ING Direct 2011 Annual Report Download - page 56

customer behaviour, was first launched in the region in Malaysia.
The programme aims to provide better service, improve cross-
selling and retain existing customers.
Improving and expanding distribution
In 2011, IAP continued its efforts to further strengthen its multi-
distribution platform. In the tied agency channel, the ‘Orange Way
of Life’, is being promoted in the region around the theme of
’quality’, which is designed to lift the standard of professionalism.
These initiatives focused on the quality of the agents recruited,
quality of the training and development given to agents, and the
quality of advice and service given to customers.
In terms of bank relationships, IAP’s preferred banking partners give
access to more than 50 million customers and provide
differentiated bancassurance products and services based on the
banks’ customers’ needs. During 2011, IAP made further progress
in strengthening key relationships, including ING Life Hong Kong’s
renewal of a distribution agreement with China Construction Bank
(CCB) for another 10 years.
In addition, ING broadened its reach in China with the opening of a
branch in Tianjin, the seventh branch of ING’s Chinese life insurance
joint venture (ING-BoB), and the first since the Bank of Beijing
replaced Beijing Capital Group as a joint venture partner in 2010.
CONCLUSIONS AND AMBITIONS
Insurance Asia/Pacific is on track with its business ambitions and is
making good progress on performance improvement initiatives.
The business is pursuing its vision of creating a best-in-class
company for its customers, employees, agents and distribution
partners through customer-focused product innovation, expanding
and improving distribution and improving operational efficiency.
rising per capita income will continue to favour life premium
growth in emerging Asian markets.
According to internal estimates based on surveys, 82% of middle-
income earners in Asia felt a greater need to protect their income
and lifestyle in 2011. In addition, one out of every two respondents
(52%) also indicated their intention to buy an additional insurance
policy in the next 12 months to insure against any potential
economic downturn. This augurs well for the future of insurance
growth in Asia.
ING is well positioned to capture the increased need for insurance.
IAP is a major foreign life insurer in Asia with nine insurance
companies in seven markets: China, Hong Kong, South Korea,
Japan, Malaysia, India and Thailand. In the region, IAP offers a wide
range of insurance products varying from traditional whole life,
universal life, endowment, unit-linked, Corporate Owned Life
Insurance (Japan) as well as employee and health benefit products.
IAP’s distribution is mainly through tied agency channels, although
bancassurance is rapidly becoming more important as well as direct
channels and independent agents.
Strategic priorities
IAP’s overarching strategic priority continues to be to strengthen its
multi-distribution platform and to drive performance through
customer-focused product innovation and country-specific growth
strategies. The country-specific strategies are all gaining traction.
For example, in South Korea, the tied agency channel improved
productivity while new sales in KB Life were driven by rapid
expansion of other distribution channels as well as continued
strong performance in the bancassurance channel. In Japan, ING is
working towards broadening its distribution channels and
diversifying its product portfolio, while continuing to strengthen its
leading position in the independent agency channel
In April 2011, ING, together with its strategic partners, Public Bank
Berhad (PBB) and Public Islamic Bank Berhad (PIBB), launched a joint
venture in Malaysia called ING Public Takaful Ehsan Berhad, which
will develop Takaful insurance products. Takaful is life insurance
that is compliant with Islamic law. The early product focus will be
on mortgage insurance products, medical and investment-linked
products. The establishment of this Takaful joint venture will enable
ING Malaysia to consolidate its existing market position and benefit
from growth in Takaful by leveraging its existing domestic
infrastructure and the bancassurance relationship with PBB.
On 23 June 2011, IAP completed the sale of its 50% stake in its
second life insurance joint venture in China, the Pacific Antai Life
Insurance Company (PALIC) to focus on strengthening the
partnership with Bank of Beijing.
Customer-focused product innovation
IAP continued to focus on product innovations to capture new
market opportunities and to differentiate its product line to meet
changing customer demands. For example, in Hong Kong, a life
insurance product tailored for high net-worth customers was
successfully launched. Another example is, in India, where a new
child life insurance plan was developed for parents who need to
plan for their children’s education or marriage.
A new initiative called ‘First! Think Customer’, which introduced
tools to the business units to assist them in better understanding
54 ING Group Annual Report 2011
Insurance continued