International Business An Asian Perspective By Charles W.L. Hill Chow-Hou Wee Krishna Udayasankar.
Growth Strategy in Asian Business€¦ · Business” and the “International Life Insurance...
Transcript of Growth Strategy in Asian Business€¦ · Business” and the “International Life Insurance...
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Growth Strategy in Asian Business
Hideyuki Tanaka Managing Executive Officer
Mitsui Sumitomo Insurance Company, Limited
October 15, 2019
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Agenda
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Toyota retail Telematics / Mobility
Asia
MS Amlin
Reinsurance at HO
International Non-Life Insurance
International Life Insurance
International Business of
MS&AD Group
The International Business of MS&AD Group consists of the “International Non-Life Insurance Business” and the “International Life Insurance Business”. Today’s presentation is focused on “the Asian Business“ of the International Non-Life Insurance Business segment.
Europe and Americas
1. Features of the Group’s Asian Business 2. Growth Potential and Challenges in the Asian
Insurance Market 3. Current Situation of the Asian Business and Outlook 4. Growth Strategies
(1) Improvement of Profitability (2) Retail Market (3) Commercial Market and Infrastructure Business (4) Emerging Countries
5. Looking ahead to the Future of Asia <Appendix> Changes in the Combined Ratio
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1. Features of the Group’s Asian Business
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Ever since the Group expanded into the Thai market in 1934, we have been building the network that enable to provide the insurance products to all countries in ASEAN region on the stable business foundation. Now the Group has established its strong presence in Asia.
Wide Customer Base
built through 85 years of operation 180,000 corporate customers,
1.53 million individual customers
Strong Presence
Ranked first in terms of premiums written in the ASEAN region*
Network covering the Entire Area ・A network of local companies and branches in all
ASEAN member states that can provide direct insurance ・Alliances with major local partners
Diversified Portfolio Breakdown of GWP in Asia (2018)
No. 2
No. 3
MS&AD 176 billion yen
A (Japan) 146 billion yen
B (France) 98 billion yen
No. 1
Note : * Total premiums written in six major countries (Singapore, Malaysia, Thailand, Indonesia, The Philippines, and Vietnam).
Channels ** Note :**Excluding The Philippines, Laos,
Myanmar, South Korea and Sri Lanka
Brokers, 30%
Agencies, 24%
Direct,13%
Other 11%
Bancassu-rance11%
Dealers, 11%
Classes
Graph1
自動車自動車自動車自動車自動車
火災火災火災火災火災
その他その他その他その他その他
マリンマリンマリンマリンマリン
賠償責任賠償責任賠償責任賠償責任賠償責任
医療医療医療医療医療
農業農業農業農業農業
GWP
AUS
NEZ
除くオセアニアGWP
自動車 火災 その他 マリン 賠償責任 医療 農業
Auto, 44%
Fire,23%
Other,12%
Marine, 9%
Casualty,5%
Medical,5%
Agri,2%
0.4355790544
0.2273266953
0.1203989845
0.0874186099
0.0537445575
0.0538290725
0.0217030259
Sheet1 (2)
グラフ1グラフ2(百万円) ヒャクマンエングラフ3
国別割合GWP種目別GWPAUSNEZ除くオセアニアGWP割合販売チャネル別GWP割合
インド34.3%71,046火災Property59,1641,91153156,72230.8%ブローカーBroker83,16148.5%端数
シンガポール30.9%63,978自動車Motor56,0034993955,46530.2%端数代理店Agent36,21321.1%
マレーシア20.4%42,220その他others28,2393,4342924,77613.5%直販Direct26,48215.4%
タイ16.1%33,357マリンMarine21,1272792020,82811.3%ディーラーAgent Dealer11,7226.8%
