agents as wealth managers

7/25/2019 Agents as Wealth Managers

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HOULD IN URANCE

AGENT BECOME

WEALTH MANAGER?

Executive Briefng o Trend andBehaviour o HNWI in theirInvestment and Advisor

Preerence


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About The

ResearchStudy ofFuture

Trend andNeeds of

InsuranceAgents and

HNWI


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The study is an Executive briefng oa rom:

>2 years, International, Multi-Millionollar research into !lobal, "sia#acifc, and Indonesia$s trends o:

"sia #acifc and Indonesian Mar%etissues

!lobal and "sia #acifc &'(Ibehaviours, advisors criteria andinvestment )reerence

Mar%et trust and behaviour trends

*egulatory changes a+ecting thefnancial mar%et

Individuals (HNWI)Research Study


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The study is an Executive briefngo a rom:

>*e)orts rom !loballyac%noledged !overning odies

and .onsulting com)anies: I./#, 0#/, '/#

#riceaterhouse .oo)ers, oston.onsulting !rou)s, Mc%insey!lobal *e)ort, .a)gemini, Merryl1ynch, night 0ran%, Edelman, *.(ealth Management, .redit/uisse, 3isa, Master.ard, &arris

Interactive

Individuals (HNWI)Research Study


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R!FI"# !F ASIAACIFIC$S HNWI


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High Net WorthIndividuals (HNWI)

What is aHigh Net

WorthIndividuals(HNWI) %

Individualswho has

investableassets in

excess o !"#$%%%$%%%$&

Classi&cation Wealth ('S)"4uent 566,666 - 5,666,666

&'(I 5,666,666 - 7,666,666

3ery &'(I 7,666,666 - 76,666,666

8ltra &'(I >76,666,666


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Asia aci&c HNWI


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Regional ro*th


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Asia aci&c HNWIWealth istribution


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Asia ac&ci HNWIro*th +,-- .+,-+

Indonesia$s&'(I

)o)ulationgros >59rom 2655 to

2652

W l h


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Wealth/anage0entreferences

&'(I around the globe )uts thecom)etency o their advisoras highlyim)ortant; 12345 among &'(I

surveyed )ut it as most im)ortant &'(I )reers to have:

Single Fir0 ith Tea0 of #67ert advices

Holistic A77roach andWealthreservation strategies but ith o7ti0alro*th

#roessional /ervices ith regular

scheduled re7ortingon investmenterormance


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Wealth /anage0entA77roach

5= #reer to or% ith /ingle frms ith team o ex)erts2= 1isten to (ealth "dvices rom amily more than a single ex)ert

advisor

= (ants measurement o )rogress hile able to retain and )reservetheir ealth


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Wealth /anage0entRelationshi7

5= (ants to have a )anel o s)ecialised ex)erts to advice them2= (ant to have more )ersonal control on the ability to manage their

investments= #reer to have a (ealth Manager ho can hel)s them access more

than


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Wealth /anage0entServices

5= 1i%e to have a )ersonalised service rom their (ealth Manager2= #reer to have a more )roessionally )re)ared communication and

scheduled re)orting on investments results rather than an ontimeand direct contact

!ource' Pacifc World Wealth (e)ort rom *a)gemini and (B* Wealth +anagement


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Trust "evel to Wealth/anagers


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HNWI Invest0entortfolio

5= &'(I in "sia #acifc are moreaggressive, exce)t in @a)an, com)ared torest o the orld

2= "verage #ortolio has over >96 o"sset in high return Investment vs; 26


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HNWI Invest0entortfolio

!ource' Pacifc World Wealth (e)ort rom *a)gemini and (B* Wealth +anagement


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Indonesia$s HNWI"andsca7e

/ome Mar%et ata about

Indonesia$s groing &igh 'et(orth Individuals A&'(I=:

Indonesia in 2655 has theorld$s largest increase o &igh

'et (orth Individuals by 9BAin the )eriod o 266B-2655=,higher than India and .hinaA2 and ?5 res)ectively=

Indonesia has


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Invest0entAllocation

Asia aci&c$s HNWIInvest0entAllocation

Indonesia HNWIInvest0entAllocation

#


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e0and ForFinancial Advice

!ource' .lobal Wealth +anagers !urve/ ,%#, rom "atamonitor


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=Indonesia$s HNWI"oo>ing For%

-3 C!/#T#NT

A?IS!RS+3 SIN"# C!/AN@

:3 W#A"THR#S#R?ATI!N

R!WTH


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WHAT IS W#A"TH/ANA#/#NT%

0uture orm o an Internationally *ecognised Insurance"gents

Wh i W l h


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What is Wealth/anage0ent%

(ealth managementas an invest0ent.

