(introduction to ping an group integrated operation...
TRANSCRIPT
Building A WorldBuilding A World--Class Financial Services Class Financial Services Operation PlatformOperation Platform
(Introduction to Ping An Group Integrated Operation Center)(Introduction to Ping An Group Integrated Operation Center)
November 2007November 2007
2
n Supporting group strategyn Improving service levels
and sales support, reducing costs and risks
n Process reengineering, standardization
The premiseThe premise ValueValue
n Invested RMB 1 billion
n 147,000 m2
n Consistent service standard
n Continuous cost reduction n Separating front- and
back-office, reducing ops risks
ObjectivesObjectives
The WorldThe World--Class Integrated Class Integrated Operation Platform (IOC)Operation Platform (IOC)
3
AgendaAgenda
IOC Overview
Progress and performance
Future plans
4
AgendaAgenda
IOC Overview
Progress and performance
Future plans
5
A Solid Operation Platform is A Solid Operation Platform is Critical to Group AspirationsCritical to Group Aspirations
Insurance Banking Asset management
Integrated Financial Services PlatformIntegrated Financial Services Platform
Fully Shared Group-Wide Customer Resources
ØØ Ping An’s objective is to become one of the leading multiple financial services providers in the world that consistently delivers stable profit growth and shareholder return.
6
CustomersCustomers
ChannelsChannels
ProductsProducts LifeIns.LifeIns. TrustsTrustsSecuri-
tiesSecuri-
tiesP&CIns.
P&CIns.
HealthIns.
HealthIns.
Pensi-ons
Pensi-onsBankingBanking
Asset Manage-
ment
Asset Manage-
ment
PersonalPersonal
Individual sales force Individual sales force
Security branches Security branches
Banking branches
Banking branches
Collections forces
Collections forces
CommercialCommercial
P&C
brokersP&
C brokers
Financial advisorsFinancial advisors
Telemarketing
Telemarketing
Bancassurance
branches B
ancassurance branches
Pension sale forePension sale fore
Security & investm
ent banking sales fore
Security & investm
ent banking sales fore
P&C
sales fore P&
C sales fore
Bank R
Ms
Bank R
Ms
Profit center
Profit center
HybridHybrid
Back-officeBack-office
Cost center
Integrated ServiceIntegrated ServiceCentralized & Standardized OperationsCentralized & Standardized Operations
The Operation Platform Must be Able to Support The Operation Platform Must be Able to Support the Multithe Multi--Product, MultiProduct, Multi--Chanel StrategyChanel Strategy
7
Life
B1 B2 …
SB1
Data process-
ing UW
Callcenter Claims
Counter Policyadmin
SB2
Counter UW
Data process-
ing Claims
…
Health
B1 B2 …
Data process-
ing UW
Counter Claims
Policyadmin
…
B1 B2 …
HQHQ
Branch(~ 80)
Branch(~ 80)
Sub-branch(~800)
Sub-branch(~800)
• Various ops functions exist in >800 cities, difficult to capture economy of scale• Standards deviate by geographical areas and by business lines• Mixing services and pure back-office functions, not enough attention to
customer services• Minimum share of resources and expertise• Complexity in risk management
The Previous Operation Model The Previous Operation Model Cannot Support Such StrategyCannot Support Such Strategy
8
Strategic value of centralizationStrategic value of centralization
n Cost advantage:u Enhanced efficiency and productivityu Improved cost structure and cost level
n Service enhancement:u Better and consistent service qualityu Good services level at any customer
contact points
n Risk control:u Managing risks centrallyu New risk management model, tailored for
new business model and strategy
Operation Centralization is Crucial Operation Centralization is Crucial for Ping An Groupfor Ping An Group
Key DriversKey Drivers
n WTO and Globalization:u China became the largest emerging
market,multi-national financial institutions became our key competitors
u Competitors secured cost advantages through new operation model
n Technology enables remote and large scale operations:u Online payment systemsu Imaging systemsu Large database and CRM
n Sophisticated customers demand:u One-stop servicesu Consistencyu Standardization
9
AgendaAgenda
IOC Overview
Progress and performance
Future plans
10
1. Customer interface(call centers, counters etc.)1. Customer interface
(call centers, counters etc.)
• One-stop services• Cross-product
2. Shared operations(Scanning, data entry etc.)2. Shared operations
(Scanning, data entry etc.)
• Highly standardized• Max. share of
resources
3. Professional operations(Underwriting, claims etc.)3. Professional operations
(Underwriting, claims etc.)
• Centralized• Build deeper
expertise
4. 3rd-party operations(Hospitals, repair shopsetc.)
4. 3rd-party operations(Hospitals, repair shopsetc.)
• Integrated processes and systems
• Consistent servicelevels
5. HR
/ Training5. H
R / Training
6. Ops &
Process mgm
t6. O
ps & Process m
gmt
7. Policy, Rules, and guidelines
7. Policy, Rules, and guidelines
Ops supportOps principles
& rules
The Group Started to Rebuild The Group Started to Rebuild Operation ModelOperation Model in 2004in 2004
11
Established a GroupEstablished a Group--Wide Wide Operation UnitOperation Unit……
Integrated Operation Center (IOC)Integrated Operation Center (IOC)
Finance &
Accounting dept.
