Transcript Presentation - International Insurance Society

Leadership in life insurance
July 2008
Agenda
Indian life insurance opportunity
Organisational overview
Integrated framework
2
Agenda
Indian life insurance opportunity
Organisational overview
Integrated framework
3
One of the fastest growing economies
12.0%
GDP growth rates (2007)
11.4%
10.0%
9.0%
7.7%
8.0%
6.3%
6.3%
6.0%
5.0%
4.0%
3.1%
2.2%
2.1%
US
Jap an
2.0%
0.0%
China
Ind ia
Sing ap o re
M alaysia
Ho ng
Ko ng
Ko rea
UK
India: FY 2008, Others: calendar 2007
Source: International Monetary Fund and the Central Statistical Organisation
4
Indian economy: Key drivers of growth
10.0
9.0
9.4
9.0
9.0
GDP growth(% )
8.0
7.5
7.0
CAGR
during
1990s: 5.2%
6.0
5.0
4.0
3.0
2.0
1.0
0.0
FY 2005
5
FY 2006
FY 2007
FY 2008
Services sector
growth
Industrial sector
momentum
Globalisation
Favourable
demographics
Knowledge capital
Rural potential
Increasing proportion of working population
(Age
group)
65+
2006
2026
(percentage of population)
32
Source: Census of India
6
To further fuel India’s growth
and rising disposable
income levels
69  Shift towards nuclear
63
15-64
0-14

8
5
families
 Increased savings and
protection needs
23
Evolution of industry since liberalisation
FY 2000
FY 2008
Number of players
1
18
NB premium ($ bn)
1.49
CAGR of 40%
21.62
Total premium ($ bn)
6.27
CAGR of 28%
45.34
Penetration (as a
% of GDP)
1.2%
4.4%
Insurance premium
per capita ($)
~6.51
~39.53
Source: IRDA, Swiss Re
7
Agenda
Indian life insurance opportunity
Organisational overview
Integrated solution
8
Business context…our growth story
March
2006
March
2007
March
2008
2.31
4.46
7.75
0.50
1.01
1.51
Branches
177
583
1,956
Employees
7,704
16,317
29,216
# of policies
(in mn)
New business
(in $ bn)
Sustained private market leadership for 7 years
Fitch rating of ‘AAA (Ind)’
Awarded most respected private life insurer
9
Key strategic elements
Brand
Scale

Creation of a superbrand

Pan India presence
Rapid expansion of agency
 Multi-channel platform
Distribution

Product

People

Comprehensive portfolio
 Innovative & flexible products
Talent from diverse industries
 Career programs
Drive growth profitably
10
Agenda
Indian life insurance opportunity
Organisational overview
Integrated framework
11
External challenge

External:

Supply demand mismatch
3.7 mn jobs expected to be created in services sector
alone (next 2 years)
 Scarce insurance sector specific skills


Younger workforce
Wage inflation
Wage increases
highest in the world
12
Job inflation
Incumbents
working 1-2 levels
below their
intended levels
Attrition
High attrition esp. at
frontline
Internal challenge

Hypergrowth


Scale


Increasing presence in tier II & tier III towns and
cities across India
Competency requirements:

13
Sustained growth of ~40%
New lines of business (health etc.)
Readiness risk
Assimilation
risk
Fitment risk
Risk of
underdeveloped
incumbents
Risk of slow learning
in new roles
Wrong person for
the job
The framework
Organisation
design
Performance
Organization
DNA
Effectiveness
Knowledge
management
14
Attrition “agnostic” strategies
Talent
management
Organisation design

Align people to overall goals of the organization
through balanced scorecard

Ensure clarity through metrics (KPIs)



15
Track it through automation
Aggregate roles under functional “centres of
excellence”

Shared services model

Centralization of roles
Drive automation in people processes to
manage scale
Knowledge management

Ensure “skill ready” supply base – instead of
focusing on hire & train, change it to train & hire



16
Insurance specific courses
Adopt enabling automation

De skill the jobs without affecting productivities

Aid in decision making through dashboards
Invest in “job ready” training & certification
Talent management

Differentiate performance



Through rewards
Clear career paths…to enable growth internally
Phase out poor performers
Solid
contributors
High performers
Poor
performers
15%

30%
25%
Leaning Toward
Disengagement
Neutral
Leaning Toward
Engagement
10%
Identify “talent pool “ based on potential–
leadership competencies


17
20%
Cast a wider net
Cultivate a “talent scout” mindset among managers
Talent management

Interventions for the “talent pool”




Design roles around people’s strengths
Diagnose development and have candid
conversations with people
Keep people challenged through roles on an ongoing
basis
Talent as an organization resource – enterprise wide
visibility
Inculcate a strong proposition of learning & growth
18
Thank you
19