swiss life network newsletter...content 3 feature story our home is switzerland and we are at home...
TRANSCRIPT
Swiss Life Network NewsletterJune 2012
In this issue we briefly describe our geographic expansion over the last 50 years to ensure that we are present where our customers need us. It’s an ongoing journey that will continue in parallel with our clients’ constantly changing requirements. You can read about our latest expansion into Indonesia on page 13.
Over the last 50 years, the level of influence, share of power, and weighting of participants in the global economy has altered dramatically. Emerging markets have gained importance and will continue to do so. We are thus committed to having a strong presence not only in well-established markets, but also in emerging economies.
To gain more insights into one of the globe’s most important markets, the Swiss Life Network Board held its 2012 spring meeting in China, hosted by Network Partners Ping An and China Life. You can find an overview on page 9 of the hot topics in China relating to employee benefits. We’re looking forward to welcoming more Chinese multinationals very soon into our client base.
The next major open gathering of the Swiss Life Network is in September 2012, in Flims, Switzerland, when our International Employee Benefits Conference takes place. At this conference you will meet representatives from all five continents in the Swiss Life Network world. I look forward to greeting you in person in Flims.
In the meantime, I wish you an enjoyable summer and a relaxing mid-year break.
Yours sincerelyMargrit Schmid
Dear Reader
Swiss Life Network Newsletter | June 2012
3Content
Feature StoryOur home is Switzerland and we are at home in the world 4
Client InterviewClient interview: Brother International Europe Ltd. 7
Around the worldChina: Two hottest topics – pension and healthcare 9
New Network Partner PortraitIndonesia: Swiss Life Network welcomes Avrist as new Network Partner 13
Network Partner NewsCanada: New app for group benefi t plans in Canada 14Central America: Network coverage now extended to Costa Rica 15South Africa: Covering the insurance and retirement gap 16
Country NewsDenmark: Pension reform encourages more citizens to remain in the workforce 17
Did You KnowIEBC 2012 programme sessions 18
SLN News FlashSwiss Life rating upgrade 20Swiss Life Network Partner training 21EBRM 2012 ready for order 21Chile: Tenth anniversary celebration – Cruz del Sur and Swiss Life 22
List of Swiss Life Network PartnersNetwork Partners and Branch Offi ces 23
ImpressumPublisher Swiss Life Network, General-Guisan-Quai 40, P.O. Box, 8022 Zurich, Switzerland, T +41 43 284 37 97, F +41 43 284 39 97, [email protected] • Editor Swiss Life Network in cooperation with network partners, clients and Openline • Photos Swiss LifeNetwork in cooperation with network partners and clients • Photo Front Overhead image of men’s rowing (iStock) • Design and Print Swiss Life Marketing Support • Copyright Swiss Life Network • Reprint authorisation on agreement with the Publisher • The quarterly Swiss Life Network newsletter is available online: www.swisslife-network.com/newsletter
As multinational companies have expanded and grown along with the global economy, the Swiss Life Network has continuously extended its footprint to match the needs of clients. Today the Network has a global presence that extends all the way across Europe, North and South America, the Middle East and Africa, and the Asia-Pacifi c region.
Global coordination of our clients’ employee benefi t plans including multinational pooling is the key element of the Swiss Life Network’s offering. But clearly, a network of today’s size and reach cannot be built overnight. What was the impetus for our geographic expansion and how did it all begin?
BORN WITH TRADITION, DRIVEN BY GLOBALIZATIONSwitzerland has a long tradition providing employee bene-fi ts to its residents. It was as early as in 1916 that occupa-
Our home is Switzerland and we are at home in the world
Feature Story4
tional pension plans were tax exempt. The state social security (AHV) was implemented in 1948, and the manda-tory occupational pension plans (BVG) in 1985. Living and breathing in this environment, it was natural that Swiss Life, the backbone of the Swiss Life Network, has deeply engaged in the group insurance sector and has evolved into the leader in Switzerland.
