China Life Insurance Co. Ltd. Class A · SSE:601628
China Life Insurance Co. Ltd. Class A — 2020 Corporate Day
64 slides from China Life Insurance Co. Ltd. Class A's conference presentation, Dec 7, 2020
Slide 1: 2020 Corporate Day
2020 Corporate Day 8 December 2020 Beijing
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: Contents
Contents 01 Overview of Return Measures and outcome of the Digoxin Project 02 Progress of “Yi Ti Yuan” Sales Recognitions Reform 03 China Life Technology
Slide 4: Overview of Reform Measures and Outcome of the Dingxin Project
Overview of Reform Measures and Outcome of the Dingxin Project SU Hengxuan, President
Slide 5: Strong Performance since the Reform
Strong Performance since the Reform Gross Written Premiums New Business Value First Year Regular Premiums RMB 100 million RMB 100 million +16.0% +23.7% +12.1% 5,435.5 1,060.5 4970.5 990.5 4685.3 946.1 Sep 30, 2018 Sep 30, 2019 Sep 30, 2020 Sep 30, 2018 Sep 30, 2019 Sep 30, 2020 Sep 30, 2018 Sep 30,
Slide 6: Became Largest Listed Life Insurer Worldwide by Market Value
Became Largest Listed Life Insurer Worldwide by Market Value Total Market Value Nearly Doubled since 2018 2019-2020’s 2019 USD million Trusted Life Best Investment Value Award +94.9% Insurance Institution for Hong Kong Listed Companies 240,000 180,000 151,110 2019 124,913 120,000 Best Listed Company
Slide 7: Remain True to Our Original Aspiration
01 Remain True to Our Original Aspiration
Slide 8: Dingxin Project: Fully Implementing the China Life Revitalization Blueprint
Dingxin Project: Fully Implementing the “China Life Revitalization” Blueprint Mission & Vision Protect the Good Life, Build A World-class Life Insurance Company Revitalize China Life and Achieve Sustainable Growth Development Goals “Three Major Transformations” Core Strategy “Dual Centers & Dual Foc
Slide 9: Dingxin Project: Fully Implementing the China Life Revitalization Blueprint
Dingxin Project: Fully Implementing the “China Life Revitalization” Blueprint “Three Major Transformations “Dual Centers & Dual Focuses” “Asset-Liability Interaction” We will Continue to Optimize The Project is Further Advanced and Improve the Reform to and the Operational Achieve Sustainable Growth
Slide 10: Studiously Carry Out the Project
02 Studiously Carry Out the Project
Slide 11: Sales Deployment: From Three Major Channels to Yi Ti Duo Yuan
Sales Deployment: From Three Major Channels to “Yi Ti Duo Yuan” Create a Customer-centric Sales Deployment Gross Written Premiums and Business Value Grew Rapidly • “Yi Ti”: Focus on the retail market and create systematic reorganized sales team; Gross Written Premiums Value of Half Year’s Sales • “D
Slide 12: Improve Investment: From Assets Class Focus to Strengthening Allocation Coordination
Improve Investment: From Assets Class Focus to Strengthening Allocation Coordination Improve Market-oriented Investment Management System Organizational Structure • Rebuild investment management system along the On Managers Level ? On Accounts Level investment value-added chain; • Establish a market
Slide 13: Efficient Operation: From Centralized Management to Integrated and Intelligent Operations
Efficient Operation: From Centralized Management to Integrated and Intelligent Operations Strengthen Intelligent Operation Paperless Application Rate of Rate of Intelligent Retail Customers Underwriting by Sep 30, 2020 by Sep 30, 2020 • Strengthen the online and intelligent operation of the whole bu
Slide 14: Services Upgrade: Building a Convenient, Premium and Friendly Service Brand
Services Upgrade: From Timely Responses to Building a “Convenient, Premium and Friendly” Service Brand More Convenient Service Process • Launch “Online Customer Service Agent” and “Mobile Automatic Policy Administration Counter Services” to provide efficient services; Approval Rate by Sep 30, 2020 •
Slide 15: Technology Convergence: From Response on Demand to Integration and Innovation
Technology Convergence: From Response on Demand to Integration and Innovation Deepen Technology Integration • Carry out a versatile and agile products development mechanism oriented by different pan-product teams; Digital Field Offices • Send technology teams to the frontline. Directly Reaching the
Slide 16: Strict Risk Control: From Separated Management to Combination of Decentralized and Centralized Control
Strict Risk Control: From Separated Management to the Combination of Decentralized and Centralized Control Comprehensive Risk Rating Strengthen Centralized Control • Achieve a centralized and professional-oriented risk Graded A control model. for the 10th Consecutive Quarter Note: data as of Septemb
