Target market positioning and tailored services have contributed to the continued success of AIA Group.
During an interview with Xinhuanet last Friday, AIA’s Group Chief Executive and President Mark Tucker said AIA exclusively focuses on developing the life protection market in Asia. He remains very confident on the outlook of the insurance industry in the region.
“It is where world growth will come from. It is where there is the greatest opportunity for our business and it is where the fundamental factors that drive our business are strongest -- the urbanization, the savings rates, the protection gap. All of these reasons make Asia the best place to be by a long way,” said Tucker.
Despite the growing popularity of online finance in China, AIA still believes in the traditional agency distribution model, as it offers the tailored services required by customers of life protection.
“In the life insurance business, it is much more individually based to your circumstances, your wealth, your tax position and your family’s position. I think online finance clearly is massively successful and growing, but I think the agency channel is critically important to give face-to-face advice and service in a way that online cannot do,” Tucker said.
“The challenge around how you organize to best take advantage of that is with the right products, the right services. It is very important and I think that’s really where the energy and effort need to be spent,” he added.
This Asia-based insurer’s overall performance has been very strong for three consecutive years since its IPO.
Its annualized new premium grew by 24 percent to 3.3 bln USD, and the value of new business margin soared to 44.1 percent in 2013.
“The focus for us is on building the right systems, building the right processes, building the right people, and if we have all of that, then we will get sustainability and the results will happen”, Tucker concluded.