If we look back to the post-war decades of the 1950s and 1960s, when the Network was just setting up, we see a period
5
Swiss Life Network Newsletter | June 2012
Feature Story
of vibrant economic growth not only in Europe but all over the world. Globalisation, which had plummeted between 1914 and 1945, was fi nally on the rise again. And as pros-perity grew, so did the number of multinationals.
Swiss companies were taking the opportunity to expand into other countries, and Swiss Life, as the leading Swiss life insurer, naturally followed suit to meet its clients’ growing needs. At the same time, the US-based companies expand-ing throughout Europe and beyond were eager to make use of their growing purchasing power. This was a key driver behind the invention of multinational risk pooling by Professor Amsler of Swiss Life.
In short, the Network has been determined since its earli-est beginnings to serve our clients wherever we are needed. One thing was clear from the onset: to live up to our pledge to put our clients at the centre of everything we do, we have to deliver not just proximity, but also the same high Swiss standards of quality, reliability and competitiveness in every country in the Network.
GLOBAL COVERAGE FROM A SINGLE PROVIDERThe Network’s geographic expansion over the past half-century has been led by our multinational clients taking advantage of economic, political and technological devel-opments around the globe. New trade zones have sprung up, bilateral and multilateral trade agreements have been signed, and the Iron Curtain fi nally fell. We have seen the
outsourcing of human resources, and the boom of the internet and other new technologies. These factors have combined to fuel enormous global movement by compa-nies. And with movement come new needs.
For example, Swiss Life Luxembourg was set up in 1985, in response to the requirements of Goodyear, a long-term
…with movements come new needs“ ”
Swiss LifeNetwork
1962–1980
Belgium
South Africa
Canada
Japan
1981–2000
Denmark
Norway
Luxemburg Korea
Taiwan
Panama Slovakia
Hungary
Malaysia
New Zealand Brazil
Argentina
2001–2012
Sweden
Spain
Portugal
China
USA
Italy
Honduras
Greece
Indonesia
Austria
France
Germany
Ireland
Netherlands Switzerland
Czech Republic
Australia Hong Kong
Thailand
Philippines
Columbia
Guatemala
Venezuela
Mexico
Russia
Finland
Singapore
Costa Rica
El Salvador
Nicaragua
India
UAE
Poland
UK
Chile
Feature Story6
Swiss standards of quality, reliability and competitiveness in every country in the Network
“”
client. Almost four decades later, Swiss Life Luxembourg has become one of the Network’s centres of excellence for global Third Country Nationals and expatriate plans, offering our fl agship Swiss Life Select plan for expatriates and mobile employees.
When clients had needs in countries where Swiss Life had no presence, extensive searches were carried out to fi nd a lead-ing local independent life insurance company to join the Network, with an exclusive partnership whenever possible.
The Network’s fi rst relationships outside Europe were established in 1977, with partners in Canada and South Africa. The fi rst Asian partner was signed up in Japan in 1980. This was followed by agreements with Network Part-ners in Korea, Hong Kong, Taiwan, Malaysia and other Asian countries. 1989 saw the fi rst Latin American Network Partners in Colombia, Guatemala and Panama, and many others followed swiftly.
Today the Swiss Life Network is a global association of 61 local insurance companies and business partners covering over 80 countries and territories. Although our Network
Partners have very diverse cultural backgrounds and local specialties, the Swiss Life Network is clearly a single pro-vider of global coverages delivering the same high stand-ards of service, quality and reliability in every location.
NEW PRODUCTS, NEW COUNTRIESThe expansion of the Swiss Life Network is continuing faster than before even as we celebrate our 50th anniversary. There are two major thrusts to our growth. The fi rst is the continuous expansion of our product offering both at the global and the local level, to ensure fully comprehensive solutions for our clients. At the same time, we are contin-uing to move into countries where our clients are newly present and require employee benefi t solutions. This par-ticularly applies outside Europe, where awareness of the importance of employee benefi ts has grown substantially.
We are proud of the Swiss Life Network’s extensive geo-graphic presence today. And as we look forward to the next fi fty years, we are determined to continue serving multinational companies’ needs by developing our solu-tions and the Network even further, and accompanying our clients to new countries and regions around the world.