中国11.3%23,337賠償責任Liability16,0353214115,6738.5%バンカシュアランスBancassurance10,8666.3%
香港7.8%16,173医療Healthcare10,519- 010,5195.7%その他(再保険含む)Others(incled RI)3,2481.9%
インドネシア5.8%12,020端数191,0876,444660183,983100.0%171,692100.0%
フィリピン5.8%11,922
ベトナム1.9%3,940中国現法中国現法
その他0.2%368<種目別> シュモクベツ(通貨:億円) ツウカオクエン<チャネル別> ベツ
100.0%207,315種目別火災 カサイ41.424142.14164販売チャネル別 ハンバイベツ直販 チョクハン616,086.83
マリン24.442443.70382ブローカー292,863.49
賠償責任 バイショウセキニン16.381637.76381代理店 ダイリテン2241.19
船舶11.811180.69518その他(受再) タウサイ14114,145.08
自動車 ジドウシャ129.1512915.22584合計23323,336.60
その他 タ10.171017.10428
ミャンマー0.0%57合計 ゴウケイ233.3723336.63457
ラオス0.2%311
インド現法インド現法
<種目別> シュモクベツ(通貨:億円) ツウカオクエン<チャネル別> ベツ
<2018年度グロス保険料ベース内訳数値> ネンドホケンリョウウチワケスウチ種目別 シュモクベツ自保賠償314.54480.1031454.4チャネル別 ベツバンカシュアランス20020,000.00
自保車両165.5516555.2ディーラー10610,600.00
医療44.004400代理店 ダイリテンSMO(リテール代理店) ダイリテン12024824,800.00
マリン12.001200CIFCO89- 0
火災42.46174.374246.4法人代理店 ホウジンダイリテン39- 0
傷害45.604560その他 タ農業 ノウギョウ7015615,600.00
農業69.906990.4不明(差額) フメイサガク86- 0
その他 タ16.401640合計 ゴウケイ71071,000.00
合計 ゴウケイ654.46710.4671046.4
割合GWP明台 ミンタイ
ブローカー32.4%91,9995,975
合算GWP割合明台 ミンタイ代理店23.8%73,83612,581
自動車140,29744%23,907.3その他(再保険含む)11.4%35,2032,210
火災73,22023%8,109.9直販13.3%41,2218,652
その他38,78012%6,786.6ディーラー10.6%32,79110,469
マリン28,1579%2,504.6バンカシュアランス11.2%34,7063,840
賠償責任17,3115%0100.0%309,75643,727
医療17,3385%2,419.0
農業6,9902%0
322,093100%43,727.3
明台産物 アカダイサンブツ
<種目別> シュモクベツTWD(千) セン(通貨:億円) ツウカオクエン(通貨:百万円) ツウカヒャクマンエンW/T<チャネル別> ベツTWD(千) セン(通貨:百万円) ツウカヒャクマンエン
種目別 シュモクベツ自賠責 ジバイセキ1,033,14137.83,781.38.6%チャネル別 ベツ自動車DL ジドウシャ2,860,32610,46923.9%
自保任意 ジタモツニンイ5,498,904201.320,126.046.0%社員2,176,9207,96818.2%
火災2,215,81281.18,109.918.5%銀行1,049,2303,8408.8%
マリン684,30425.02,504.65.7%個人代理店3,437,56812,58128.8%
工事 コウジ300,75911.01,100.82.5%WEB187,0976851.6%
傷害・医療 イリョウ660,92524.22,419.05.5%ブローカー1,632,4915,97513.7%
その他 タ1,553,50556.95,685.813.0%その他603,7182,2105.1%
合計 ゴウケイ11,947,350437.343,727.3100.0%合計 ゴウケイ11,947,35043,727100.0%
@3.66
Sheet1 (2)
GWP
AUS
NEZ
除くオセアニアGWP
割合 44% 23% 12% 9% 5% 5% 2%
Sheet1
GWP
AUS
NEZ
除くオセアニアGWP
自動車 火災 その他 マリン 賠償責任 医療 農業
医療,5.3%
GWP
AUS
NEZ
除くオセアニアGWP
34.3% 30.9% 20.4% 16.1% 11.3% 7.8% 5.8% 5.8% 1.9% 0.2%
[CATEGORY NAME], [VALUE]
[CATEGORY NAME], [VALUE]
グラフ1グラフ2グラフ3
国別GWP割合種目別GWPAUSNEZ除くオセアニアGWP割合販売チャネル別GWP割合
シンガポール63,97834.8%火災Property59,1641,91153156,72230.8%ブローカーBroker83,16148.5%端数
マレーシア42,22022.9%自動車Motor56,0034993955,46530.2%端数代理店Agent36,21321.1%
タイ33,35718.1%その他others28,2393,4342924,77613.5%直販Direct26,48215.4%
香港16,1738.8%マリンMarine21,1272792020,82811.3%ディーラーAgent Dealer11,7226.8%
インドネシア12,0206.5%賠償責任Liability16,0353214115,6738.5%バンカシュアランスBancassurance10,8666.3%
フィリピン11,9226.5%医療Healthcare10,519- 010,5195.7%その他(再保険含む)Others(incled RI)3,2481.9%
ベトナム3,9402.2%端数191,0876,444660183,983100.0%171,692100.0%
その他3680.2%
183,978100.0%
ミャンマー570.0%
ラオス3110.2%
GWP
割合
[CATEGORY NAME], [VALUE]
GWP
AUS
NEZ
除くオセアニアGWP
割合
[CATEGORY NAME], [VALUE]
[CATEGORY NAME], [VALUE]
GWP
割合
[CATEGORY NAME], [VALUE]
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2. Growth Potential and Challenges in the Asian Insurance Market
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Both GDP and population are expanding in Asia resulting in considerable growth potential. Meanwhile, we have to improve profitability within the severe business environment due to tightening of regulations and intensifying competition.
