization, value and integration; build up Financial Life Planner new
Slide 17: New Framework
New Framework Manager Operation manager of production units Transitioning from multi-layer to flat organizational structure Partner Transitioning from one person Team operation taking multiple responsibilities manager to specialization Planner 合伙人 Integrated financial & insurance service provider 17
Slide 18: New System
New System Lift recruitment standards 18 18
Slide 19: New Sales Mode
New Sales Mode Search for clues 1 Create unique sales Provide multi- Client access and model dimensional values 2 acquisition and trust 1 building Integration of scenario Pre-sales risk mitigation, marketing, content precise decision-making Goal Setting production and technology during sales, and af
Slide 20: New Empowerment
New Empowerment Comprehensive Precise Market-oriented Provide supports based Form a pattern of Accurately match the on commonality + encouraging experience target, content and personality , and build output and mutual timing of empowerment a steadiness + empowerment through with intelligent agility
Slide 21: New Development
New Development Breakthrough of circles Direct recruitment Adhere to high standards “Company recruitment” + Undergraduates from universities “individual recruitment” in first-and second-tier cities Direct recruitment of agents Management model adaptation Integrated operation Establish a management O
Slide 22: Six Measures to Upgrade Existing Sales Force
Six measures to Upgrade Existing Sales Force (Sales Channel Strengthening Program) Service Structure Upgrade Upgrade Sales Agent Upgrade Development Foundation Regional Upgrade Upgrade Upgrade 22
Slide 23: Structure Upgrade
Structure Upgrade Upgrade team structure and strengthen professional competence Optimize productivity structure Optimize age structure Zhongxin Project, Team Building 4.0, Evergreen Project and Star Project 2.4 pps 7 Percentage of medium-to-high Pilot branches productivity agents increased Optimize
Slide 24: Agent Development Upgrade
Increase income Implementation at work Enhance skills Professional training Increase activities Standardization Acquire clients Technology support Agent Development Upgrade Upgrade training and empowerment, and innovate new agent development Build a new generation of Standardized premiums profession
Slide 25: Foundation Upgrade
Foundation Upgrade Upgrade management and strengthen operational units Field offices upgrade plan Build self-operated, efficient, healthy and sustainable field offices Tutoring and Goal Activity 6% management management training Average productivity of field offices Improve Income Self- Plan Personn
Slide 26: Regional Upgrade
Regional Upgrade Upgrade county and rural operations and deeply explore lower-tier markets Differentiated Strategic Clear model distribution ＋＋ positioning Standardized premiums YoY First-year regular premiums YoY FYRP with 10y+ payment duration YoY 3% 8% 10% 26
Slide 27: Sales Upgrade
Sales Upgrade Upgrade sales model to match client demands Implement day-to-day client management Deepen diversified Digital support for system sales model the whole process 80 million + 350 130,000 All institutions covered Sales leads pushed Daily average number of agents serviced 27
Slide 28: Service Upgrade
Service Upgrade Provide a full range of services to support sales No.1 in the RMB170 99.7% million industry Regulator Claim acceptance Daily claim assessment on rate settlement consumer protection 28
Slide 29: Blueprint for the New Team, Upgrading of Existing Teams
Blueprint for the New Team, Upgrading of Existing Teams; Complementing Each Other 29
Slide 30: Ecosystem and Technology Support Reform and Development
Ecosystem and Technology Support Reform and Development 30
Slide 31: Products and Services Ecosystem
Products and Services Ecosystem Wealth Accompany clients at life milestones and serve them throughout the whole life cycle Provide matched financial and insurance products and services to families Property Parenting Marriage Retirement Heritage purchase Offer ecosystem services to enhance the sense
Slide 32: Empowerment of Sales with Technology
Empowerment of Sales with Technology Ling Xiao Platform Ling Yu Platform Social media channels Video Planner Client Material Continuous （A） （C） Financial WeChat service consultation TikTok Information Strategy Risk Risk Kuaishou compensation mitigation Creation Precise Financial Course decision plan
Slide 33: Prospects: Outlook of Reform
Prospects utlook of Reform
Slide 34: Eight Reform Programs
Eight Reform Programs Accelerate reforms in quality, efficiency and driving forces PARTY BUILDING TALENTS DEVELOPMENT SALES CHANNEL FOUNDATION PROGRAM PROGRAM STRENGTHENING PROGRAM INTEGRATED SALES CLIENT RESOURCES GOVERNMENT-CORPORATE SYNERGY PROGRAM MANAGEMENT PROGRAM COLLABORATION PROGRAM HEALTHC
Slide 35: Reform Outlook
Reform Outlook 2023 2024 2025 Research & Pilot Expansion Design 2025 Establish new sales team under Upgrade existing agent teams under Seed Plan Sales Channel Strengthening Program Drive expansion with 3-5 New policies productivity per agent increased by demonstration projects 30% compared with 2022
Slide 36: Those Pro-actively Reform Progress; Those Stand Still Regress
Those Pro-actively Reform Progress; Those Stand Still Regress. 20 Years of Concerted Efforts; The Beginning of a New Journey. 36
Slide 37: Thank You
—_, - THANK YOU - Fezome
China Life Insurance — Corporate Update (October 2023) on 6ix