7
Swiss Life Network Newsletter | June 2012
Client Interview
The Brother Group was founded in Japan in 1908. Today it has manufacturing and sales facilities in 44 countries around the globe, with around 30 000 employees worldwide. The Swiss Life Network has served Brother International Europe for 40 years. We asked Mr. Geoff Lockton and Ms. Joanne Dixon from Brother to give us an insight into its approach to geographic expansion and employee benefi ts.
SWISS LIFE: WHAT IS BROTHER’S APPROACH TO EMPLOYEE BENEFITS WORLDWIDE: CENTRALISED FROM HEADQUARTERS OR HANDLED BY LOCAL SUBSIDIARIES?Brother: Now the plans are handled by local subsidiaries – although, when many of our European Sales operations were being established back in the 1970s, there was signifi -cantly more centralised input from our European Head Of-fi ce in the UK, which directed the employee benefi ts schemes on their behalf. This was primarily because back then, the European Sales operations were just being established, and were not experienced in employee benefi t matters.
With time, the local subsidiaries became more sophisti-cated and gathered more expertise. So now, employee benefi ts are primarily handled locally, while the European Head Offi ce focuses more on areas such as compliance and codes of conduct, and facilitates the sharing of knowledge and best practices.
A strong pension helps retain the best employees
Client interview: Brother International Europe Ltd.
For more informationplease contact Swiss Life NetworkE-mail: [email protected]
SWISS LIFE: WHAT ELEMENTS OF BENEFIT SOLUTIONS ARE PARTICULARLY IMPORTANT TO BROTHER AND WHY?Brother: It’s impossible to provide a complete benefi ts so-lution that will meet everyone’s requirements, but we have always tried to ensure that pension provision is a signifi -cant factor in the total package. This could be seen as a very paternalistic approach – but it is one that we feel very strongly is an employer’s responsibility. It is important to note, though, that pension provision, like many of the other benefi ts, differs by location, due to different local needs and regulations.
SWISS LIFE: WHAT ROLE DO YOU THINK EMPLOYEE BENEFITS PLAY IN SUPPORTING YOUR HR STRATEGY AND FOCUS?Brother: We believe that a strong pension offering is very important, particularly given the statistics for staff reten-tion that we enjoy (our average length of service in our two major UK locations and in many European offi ces is in excess of 12 years). This is a statistic we are very proud of and we believe that the strong pension offering refl ects the company’s belief that its employees play a fundamental role in the ongoing success of Brother. Furthermore, the com-pany is committed to the wellbeing and fi nancial future of our employees, even in retirement. We strive to provide an attractive employment package to help us attract and retain high-calibre staff.
The calibre of our Pension offering is best evidenced when Brother was awarded the Pension Quality Mark in 2012 for its defi ned contribution scheme. This award, run by the National Association of Pension Funds (NAPF), recognises organisations that offer pension schemes with good con-tribution rates, good quality governance, low charges, and clear and ongoing communications with members.
SWISS LIFE: HOW DO YOU MANAGE EMPLOYEE BENEFITS WHEN GEOGRAPHIC EXPANSION TAKES YOU TO NEW COUNTRIES?Brother: We are currently expanding into Eastern Europe and Russia. When we start a new operation, the employee benefi ts offered are generally quite simple, and always in line with local statutory requirements. We introduce greater sophistication when the operation becomes established.
8 Client Interview
SWISS LIFE: WHAT CHALLENGES IN EMPLOYEE BENEFITS DO YOU ENCOUNTER WHEN EXPANDING TO NEW COUNTRIES?Brother: We recognise the diversity of cultures and contin-ually look to fi nd better ways to work together. For example, each year we have expatriate associates from Japan coming to the UK for three- to fi ve-year terms. We provide support and help to integrate them into the local culture and daily life. This presents the company with challenges to ensure that we respect each other’s cultural diversities and work together for the benefi t of all our stakeholders.