Growth Potential in the Asian Insurance Market
etc.
Liberalization of premium rates
Strengthening of supervision and
regulations (RBC, money laundering,
IFRS, etc.)
Intensifying competition
Worsening asset management environment
(falling interest rates, etc.)
Frequent occurrences of
natural catastrophes
Business Environment in the Asian Insurance Market
Challenge : Improvement of Profitability
Source:United Nations / World Population Prospects 2019 Source:The World Bank / Global Economic Prospects (June 2019)
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3. Current Situation of the Asian Business and Outlook
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Net premiums written has been growing steadily as a result of organic business expansion, the acquisition of MS First Capital, other M&A and their synergies resulting from M&A.
(100 million yen)
(年度) (Fiscal Year)
Trend in Net Premiums Written
Graph1
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
・・・
2021
CAGR 9.2%
1171
1228
1441
1839
1985
2157
1996
2215
2439
2592
3092
Sheet1
20101,171
20111,228
20121,441
20131,839
20141,985
20152,157
20161,996
20172,215
20182,439
20192,592
・・・
20213,092
2010201120122013201420152016201720182019・・・2021
11711228144118391985215719962215243925923092
Sheet1
Sheet2
Sheet3
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Leading Company In Asia
(Forecast) (Plan)
3. Current Situation of the Asian Business and Outlook
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Growing steadily aiming to become a leading company in Asia
(100 million yen)
(年度)
Expected Net Income in Vision 2021 Period
Note;* Including special factors
* (Fiscal Year)
• Sustain No1 position
in ASEAN region • Build high presence in
all countries in Asia
• Contribute to development of region /society
• Establish credible
brand, rooted in region
Chart1
2017
2018
2019(計画)
2021(見通し)
Net Income
97
299
184
257
Sheet1
Net Income
2010
2011
2012
2013163
2014260
2015127
2016167
201797
2018299
2019(計画) ケイカク184
2021(見通し) ミトオ257
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The Growth Driver for the International Business
4. Growth Strategies
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・Promote initiatives for improvement of profitability as our challenge ・Capture “growth bonus” of population increase and economic expansion with the power of “the MSIG brand”
Retail Market
Pursue strengths and improvement of profitability
Emerging Countries
Tap into growing markets
Collaboration with platformers
Bancassurance
Major local companies
International projects
Digital Solutions
Pursue Group’s Comprehensive Strengths
Alliance with Major Local Partners
and Additional Investments
Commercial Market and Infrastructure
Business Efforts in unexplored fields
Pan-Indian Ocean Economic Zone
Future growth in markets
Improvement of Profitability Through initiatives in improvement of efficiency and cost reduction
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4. Growth Strategies (1) Improvement of Profitability
Accelerate initiatives for improving profitability. This will be achieved by our know-how and our key strengths stemming from the Head Office and our Group Companies
Outline of the Initiative for Improving Profitability
Examples of initiatives for Automobile Insurance
Effect on Net Profit
Improvement of Loss Ratio
Prudent Underwriting
Appropriate Payment of Insurance Claims
Efficient Claims Handling
Efficient Sales Operations
Revision of rate/discount Revision of U/W guidelines
Video Chat
Utilize RPA Sales support systems for car dealers
Improvement of COR by 2% PAT increase of JPY3Bil in Asia
Enhancement of accuracy in checking repair costs
Improvement of Expense Ratio
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Singapore
Tokyo
Silicon Valley
GDH Tokyo
Promote Digitalization through Global Digital Hub (GDH) Singapore, cooperating with GDH Tokyo and MS&AD Ventures in Silicon Valley
・Find and invest into Startups with cutting-edge technologies ・Co-operation/Alliance with MS&AD group companies
GDH Singapore ・Pursue Digitalization in the retail market ・Address market features such as mobile popularization and the increase of digital native
・Promote open innovation ・Develop innovative products/services ・Promote digitalization and educate staff regarding digital knowledge
Block Chain
Robotics Big Data
AI
Utilize Startups which MS&AD invested
Utilize Digital Solution
4. Growth Strategies (2) Retail Market
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4. Growth Strategies (2) Retail Market
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Promote initiatives based on a strong business base in ASEAN countries utilizing digital solutions
Collaborations with Platformers Bancassurance
(Asian countries) Sell insurance products in collaboration with major ride-sharing companies.