advisorydisci)lineincor)orates:&nancial 7lanning,invest0ent 7ortfolio

0anage0entand anumber o aggregatedfnancial service

" )roessional servicehich is the combination

o &nancialinvest0entadvice= accountingta6services= andlegalestate 7lanning

or one ee; In general,ealth management ismore than


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4 As7ects of Wealth/anage0ent Service

TotalWealth

/anage0ent

WealthCreation

WealthAllocation

WealthAccu0ulat

ion

Wealthreservati

on

Wealthistributio

n

1 St f W lth


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1 Ste7s of Wealthlanning rocess


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Co07lete Financiallanning

TotalFinancial

lanning

CashEo*andCred

itlanning

Ris>and

Insurance

lannnin

g

Invest0e

ntlanningRetir

e0ent

lanning

Ta6

lanning

#state

lanning


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for InsuranceAgents

Increasingly #ducated and co07le6 client needs

"ess ro0otion incentive 0ore ease of transaction=relationshi7 oriented= lo*er cost of transaction

7roduct oriented rocess oriented

refer those *ho can oGer distinctive valuesdiGerentiation

International Co07etition *ith the co0ing of A#C

+,-4

Increasing tougher regulation by !

Increasing co07etition fro0 local bodies (!therinsurance co07anies= 8ancassurance bodies=

Financial cor7orations= etc3)


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Total re0iu0 ContributionJ

8ancassurance vs3 Agencies

"gencies ancassurance9;66

B;66

D;66

;66

?6;66

?5;66

?2;662655 2652

ancassurance )remium groth in 2655 is ?5,hile rom agents only 57; y 2652,ancaassurance has contributed more thanagencies channelG ?6;? o 2652 total lie insurance

)remium com)ared ith agencies contribution o


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are "osing theCo07etition

Most insurance com)anies citedancassurance as a %ey strategic mar%etor increasing revenue; ancassurance)roducts are chea)er, can be tailormade or s)ecifc ban%ing )artner, and

easier to o+er to a ready database oban%ing clients

/ome insurance com)anies erecreated as @oint 3enture s)ecifcally tomar%et ancassurance )roduct ith

great success, e;g;: "H" Mandiri, .IM/unlie

an%s are aggressively strategicallyim)roving their (ealth Managementsta+s com)etencies and )roducts,


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Financial Advisorrofession

*egulation or (ealth Managersto be certifed is undere)Mena%ertrans regarding/'I AIndonesia (or%ing.om)etency /tandard= 'o:

566IIM266B, 0inancial /ector,an%ing /ub /ector, (ealthManagement ivisionJtoritas @asa euangan AJ@= has drated several regulationsthat ill have high im)act to the 0inancial Industry:

The #roessional title o KInvestment0inancial "dvisorL illbe regulated by Jtoritas @asa euangan AJ@=; Theregulation drat states that to have the KinvestmentadvisorL title, a fnancial )roessional must be )roessionallycertifed ith a orldide recognised certifcation such as.0#;

The )roession o K0inancial #lannerL ill be alloed to sell


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Insurance Agents"andsca7e

e more strategic /anage0ent, less tacticalsales Mindset

More 7rocess oriented, less )roduct oriented

/ee% international standards of conduct, not

com)any only trained behaviour Solution 7rovider than


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The Kuestion isL

Co07onents of


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Co07onents ofCo07etency

rofessional

Co07etency

Skillsand

Knowledge

Experience

SoftSkills

Co07onents of


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rofessional

Co07etency

Skillsand

Knowledge

Experience

SoftSkills

"cademicegree

Co07onents of


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rofessional

Co07ete

ncy

Skillsand

Knowledge

Experience

SoftSkills

#roessional.ertifcation

.ontinuous

#roessional

EducationN

Ex)erience e;g;:


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Standard of aWealth /anager

#67erienced

no*ledgeable in Financialliteratures and current ne*s

S>illed in Financial &eld

rofessional Conduct

ood Soft S>ills andCo00unication S>ills

A 7art of a co07any of oodStanding

rofessionally Certi&ed *ith


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IndonesianInsurance Agents

Insurance Agents NeedTo 8e /ore than a good

agentsL They need tobe Financial Advisors

Wealth /anagers toreach the ne6t level of

success


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THANK YOU

Presented By:

Pet Hen Oei, B,Eng, CFP, QWP

agents as wealth managers

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