SWISS LIFE: LOOKING FORWARD TEN YEARS, HOW DO YOU EXPECT EMPLOYEE BENEFITS TO CHANGE AT BROTHER?Brother: Quite frankly, not signifi cantly. We will keep re-viewing the benefi ts we offer and make changes where we believe the best interests of the employees and company can be served. For example, evaluating the benefi t against the cost of providing Direct Benefi t or Direct Contribution pension schemes.
We will also probably engage more in sharing good prac-tices and examples across our European Sales locations, and ensure that benefi ts are at the right level, and that employee wellbeing is taken care of.
For example, in the UK we have a Wellbeing Week, when we organise workshops on physical and mental wellbeing for employees. These cover topics like: fi re safety at home, health screening, employee benefi ts, how to plan your fi nances, eating healthily, etc. We want to give employees the opportunity to learn more about the work-life balance and how to maintain a healthy lifestyle. The week is very popular with employees – we have a 90 % participation rate. We’re now looking to see if it makes sense to repli-cate this programme in other European locations.
We have established a European Ethics Committee that handles sensitive issues faced by employees in Europe. It also lets employees voice any concerns or complaints. Our code of conduct and compliance activities and guidelines will continue to be improved and implemented.
WHAT DO YOU WANT TO SEE FROM THE SWISS LIFE NETWORK IN THE COMING YEARS?Brother: The continuing ability to provide the local ser-vices that each of our operations require to meet their lo-cal needs.
Our thanks to Mr. Geoff Lockton, Senior Director, Finance and Ms. Joanne Dixon, Senior Manager HR, of Brother International Europe Ltd., for participating in this interview.
Mr. Geoff Lockton
Senior Director, Finance
Ms. Joanne Dixon
Senior Manager, HR
Swiss Life and the Network has been the proud provider of a wide range of employee benefi ts to Brother International Europe Ltd for 40 years. Swiss Life and the Network deliver coverages in-cluding life, disability, medical and pensions to Brother employees in seven European countries: Austria (Wiener Städtische), Belgium (Delta Lloyd Life), Germany (Swiss Life Germany), Ireland (Irish Life), Netherlands (Zwitserleven), Russia (Rosgosstrakh), and Switzerland (Swiss Life AG).
Swiss Life Network Newsletter | June 2012
9
China has attracted millions of eyeballs as the land of opportunities and growth. China’s economic impact to the rest of the world cannot be ignored, nor can the issues and challenges that this oriental giant is battling in order to sustain all the growth. Among these challenges, pension and healthcare are two of the four hottest topics (the other two being housing and education). In this article we look into these two hot topics: the key problems where solutions are required, and how multinational companies and solution providers are coping with them.
China:Two hottest topics – pension and healthcare
Around the World
China’s pension system today is highly fragmented in terms of coverages, schemes and geography, each province with its own arrange-ments. Despite several pension reforms over the past two decades, the current pension system covers only a fraction of the population and does not function as its origi-nal intention. We will look into the challenges and the outlook of the pension system, with the focus on the urban pension provisions and the implication to companies.
— Proportion of employment population
— Dependency ratio
— Proportion of old-age population
Source: World Bank Pension Study
80
70
60
50
40
30
20
10
01995 1996 1997 1998 1999 2000 2010 2025 2050 2075
Ageing Trend in China
RAPID AGING OF POPULATION: FOUNDATION OF THE BURDENOne issue that affects the entire coun-try is the constantly accelerating ageing of the population, seemingly the fastest in the world according to the United Nations projection. In 2010, there were 167 million people aged 60 or more, ac-counting for 12.5 % of the population. By 2025 the proportion of older people will have risen to over 20 %, and by 2050 to some 28 % of the total population, according to World Bank forecasts.
Today’s 810 million employees (aged 15 to 64), are supporting 294 million re -tirees (aged over 65). In Beijing there are about four taxpayers to support each
pensioner. However, given the rapid ageing of the population set out above, and the very low replacement birth rate due to the one-child policy, the age dependency ratio will rise con-siderably.