Slide 17: Asset-Liability Interaction: Continuously Optimize the Operating Mechanism
Asset-Liability Interaction: Continuously Optimize the Operating Mechanism and Improve the Company’s Development Capabilities Interacted Asset and Liability Management Assets Investment Product Development Management Improve the organizational structure, decision-making process and division of respo
Slide 18: Mechanism-driven: Adhere to Market Orientation to Revitalize Operations and Management
Mechanism-driven: Adhere to Market Orientation to Revitalize Operations and Management Organizational Management Resources Allocation Talent Incentive Implement classified and hierarchical Allocate more resources to field Explore to build a market-based compensation management of organizations; offi
Slide 19: Move on a New Journey
03 Move on a New Journey
Slide 20: Start a New Journey of High-quality Development
Start a New Journey of High-quality Development Subject: Development Goals: High-quality Development Revitalize China Life and Achieve Sustainable Growth Maintain Strategic Consistency Continuously Deepen the Reform Embrace the New Era Three Major Transformations Consolidate achievements of “Dingxin
Slide 21: Continue to Deepen the Reform on a Brand New Start
Continue to Deepen the Reform on a Brand New Start Improve Development Quality Improve Efficiency of Resources Utilization Strengthen Innovation and Empowerment • Further optimize business mix and quality; • Advance precise allocation of resources; • Innovate business model and incubate new business
Slide 22: Remain True to Our Original Aspiration and Mission of the Company
Remain True to Our Original Aspiration and Mission of the Company 1 ‘1 *~.A,~ “ CHINA LIFE Protect the Good Life, Build a orld-class Life Insurance Company! 22
Slide 23: Yi Ti Duo Yuan Sales Reorganization Progress of Reform
“Yi Ti Duo Yuan” Sales Reorganization Progress of Reform ZHAN Zhong, Vice President
Slide 24: Dingxin Project Building New Sales Landscape
Dingxin Project Building New Sales Landscape Implemented “Yi Ti Duo Yuan” around the Strategic Core of “Dual Centers & Dual Focuses” to Strengthen the Growth Momentum Clear Channel Restructured Optimized Positioning the Organization Staff Structure Optimized Explored Adjusted Policy Upgraded Resourc
Slide 25: Integrated Sales Resources in a Customer-centric Approach
Integrated Sales Resources 01 in a Customer-centric Approach; Enhanced Service Capability
Slide 26: Yi Ti Duo Yuan Sales Reorganization Clarified Channel Positioning
“Yi Ti Duo Yuan” Sales Reorganization Clarified Channel Positioning Individual Agent Channel Key contributor to business value Building core competitiveness Individual Customers (Yi Ti) Bigger and Stronger Group Insurance Channel Bancassurance Channel Maintain market position Focus on both scale and
Slide 27: Focused on Individual Agent Business and Implemented Organizational Change
Focused on Individual Agent Business 02 and Implemented Organizational Change; Improved Professional Management Capabilities
Slide 28: Integrated the Sales Teams and Management Force
Integrated the Sales Teams and Management Force Group and Institutional Customers Individual Customers (Yi Ti) (Duo Yuan) Teams servicing individual customers were Healthy Development integrated into the individual agent business sector of Teams Being Integrated Bancassurance Group Insurance Product
Slide 29: Restructured Organization and Strengthened Management
Restructured Organization and Strengthened Management Individual Agent Business Center Forming New Landscape of Individual Agent Business Sector Planning Training • Team Differentiation Business Upsales Individual Operations Individual Individual Financial • Professionalization of Management General
Slide 30: Optimized Resources Allocation and Dynamic Management
Optimized Resources Allocation and Dynamic Management Implemented Organizational Classifications: Differentiated Resources Allocation per Value Creation Capability of Branches at Different Levels, Tilting towards Key Markets and Key Institutions. Branch Classification Grade Differentiated Allocation
Slide 31: Strengthened Staffing at Front-end
Strengthened Staffing at Front-end Optimized Mid and Back-office Efficiency and Improved Customer Services through Technological Empowerment and Centralized Operations, Relocating More Personnel to the Front-end Number of Management Personnel in the Individual Agent Business Sector increased by 24%