(Indonesia, Thailand, Vietnam)
• Online Sales System • Built-in Connect for insurance
marketing, etc.
Digital Solutions
Alliances with major local banks
• The Philippines • Malaysia • India • Vietnam, etc.
AI Assistant (Sales support system using AI)
Built-in Connect (Digital platform for insurance sales)
RisTech (Base for analysis of big data)
e.g. Bank employees’ support of over-the-counter sales of insurance
products in bancassurance
e.g. Incorporate sales of insurance products into mobile applications of
partner banks and for EC
e.g. Analytical customer data base on their bank loans to seek opportunities
to sell insurance products
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4. Growth Strategies (3) Commercial Market and Infrastructure Business
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Collaboration with MS First Capital and MS Amlin Collaboration with Head Office
• Strengthen underwriting capabilities in collaboration with MS First Capital and MS Amlin as well as collaboration with Head Office
• Promote initiatives for infrastructure projects with the development of Asian economy
Pursue Group’s Comprehensive Strengths
Underwriting Capacity Underwriting Expertise MS&AD Global Network
Launch to sell products of Head Office(Credit, Weather, etc.) in Asia
Utilize Group’s U/W Capacity
Propose Global Insurance Programs to Asian Companies, etc.
Promote initiatives for underwriting related to large projects (chemical plants, etc.)
Expand Specialty Insurance marketing. (D&O, Cyber, etc.)
Utilize U/W know-how of MS First Capital for other group companies in Asia, etc.
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4. Growth Strategies (4) Emerging Countries
Sri Lanka 2015: Invested in Ceylinco 2018: Additional investment, application
of the equity method
Growth potential in Indian Ocean economic zone
Market share is approx. 20% (largest financial group in the country)
MSI invested in the life insurance field as well.
Sri Lanka: Global logistics hub One third of the container vessels and half of the oil tankers in the world are expected to pass off the coast of the country.
2020 2040 Population: 2.6Bil 3Bil
GDP: 9% of global GDP 12%
Exports: 11% of global exports 16%
Partner
Note; Source: A 2013 study on the logistics infrastructure development project (Indian Ocean economic zone examination project) of the industry adapting to the earth’s environment and using technologies in Japan (March 2014, the Ministry of Economy, Trade and Industry)
India
2016: Increased capital contribution ratio 2018: Second among the Company’s
overseas bases, following MS Amlin, in terms of premium volume
Major financial group in India Wide-ranging operations in
southern India
Partner
Myanmar
Have one of the widest network of bases in Myanmar Operate a variety of business (bank, airline company, hotel etc.) as the group.
Partner
Population is approx. 53 million; GDP growth rate is around 7%* Approx. 400 Japanese companies established operations 2015: Underwriting in a special economic zone licensed. July 2019: Investment of 10 % shares of IKBZ (currently KBZ MS General Insurance) has been approved provisionally by the authority. Note; IKBZ is an insurance company under KBZ Group, one of the largest conglomerates in Myanmar.
Note; *Source: The World Bank Global Economic Prospect 2019-2021 annual average
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Growth Phase
13 Early Days
Acquired the non-life insurance business in Asia of AVIVA in the UK in 2004 and expand local business.
Expands Base of Non-Life Insurance Business
Invested in major life insurance businesses in different countries, including Malaysia, Indonesia, and India.
Launches Life Insurance Business
Strengthened a system for tapping into growth markets, acquiring First Capital, the largest non-life insurance business in Singapore, and investing into a life insurance business in China.
5. Looking ahead to the Future of Asia
Enters Early
Established bases in each ASEAN country at an early stage while other Japanese companies enter the markets.
MaaS Digitalization
Sharing Economy
To the New Era
• Asia is a dynamic market. • MS&AD business and activities in Asia will provide value to Asian
countries and communities, contribute to the development of society and life and to the sound development of the insurance industry through its business.
• In addition, tapping into business opportunities, we will accelerate growth of the MS&AD Group.
Strengthens Base for Growth
Accelerating growth
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<Appendix> Changes in the Combined Ratio
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Changes in the combined ratio of Asian Business are as follows.
80.0%
85.0%
90.0%
95.0%
100.0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
90.0%
97.0%
286.1%
84.0%
87.8%
90.6%
93.2% 92.3%
97.1%
94.0%
(FY)
Thailand Flood
Growth Strategy in Asian BusinessAgendaスライド番号 3スライド番号 4スライド番号 5スライド番号 6スライド番号 7スライド番号 8スライド番号 9スライド番号 10スライド番号 11スライド番号 12スライド番号 13スライド番号 14