Further complicating the diffi culties is effective retirement age. Although the offi cial retirement age is 50–60 (male 60, female 55, female worker 50), the effective retirement age in many cases is considerably below the offi cial age. For example, many workers were offered “early retirement” with an immediate pension under the large-scale restruc-turing of state-owned enterprises (SOEs).
Pension: getting old before getting rich
10 Around the World
THE CURRENT PENSION SYSTEM IS FRAGMENTED AND INADEQUATEUrban employees are served today by a multi-pillar pension system, which was fi rst set up in the 1990s. However, this highly fragmented system covers only 55 % of the urban population and does not function as intended (illus-trated below).
The basic old age pension of fi rst pillar is supposed to cover all urban employ-ees, while in reality the contributions are only paid by or on behalf of about half of them. The main reason for low compliance is a relatively high contri-bution rate: total contribution rate of employer and employee is on average 28 % of wages for urban employees. This scheme represents a heavy cost burden for companies. The rapidly ageing pop-ulation, low coverage, and low retire-ment age mean that funding of this system is a signifi cant problem, and the shortage could reach up to 95 % of GDP in 2050.
Enterprise annuity (EA) plans of sec-ond pillar, which came into law in early 2004, are voluntary occupational retire-ment schemes, based on defi ned contri-butions. Unfortunately, however, while the funds have increased by 35 % annu-ally since 2007, the annual growth in the number of companies with an EA plan has only been at a rate of 9 %, and devel- opment is still slow. Today just 13 mil-lion workers are covered. Insuffi cient tax advantages (including other pref-erential treatments) play the main role here. Coupled with high administra-tion costs, small and medium-size enter-prises (SMEs), which accounts for about 80 % of workers in the urban areas, are fi nding it diffi cult to set up such plans.
The third pillar, involving private pension insurance, has enormous potential for growth in China. Over fi fty companies offer a plethora of plans, and the market is growing every year. However, while there is a strong
pattern of fast growth in individual insurance plans and premiums, the expansion of group plans appears to have stalled in recent years, due to the complete lack of tax advantages.
FUTURE PLANS AND CHALLENGESUnder China’s twelfth fi ve-year plan, the government has set out its determi-nation to integrate the pension system as a whole and to improve overall levels of pension income. A vital element of this will be to establish a properly func-tioning three-pillar system.
This would see the fi rst pillar include not only a mandatory pay-as-you-go public system (basic old age pension), but also mandatory, fully-funded individual accounts. The goal would be to provide replacement income of 20 % to 40 %. A major challenge for the fi rst pillar will be to ensure that individual accounts are fully funded. The young retirement age, both offi cial and effective, also needs attention to assure the viability of the pay-as-you-go scheme.
The second pillar would consist of supplementary pension plans, includ-ing EA plans, on a voluntary defi ned contribution basis. This would aim for replacement income of 40 % to 60 %.
On EA and other occupational pension plans, stronger participation and fur-ther development will be crucial. To push this will require substantial work from the government, professional EA providers and the companies. From the government side, tax preference policy will need to be further optimised, and government guidance on the estab-lishment of EA plans will also need to
Set-up of the current Chinese pension system
First pillarOften called the “Social pooling with individual accounts”, it provides a basic old age pension under a defined benefit system. This aims to provide a retire-ment pension based on the average urban wage (20 % of average urban wage)
Second pillarOften called the “Individual Account”, it provides a variable benefit based on individual and employer contributions, and is aimed to top up the basic pension
Third pillarAdditional personal voluntary contributions
11
Swiss Life Network Newsletter | June 2012
Around the World
strengthen. For EA providers, the co -ordination of social security would be important. Plans and programmes which allow SMEs with in suffi cient capital to set up funds need to be encouraged (for example, the “Collec-tive Pension Fund”*). Furthermore, there is also a need to establish profes-sional full-scale pension companies that can provide a complete range of service (from insurance, asset man-agement to fund management), which hopefully will lower the administra-tion costs.
The third pillar would be based on per-so nal savings and totally voluntary. Education and incentives would need to be in place to encourage sustainable saving behaviour and early planning for retirement.