Slide 32: Centered on Basic Operational Units; Upgraded Management and Effectiveness
03 Centered on Basic Operational Units; Upgraded Management and Effectiveness
Slide 33: Systematic Deployment and Specialized Operation Strengthened Basic Operational Units
Systematic Deployment and Specialized Operation Strengthened Basic Operational Units Systematic Deployment Specialized Operation Market-oriented Incentives Multi-tiered regional layout Implemented Basic Guideline Implemented differentiated incentives Appr. 30,000 sales offices/outlets, for Managing
Slide 34: Optimized Training, Integrated Comprehensive Financial Services to Support the Frontline
Optimized Training, Integrated Comprehensive Financial Services to Support the Frontline Empower Sales with Professional Training Support Sales with Comprehensive Financial Services Upgraded the Multi-tiered Training System Supported Joint Marketing New Agents Training: Agent Manager Training: Coord
Slide 35: All-round Empowerment with Upgraded Technologies
All-round Empowerment with Upgraded Technologies Smart Tool Support Precise Customer Management Online tools such as smart insurance “Golden Manual 2.0”: planning, policy health check, AI family used AI technology and big data to insurance and E-recruitment improved the decipher customer needs, offe
Slide 36: Focused on New Business Value; Upgraded Operation in Urban and Rural Areas
Focused on New Business Value; 04 Upgraded Operation in Urban and Rural Areas and Enhanced Value Creation Capabilities
Slide 37: Optimized Mechanism and Focused on Value Creation
Optimized Mechanism and Focused on Value Creation KPI Holds NBV at its Core Resources Allocation is Based on Value Contribution • Performance assessment of institutions is based on NBV-related • Allowable operating expenses of indicators. institutions are linked to NBV and profit • Mid-and back-offi
Slide 38: Optimized Product Strategy to Promote Sustainable Value Growth
Optimized Product Strategy to Promote Sustainable Value Growth Product Design: Customer-centric Center around customer demands and balance the interests of the customers, company and sales team. Product Launch: Based on Customer Demands Promote Sustainable 2+1 product strategy, i.e. product package
Slide 39: Advanced in Both Urban and Rural Areas
Advanced in Both Urban and Rural Areas, Consolidated Advantages and Sought Breakthroughs KEY CITIES RURAL MARKET Favorable Policies and Deployment in Key Counties Resources to Boost and Townships to Growth Momentum Consolidate Advantages • Implemented Three-year Action Plan for Key City Branches • I
Slide 40: Business Performance of Individual Agent Business Sector
Business Performance of Individual Agent Business Sector The New Integrated Individual Agent Business Played a Vital Part, Overcoming Dire External Challenges. Business Structure Value Growth Sales Force Key Areas Further Optimized Further Enhanced Foundation for Development Solidified Enhanced Comp
Slide 41: Holistic and Comprehensive Planning; Excellence in Diversified Business Channels
Holistic and Comprehensive Planning; 05 To Achieve Excellence in Diversified Business Channels
Slide 42: Consolidated and Upgraded Traditional Advantageous Channels
Consolidated and Upgraded Traditional Advantageous Channels Group Insurance Channel Transforming Diversified Channels • Improve on profitability. Professional Management Specialization and competitiveness Bancassurance Channel • Focus on bank agency business and increase NBV. Improve Quality and Eff
Slide 43: Actively Explored New Channels
Actively Explored New Channels Innovation in Online Life Insurance Securities Fund Sales Business Positioning: Explore and Innovate the Business Positioning: Provide more Abundant Financial Model of Online Insurance, to Empower Core Products and Services to Meet Customer Business and Prepare for the
Slide 44: Development Results of Diversified Businesses Sector
Development Results of Diversified Businesses Sector Group Insurance Bancassurance Health Insurance Business • Strong market share • Regular premiums maintained industry • 220 Supplementary Major Medical Expenses • Significant improvement in profitability leading market share Insurance Projects, cov
Slide 45: Plans for Next Stage
06 Plans for Next Stage
Slide 46: Dividends Being Released as Reform Rolls Out
Dividends Being Released as Reform Rolls Out Regional Market Sales Force Customer Upgrading Specialized Operation Exploitation Quality Improvement Comprehensive Technological Market-oriented Financial Services Empowerment Mechanism 46
