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Anthony Perkins

Director

Business Systems – Insurance Services

HSBC Technology & Services

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•Who we are The HSBC Group is one of the largest banking and financial services organizations in the world, with well established businesses in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

•Head office HSBC Holdings plc is incorporated in England, with its head office in

London.

•International brand The establishment in 1999 of HSBC as a uniform, international brand name

ensured that the Group’s corporate symbol has become an increasingly

familiar sight across the world. HSBC differentiates its brand from those of

its competitors by describing the unique characteristics which distinguish

HSBC, summarized by the words ‘The world’s local bank’.

•Assets US$1,502 billion, an increase of US$222 billion, or 17 per cent,

since 31 December 2004

•Profit (pre-tax) US$20.9666 billion, an increase of US$2.023 billion, or 11 per cent, over 2004.

•Capital strength Tier 1 capital ratio: 9.0% & Total capital ratio: 12.8%

•International reach Over 9,700 offices worldwide.

•Staff More than 260,000 employees in 77 countries and territories.

•Customers More than 110 million worldwide, with a total e-customer base of

over 20 million.

The HSBC Group

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Subsidiary Primary area of operation

The Hongkong and Shanghai Banking Corporation Limited

Hong Kong SAR, with an extensive network throughout Asia-Pacific.

Hang Seng Bank Limited Hong Kong SAR

HSBC Bank plc United Kingdom

CCF S.A. France

Household International, Inc. US

HSBC Bank USA N.A. New York State in the US

HSBC Bank Brasil S.A.- Banco Múltiplo Brazil

HSBC Private Banking Holdings (Suisse) S.A.

Switzerland, Hong Kong SAR, Monaco, Luxembourg, United Kingdom, Singapore and the Channel Islands.

Grupo Financiero HSBC, S.A. de C.V. Mexico

HSBC’s largest and best-known subsidiaries

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HTS – HSBC Technology Services• Centers of Excellence • Domain Owners

HSBC is a major user of advanced technology 20,000+ IT staff all over the world$3.8 billion USD annual technology spend in 2005HSBC maintains its own private telecommunications network – one of the world’s largest – to deliver IT services to customers and staff globallyHSBC’s web sites attracted more than 600 million visits in the first 6 months of 2005e-Channel includes Internet, PC banking & Telephone Banking versus fixed and mobile phones

HSBC Technology Facts

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Challenges in integrating a woven web of diverse architecturally different legacy/point systems

• use of “Group” systems• R2 standards and reuse strategy• control and standards over architectural diversification• Global standards across diverse markets and products (e.g. HUB)• wide array of compliance and regulatory rules• cultural differences, e.g. Sharia Islamic law

Focus on Global standards & Integration sometimes overshadows business needs

Reuse strategy lowers development cost, hasten delivery times and facilitate global integration

Global initiatives on common regulatory requirements, e.g. Basel II, Anti Money Laundering, Anti Terrorist, and SOX

Technology Challenges/Opportunitiesof a Global Organization

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Globally, HSBC offers a wide array of Personal & Commercial Insurance Products:

• P&C• Life• Health• Accident• Income Protection• Credit• Education• Travel• Office Insurance• Golfer’s Insurance• Helper (Domestic Helper) Insurance• Etc.

Insurance in HSBC

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Bermuda, Cayman Islands, GuernseyCaptive Management

GuernseyCaptive Insurance

Australia, Brazil, Brunei, Canada, Czech Republic,Egypt, France, Hong Kong, Hungary, Indonesia,Malaysia, Malta, New Zealand, Pakistan, Panama, Philippines, Saudi Arabia, Sri Lanka, Switzerland,Thailand, Turkey, United Kingdom, United States,Vietnam

Agency

Argentina, Brazil, Hong Kong, Isle of Man, Mexico, United Kingdom

Pensions Administration

Middle East, United KingdomPensions/ Actuarial Consultancy

Bermuda, Cyprus, Hong Kong, India, Korea, Middle East, Philippines, Singapore, Taiwan, United Kingdom

Insurance Broking

Hong KongMedical Insurance Underwriting

Saudi Arabia, MalaysiaTakaful

Guernsey, Ireland, United StatesNon-Life Re-insurance Underwriting

Argentina, France, Hong Kong, Ireland, Macao, Mexico, Singapore, United Kingdom, United States

Non-Life Underwriting

Cayman Islands, Ireland, Singapore, United StatesLife Re-insurance Underwriting

Argentina, Brazil, Canada, France, Hong Kong, Ireland,Malta, Mexico, Singapore, United Kingdom, United States

Life Insurance Underwriting

Countries and territoriesBusiness Type

HSBC Group Insurance – Global Presence

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144,8515,11887,79951,934Policies Commercial

22,765,0514,693,14411,252,1141,771,9795,047,814Policies - Personal

US$ mUS$ mUS$ mUS$ mUS$ m

1,681182334410755Attributable Profit

3,155Revenues

14,9651,0692,0813,3628,453Premiums

TotalSouth AmericaNorth AmericaAsia PacificEurope

In 2005, Insurance accounted for 11.15% of HSBC Group's Attributable Profit

HSBC Group Insurance – Global Business

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Execute flawlessly on the cornerstone of our businessRebuild a sustainable business model around e-commerce, telesalesBuild a reinsurance business complementary to other HSBC customer groupsContinuous improvement in everything we do – faster, better, cheaperDevelop/enhance product solutions for all Bank customer groupsCreate a nationwide agency sales force offering a wide variety of insurance

Insurance in HSBC, North American Strategy

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Bank Branches• Personal Financial Services• Commercial Banking

Consumer LendingCredit Card ServicesAuto FinanceMortgage ServicesSecurities BrokeragePrivate BankingDirect – InternetRetail ServicesTaxpayer Financial ServicesAgency

Insurance in HSBC, North American Distribution Channels

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Varied customer segments –• different affordability levels, • different objectives/needs• diversified insurance product basket for different customer

segment/needs Relationship based selling across a wide spectrum of businesses - cross selling to all product lines customersMulti-channel desktop (underway)Optimization & cost efficiency of back officeGlobal Data Warehouse to support customer demographics and propensity analytics (data driven approach to selling)Differentiated Customer experienceIPortal initiative – componentization and reuse of common functionality Personalization through any channelSelf service selling – KIOSKCarrier IntegrationOnline applications for Life Insurance

HTS (HSBC Technology Services) Challenges

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Leverage on 48 million Household customers

Direct-to-consumer distribution channel

Broad range of Life & Health insurance products

Needs-based, consultative selling strategy

Establish joint marketing partnership with a best in class, well recognized, trusted top manufacturer and national distributor• HSBC card carrying agents • HSBC branded product brochures

Our Insurance Agency Distribution Strategy

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Comprehensive Agency Management System

Support Life insurance

Robust commission module

Case Management

CRM & Marketing functions

Built-in Reporting functionality

Architecture

Shared environment model – quick implementation for a pilot

Why E-Z Data

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Appointment Manager supporting appointment scheduling through self service KIOSK

Robust Commission requirements to support different commission models from different business lines

Smart Integrator to ease integration with other Bank Systems.

EZ-Data, a potential component in the IPortal

Varied EZ-Data implementation to support different lines of businesses

Facilitate carrier integration

Enforce compliance requirements

HSBC and E-Z Data Implementation– Fast Forward

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Leverage on business partners:• Similar culture• Results-driven orientation• Robust technology that fits your architecture

E-Z Data and AIG, partners we feel positive about

Summary

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