As of today, there is a long list of improvements required to reach the goals set out by the government. How-ever, as yet, detailed guidelines have not been issued. Multinationals with companies in China will need to keep watching the situation closely. They also need to continue to ensure that their employees are covered by solid occupational pension plans.
This article is based on the presentation by Dr. Qingyao Wan (Anne Wan) of Shanghai Finance University, titled “China Pension System and Challenges to MNC”.
* Collective Pension Fund: occupational pension funds that cover employees of more than one company.
Healthcare: more affordable but still long way to go
A well-known saying describes the Chinese healthcare system as: too diffi cult to access, too expensive, and too variable in quality. We look at how multinational companies and their employees can cope with this.
The three major reasons why the Chi-nese healthcare system is in this situ-ation today date back in time to 1985, and although the situation is now improving, it is worth looking at the historical context:
MarketizationWith the introduction of a market sys-tem after 1985, public hospitals (where 100 % of medical activities took place up to then, and 90 % still do today) now have to fi ght for survival. The government subsidy that covered over 80 % of public hospital operating costs up to 1985 was gradually reduced, so that around the year 2000, it covered less than 10 % of costs.
Insurance enrolmentChina’s new social welfare benefi t insur-ance system was slow to be implemented, and was not strongly enforced at fi rst. Only approximately 37.6 % of the urban population were covered by 2007.
Too many ministriesThe numerous bodies involved in public healthcare, extending from the Ministry of Health to the Ministry of Finance and Ministry of Civil Affairs, are all involved in setting policies and daily practices. As a result, there are a plethora of rules on service standards, procedures, pricing, use of profi ts and surplus, and human resources.
RECENT REFORMSAfter 2007, however, the situation began to improve and develop in the right di-rection. China’s central government launched a new round of healthcare system reform, and has spent an addi- tional RMB850 billion over the past three years to subsidize public health
12 Around the World
Swiss Life Network Partners China Life, Ping An of China and LZ Assist are happy to serve multinational companies in China.
For more informationplease contact Swiss Life NetworkE-mail: [email protected]
and pri mary healthcare, improve uni-versal insurance coverage, establish a Na tional Essential Medicine List, and introduce pilot reform of public hos-pitals.
In the year 2011, the Chinese govern-ment successfully realized its goal of providing universal health coverage to its people (although coverage is shal-low), increasing the enrolment rate in the three social welfare benefi t insur-ance schemes to 95 %. In addition, the government is reforming the distorted fee-for-service medical fee schedule and the physician bonus structure tied to hospital profi ts, and beginning to implement a zero-profi t drug policy and clinical protocols.
Most Chinese people, although they still face double-digit growth in health-care spending, are starting to feel the benefi ts of the new reforms. These in-clude lower out-of-pocket medical pay-
ments (from over 60 % previously to 50 % today). The government intends to reduce these to 30 % by 2015.
CHALLENGES FOR EXPATRIATESAlthough things are getting better, the Chinese healthcare system still poses a major challenge for employees of multinational companies. While locals have to deal with the shallow coverage provided by social welfare benefi t insurance, expatriates in parti-cular experience additional confusion and worry when they have health prob-lems. Their diffi culties include: language barriers, lack of knowledge of suitable medical resources, unfamiliarity with procedures in public hospitals, time pressures, privacy issues, and the prob-lems of very expensive private clinics with few specialist doctors.
HELP IS AT HANDChallenges mean opportunities. Swiss Life Network Partner LZ Assist has a Cus-
tomer Relation & Risk Management System that provides 24 x 7 healthcare services and support to deal with all these issues. The company offers 24-hour primary healthcare over the tele-phone and at the workplace in Eng-lish so that insureds have convenient access to medical service providers. Second opinions by specialist doctors in qualifi ed centres also ensure high-quality service and control against unnecessary over-prescription.
With its thorough understanding of the Chinese healthcare system and close relationships with insurance partners, which helps to manage medical risks in China, LZ Assist is dedicated to en-suring client satisfaction and constantly improving its service effi ciency to serve insureds better.