Docum
ent operation dept.
Call center
operation management
Process management
Planning & Research
Policy management
Life underwriting
Life policy admin.
Life claims
Pension claim
adjusting
Motor underw
ritingand claim
s
Non-m
otor under-w
riting and claims
Banking operation
Credit card
Performance m
gmt
HR
& Training dept.
Centralized professionalprocessing platform
Centralizedops supportplatform
Centralized shared services platform
Group-wide ops mgmt and planning platform
12
……And a Network of Operation And a Network of Operation CentersCenters
Integrated Operation CenterIntegrated Operation Center
Call center UW/Policy admin Claims Finance &
AccountingData
processing
IB/OB
IB/OB
IB/OB
IB/OB
…
Life/Health/ Auto
Life/Health
Life/Health/ Auto
Life/Pension/Health/P&C
Life/Pension/Health
Life/Pension/P&C
Finance & Accounting
Data processing
… …
Finance & Accounting
…
Data processing
…
Suzhou
Shenzhen
Chengdu
…
Shanghai
13
Accumulated Core Operation Accumulated Core Operation CapabilitiesCapabilities
n Motor claims nationwide “rule engine”
n Call center knowledge base
n Knowledge is treasury of the organizationn Document, store and use of knowledge are
important
Knowledge mgmt
n Motor insurance automatic underwriting system
n Data processing system
n Everything can be standardizedStandardization
n Ops command centern Prediction and scheduling
n Focus on both result and processn Maximize overall resources utilization
Ops mgmt
n ELISn OAn IT issues mgmt system
n Improve efficiency and costs through end-to-end straight-through-processing
n Proactively redesigning systems, preparing for business development upfront
System redesign
n IOC build-upn “Seals” centralizationn Telesales process design
n Efficiency and quality can and must be improved continuously
n Structured methodology and fact-based analysis is the key
Business Process Reengineering
Selected performanceSelected performanceBasic RationaleBasic RationaleCore Core capabilitiescapabilities
14
Results of Core Capabilities Results of Core Capabilities (Example: BPR)(Example: BPR)
…Centralized authority control and auditing
Authority control
Centralized remote auditing
Scan
…Centralized processing…
Remote approval
Simplified front-end…
Information Collection only
System transfer
15
Banks
TDB—Transaction Database
Branch Operation centers Customers/channelsWorkflow engineWorkflow engine
ImagingImaging
Workflow engines
Customer contact history
CRM WebWeb
Agents
Cust-omers
Mgrs
eLIS GBS ePCISOracle
financials
CIF2 TDB TDB TDB TDB …
Results of Core Capabilities Results of Core Capabilities (Example: system redesign)(Example: system redesign)
16
Prediction…Prediction…
Historical data analysis
Forecast and scheduling
…Real-time monitoring……Real-time monitoring…
Real-time volume and service level monitoring
Real-time adjusting resources allocation
…Result tracking…Result tracking
Automatic reporting and tracking
Dynamic performance analysis
Results of Core Capabilities Results of Core Capabilities (Example: OPS mgmt)(Example: OPS mgmt)
17
Quality (error rate)
Property insurance claims
1
0.03
-97%
1
0.1
-90%
Before Current
Data processing
Unit costs
Expense accounting
1
0.32
1
0.13
-87%
-68%
Motor claims
Before Current
Life UW(avg. policy issuing time)
10.8
Service levels
1
3.2
Health claims(% cases paid in 5 days)
Before Current
+220%
-20%
As of July, 2007
Delivered Superior Operation Results Delivered Superior Operation Results (Normalized figures)(Normalized figures)
18
AgendaAgenda
IOC Overview
Progress and performance
Future plans
19
Effectively Support Business GrowthEffectively Support Business Growth
Integrated Operations
Center
1.5mExpenses
21bClaims payout
Underwrite 7.5mvehicles
60mservice calls
Underwrite 5mnew policies
1.2mExpenses
18bClaims payout
Underwrite 5.8mvehicles
Underwrite 3mnew policies
40m service calls
20062006年年
20072007年年
20
Continue to Centralize OperationsContinue to Centralize Operations
4400
300
2004 2005 2006
1200
2007 2008 2009
6600
8400
2500
21
合肥
销专电文 Data processing
Call centerUW/claims etc.Telesales
销专电文
销专电
销专电
Chengdu
SuzhouShanghai
Shenzhen
Gradually Redeploy to Low Cost Gradually Redeploy to Low Cost Areas, Capturing Cost AdvantagesAreas, Capturing Cost Advantages
22
Our VisionOur Vision
n Support and enabling group strategy, through leveraging latest technology and operation capabilities
n Building a “role model” operation platform, with the best services levels, operation quality, risk management practices and, the most competitive cost advantage
Leading integrated financial services providers
Leading integrated financial Leading integrated financial services providersservices providers
Thank YouThank You!!