Building A World-Class Financial Services Operation Platform (Introduction to Ping An Group Integrated Operation Center)

Transcription

1 Bilding A World-Class Financial Services Operation Platform (Introdction to Ping An Grop Integrated Operation Center) November 2007

2 The World-Class Integrated Operation Platform (IOC) The premise Invested RMB 1 billion 147,000 m 2 Objectives Consistent service standard Continos cost redction Separating front- and back-office, redcing ops risks Vale Spporting grop strategy Improving service levels and sales spport, redcing costs and risks Process reengineering, standardization 2

3 Agenda IOC Overview Progress and performance Ftre plans 3

4 Agenda IOC Overview Progress and performance Ftre plans 4

5 A Solid Operation Platform is Critical to Grop Aspirations Flly Shared Grop-Wide Cstomer Resorces Insrance Banking Asset management Integrated Financial Services Platform Ping An s objective is to become one of the leading mltiple financial services providers in the world that consistently delivers stable profit growth and shareholder retrn. 5

6 The Operation Platform Mst be Able to Spport the Mlti-Prodct, Mlti-Chanel Strategy Cstomers Personal Hybrid Commercial Channels Individal sales force Collections forces Secrity branches P&C brokers Bancassrance branches Telemarketing Banking branches Financial advisors Pension sale fore P&C sales fore Secrity & investment banking sales fore Bank RMs Profit center Prodcts Life Ins. P&C Ins. Trsts Banking Health Ins. Secrities Pensions Asset Management Profit center Backoffice Centralized & Standardized Operations Integrated Service Cost center 6

7 The Previos Operation Model Cannot Spport Sch Strategy HQ Life Health Branch (~ 80) Data processing B1 B2 UW Data processing B1 B2 UW B1 B2 Call center Claims Conter Claims Sb-branch (~800) SB1 Conter SB2 Policy admin Policy admin Conter Data processing UW Claims Varios ops fnctions exist in >800 cities, difficlt to captre economy of scale Standards deviate by geographical areas and by bsiness lines Mixing services and pre back-office fnctions, not enogh attention to cstomer services Minimm share of resorces and expertise Complexity in risk management 7

8 Operation Centralization is Crcial for Ping An Grop Key Drivers WTO and Globalization: China became the largest emerging market,mlti-national financial instittions became or key competitors Competitors secred cost advantages throgh new operation model Technology enables remote and large scale operations: Online payment systems Imaging systems Large database and CRM Sophisticated cstomers demand: One-stop services Consistency Standardization Strategic vale of centralization Cost advantage: Enhanced efficiency and prodctivity Improved cost strctre and cost level Service enhancement: Better and consistent service qality Good services level at any cstomer contact points Risk control: Managing risks centrally New risk management model, tailored for new bsiness model and strategy 8

9 Agenda IOC Overview Progress and performance Ftre plans 9

10 The Grop Started to Rebild Operation Model in 2004 Ops spport Ops principles & rles One-stop services Cross-prodct Highly standardized Max. share of resorces Centralized Bild deeper expertise Integrated processes and systems Consistent service levels 1. Cstomer interface (call centers, conters etc.) 2. Shared operations (Scanning, data entry etc.) 3. Professional operations (Underwriting, claims etc.) 4. 3 rd -party operations (Hospitals, repair shops etc.) 5. HR / Training 6. Ops & Process mgmt 7. Policy, Rles, and gidelines 10

11 Established a Grop-Wide Operation Unit Integrated Operation Center (IOC) operation management Planning & Research Process management Policy management Grop-wide ops mgmt and planning platform HR & Training dept. Performance mgmt Credit card Banking operation Non-motor nderwriting and claims Motor nderwriting and claims Pension claim adjsting Life claims Life policy admin. Life nderwriting Call center Docment operation dept. Finance & Acconting dept. Centralized shared services platform Centralized professional processing platform Centralized ops spport platform 11

12 And a Network of Operation Centers Integrated Operation Center Call center UW/Policy admin Claims Finance & Acconting Data processing Shanghai IB/OB Life/Health/ Ato Life/Pension/ Health/P&C Finance & Acconting Data processing Szho IB/OB Life/Health Life/Pension/ Health Shenzhen IB/OB Chengd IB/OB Life/Health/ Ato Life/Pension/ P&C Finance & Acconting Data processing 12

13 Accmlated Core Operation Capabilities Core capabilities Bsiness Process Reengineering System redesign Ops mgmt Standardization Knowledge mgmt Basic Rationale Efficiency and qality can and mst be improved continosly Strctred methodology and fact-based analysis is the key Improve efficiency and costs throgh end-to-end straight-throgh-processing Proactively redesigning systems, preparing for bsiness development pfront Focs on both reslt and process Maximize overall resorces tilization Everything can be standardized Knowledge is treasry of the organization Docment, store and se of knowledge are important Selected performance IOC bild-p Seals centralization Telesales process design ELIS OA IT isses mgmt system Ops command center Prediction and schedling Motor insrance atomatic nderwriting system Data processing system Motor claims nationwide rle engine Call center knowledge base 13

14 Reslts of Core Capabilities (Example: BPR) Simplified front-end Centralized processing Centralized athority control and aditing Scan Athority control System transfer Information Collection only Remote approval Centralized remote aditing 14

15 Reslts of Core Capabilities (Example: system redesign) Branch Operation centers Cstomers/ Workflow engine channels Imaging Workflow engines Agents Web CRM Cstomer contact history Web Mgrs elis GBS epcis Oracle financials Banks TDB Transaction Database CIF2 TDB TDB TDB TDB Cstomers 15

16 Reslts of Core Capabilities (Example: OPS mgmt) Prediction Real-time monitoring Reslt tracking Historical data analysis Real-time volme and service level monitoring Atomatic reporting and tracking Forecast and schedling Real-time adjsting resorces allocation Dynamic performance analysis 16

17 Delivered Sperior Operation Reslts (Normalized figres) Qality (error rate) Service levels Unit costs Data processing 1-97% Health claims (% cases paid in 5 days) +220% 3.2 Motor claims 1-87% Property insrance claims 1-90% 0.1 Life UW (avg. policy issing time) 1-20% 0.8 Expense acconting 1-68% 0.32 Before Crrent Before Crrent Before Crrent As of Jly,

18 Agenda IOC Overview Progress and performance Ftre plans 18

19 Effectively Spport Bsiness Growth 21b Claims payot Underwrite 7.5m vehicles Underwrite 5.8m 18b Claims payot 1.2m Expenses vehicles Integrated Operations Center Underwrite 5m new policies Underwrite 3m new policies 40m service calls 1.5m Expenses 2006 年 2007 年 60m service calls 19

20 Contine to Centralize Operations

21 Gradally Redeploy to Low Cost Areas, Captring Cost Advantages Chengd 合肥 Szho 文电专销 Shanghai 电专销 文电专销 Data processing Call center UW/claims etc. Telesales 电专销 Shenzhen 21

22 Or Vision Spport and enabling grop strategy, throgh leveraging latest technology and operation capabilities Bilding a role model operation platform, with the best services levels, operation qality, risk management practices and, the most competitive cost advantage Leading integrated financial services providers 22

23 Thank Yo!