13
Swiss Life Network Newsletter | June 2012
New Network Partner Portrait
For more informationplease visit www.avrist.comor contact Ms. Ekaningtyas AtingE-mail: [email protected]: +622157898188 ext 8529
PT Avrist Assurance (Avrist) is one of the leading joint-venture life insurance companies in Indonesia. Established in 1975, the company provides life insur-ance, disability, accident, medical, credit life and pension services to both indi-viduals and corporate clients through its extensive multi-channel distribu-tion network. With over 4,000 agents and more than 450 employees across the country, supported by some 30 sales offi ces and 14 independent agency offi ces, Avrist serves a large base of over one million customers, including 1,800 corporate clients.
INTERNATIONAL JOINT VENTURE PARTNERSAvrist is the only life insurer in Indo-nesia backed by international fi nan-cial institutions. It signed a joint ven-
We are delighted to announce that PT Avrist Assurance, based in Jakarta, Indonesia, has joined the Swiss Life Network effective March 1, 2012.
Indonesia:Swiss Life Network welcomes Avrist as our new Network Partner in Indonesia
ture partnership with DEG (Deutsche Investitions- und Entwicklungsgesell-schaft), a member of KfW Banken-gruppe and one of the largest Europe-an development fi nance institutions in 2009. Since 2010 it has also a joint venture with Meiji Yasuda Life, one of Japan’s leading life insurance compa-nies and a long-term Swiss Life Net-work Partner. Avrist was awarded an AA- rating by Fitch Ratings in Septem-ber 2011.
RECOGNITIONAvrist has received several awards re-fl ecting its adherence to its values of people focus, professionalism, agility and forward thinking. These include being named Best Life Insurance Com-pany in Indonesia by Euro Money’s Insurance Survey 2009; Best Service Insurance – broker’s choice by Investor Magazine in 2010; and 2nd Best Life Insurance Company 2011 by the Asso-ciation of Insurance Brokers in Indo-nesia.
WHY AVRIST?• Highly experienced in employee ben-
efi ts since 1975
• Strong portfolio of over 1,800 cor-porate clients
• Long-term partnerships (ten years or more) with over 120 corporate clients
• Full range of medical coverages (in-cluding dental and maternity)
• Dedicated provider relationship team to handle 500 strong hospital net-work
• Offers fl exibility to select third-party or in-house administrators
• Group products available for all seg-ments, from fi ve employees
• Strong fi nancial base• Good reputation for client service
and risk management• Website access for policy and claims
status• Availability of voluntary employee
benefi ts
REGIONAL STRENGTHWith Avrist joining the Swiss Life Network, we now offer coverage to our in ter national corporate clients in a total of 13 Asian countries. Avrist will be pleased to provide its expertise and ex-perience in employee benefi t solutions to the over 200 multinational clients of the Swiss Life Network in Indonesia.
14
The Great-West Life Assurance Company has raised the bar for technology in the Canadian group benefi ts marketplace with its newest free mobile app that allows plan members to access services on the go.
Great-West Life introduced GroupNet™ Mobile in April. This innovative mobile application gives registered users of the company’s GroupNet for Plan Members website added services and convenience. GroupNet Mobile fol-lows the 2011 launch of DrugHub, an app that allows consumers to manage their prescription medications wherever they are. Both can be downloaded free from the App Store.
Using GroupNet Mobile, plan members in Canada can use their iPhone and iPod touch devices to access GroupNet for Plan Members to:• submit healthcare claims online • access personalized coverage information on benefi ts,
claims and more
Canada: New app for group benefi t plans in Canada
• view card information, including member ID, drug card, and Global Medical Assistance
• locate the nearest providers with access to Great-West Life’s Provider eClaims service, through a built-in global positioning system mapping tool
“GroupNet Mobile responds to the growing number of smartphone owners who use their mobile devices to access online services and manage a wide range of personal infor-mation,” said Brad Fedorchuk, Vice President of Group Marketing, Great-West Life. “This app builds on the con-venience of GroupNet for Plan Members, which brings together the information and tools plan members need in a secure, easy-to-use website.”