Slide 47: Follow the Overall Plan, Maintain Strategic Consistency, and Press Forward
Follow the Overall Plan, Maintain Strategic Consistency, and Unswervingly Press Forward Overall Plan of Reform: Lay the Foundation in the First Year; Build the Framework in the Second Year, and See Concrete Results in the Third Year Reform of “Yi Ti Duo Yuan” is just a beginning. The transformation
Slide 48: China Life Technology
China Life Technology RUAN Qi, Vice President
Slide 49: The Principle, Mechanism & Acting Point
The Principle, Mechanism & Acting Point
Slide 50: Principle
Principle Based on Pool-intelligence, Agility and Iteration, China Life Technology Facilitates Rapid Execution of the Company’s Strategy Business-Driven Deeply Integrated Core Business Empowerment Asset-Liability Continuous Innovation Interaction 50
Slide 51: Mechanism
Mechanism The Customer-oriented Technology Product Responsibility System is the Core Mechanism of China Life Technology, which Enables a Comprehensive and High Integration of R&D and Business Operation (DevOps). CEO Office Network Security and IT Committee Digital Sales Core Trading Pan-product Deve
Slide 52: Acting Point
Acting Point Establishing Platform-based Business Capabilities is the Acting Point of China Life Technology. The Company Leverages Digitalized Platform to Converge Ecosystem Resources, Connect Personalized Consumers, and Realize Commercial Values. Personalized Platform Business Ecosystem Consumer Ca
Slide 53: Execution
02 Execution CHINA LIFE
Slide 54: Offline Digitalized Workplace
Offline Digitalized Workplace • Through automatic Internet connectivity, intelligent perception and digital presentation, the 30,000 workplaces1 around the country are transformed into important offline flow entries, and serve as the clients’ experience and fellowship centers, agents’ startup and ma
Slide 55: Online Digital Platform
Online Digital Platform • Relying on the offline digital workplace, the Company built the online digital platform (EAC), which could fully integrate the Company’s existing advantages, combine the online and offline closely, and push forward digital transformation. • Using the EAC platform to effecti
Slide 56: Open-ended Structure
Open-ended Structure • The three centers in Beijing and Shanghai form a proprietary cloud network which is seamlessly integrated into public cloud resources in a multi-active way, with which a safe, green and flexible hybrid cloud model has been established, greatly improving data security and compu
Slide 57: China Life IoT
China Life IoT • Integrating the technologies of cloud computing and edge computing, China Life IoT was built in accordance with the model of “powerful back-end + light front-end”. It comprehensively connects and integrates the front and back end computing resources to provide strong computing suppo
Slide 58: Applications
Applications • Effectively managing the huge amounts of long-duration data, the platform offers more than 1,700 services in 6 categories covering the entire business chain. Branches at all levels can make their own choices and combinations. Synergy Sales • Intelligent reporting • Live and On-demand
Slide 59: Achievements
03 Achievements CHINA LIFE
Slide 60: Intellectualization
Intellectualization • Through the accumulation of historical data and the connectivity of the Internet, the company has gathered a large amount of data resources and laid a solid foundation for intelligent operations. • AI technology is fully integrated into all aspects of the Company’s operation an
Slide 61: Visualization
Visualization • High-speed Internet access throughout the workplaces makes the real-time and visualized management of the Company on all fronts possible. Using cloud-streaming, big data and multi-screen interactive technologies, 26,000 production units and more than 3,600 command centers have been l
Slide 62: Virtualization
Virtualization Achieve full virtualization from back-end processing to front-end delivery, fully integrating virtual technologies • Back-end: Built a software-driven multi-activity data center to realize automated allocation of computing resources. While significantly reducing energy consumption and
Slide 63: Socialization
Socialization • With the Internet as our technological foundation, and leveraging its openness and connectivity, we have established an enterprise social ecosystem which helps synergize internal, external, upstream and downstream partners through social networking, realizing interactive and win-win
Slide 64: Technology-driven China Life
Technology-driven China Life