GroupNet Mobile enhances Great-West Life’s innovative suite of eClaims services: Member eClaims, Provider eClaims and the Health SolutionsPlus Visa payment card, which allow plan members and healthcare providers to manage claims and accounts online without fi ling paper forms.
Great-West Life will release GroupNet Mobile for the BlackBerry and Android formats later in 2012.
Network Partner News
For more informationplease visit www.greatwestlife.comor contact Mr. David HenryE-mail: [email protected]: +1 416 552 58 02
Founded in Winnipeg, Manitoba, Canada in 1891, Great-West Life has long been a leader in the Ca-nadian group benefi ts marketplace. The company has established this position over many decades through its commitment to superior customer service, and its comprehensive selection of cost-effective benefi ts plans. Great-West Life offers effective benefi t solutions for employee groups of any size. The company serves the needs of more than 32 000 plan sponsors and their plan mem-bers, and handles approximately 50 million group health and dental claims transactions for its plan members and their dependents each year.
more manage cforms.
Great-WeBlackBer
For more information please visit www.mapfrecr.comor contact Zuleika TelloE-mail: [email protected]: +507 378 89 00
Swiss Life Network Newsletter | June 2012
Network Partner News 15
Employee Benefi ts Reference Manual 2012 ready for order
The Swiss Life Employee Benefi ts Reference Manual (EBRM) 2012 provides information about social security, private employee benefi t plans and taxation from 49 countries around the globe.
Starting June, you can access the Employee Benefi ts Reference Manual (EBRM) 2012 free of charge through various ways:
• download the EBRM as an on-the-go iPad application from the app store
• download the country profi les through the Swiss Life website• order the EBRM on an USB drive
For details about EBRM download and ordering, please visit www.swisslife-network.com/ebrm.
Central America:Network coverage now extended to Costa Rica
Swiss Life Network Partner Mapfre has now acquired a license for group business in Costa Rica, adding this exciting market to its footprint in Central America where it is the acknowledged market leader.
Mapfre offers innovative and competitive group term life, accidental death and disability, and group health plans. It is known for its fl exible and effi cient service, and dedicated support unit for clients and brokers at the regional level.
16 Network Partner News
Research reveals that the majority of South Africans are grossly under-insured, with appallingly low retire-ment savings. Currently, 94 % of those reaching retire-ment age need to continue working, depend on govern-ment assistance, or rely fi nancially on family or friends, while an estimated 60 % are underinsured for life and disability cover. There is clearly a serious insurance and retirement gap.
South Africa: Covering the insurance and retirement gap
Momentum Group Limited, in collaboration with UNISA, has developed a fi nancial wellness index tracking South African households. This shows that only 2.7 % of house-holds’ income is spent on savings. South Africans are incur-ring debt to fi nance consumables, not assets. Some 50 % of South African households have a highly unstable fi nancial position, making them vulnerable to detrimental changes in their fi nancial circumstances from which it will be dif-fi cult to improve their situation.
Adding to the scenario is the unemployment rate, currently at 25.7 %, with about half of all young people jobless. Poverty continues to affect millions.
THE IMPORTANCE AND DIFFICULT STATE OF SMALL, MEDIUM AND MICRO ENTERPRISES (SMMES)SMMEs make up the largest business sector in every eco-nomy, and in South Africa, the SMME sector is seen as an essential player in achieving economic growth through the creation of wealth and employment. SMMEs account for the majority of employment in the South African eco-nomy, with smaller fi rms originating almost 80 % of newly created jobs.
For more informationplease visit www.momentum.co.zaor contact Hettie JoubertHead: Trustee ManagementMomentum Employee Benefi tsE-mail: [email protected]
Unfortunately, the statistics on South African SMMEs show very poor sustainability of start-ups. 40 % of new busi-ness ventures fail in the fi rst year, 60 % in their second year, and 90 % in their fi rst 10 years of existence. When compa-nies fail, employees lose their employer sponsored bene-fi ts, widening the retirement and insurance gap. And while small businesses offer the only real prospect of large-scale job creation in South Africa, conditions for small businesses have deteriorated markedly in terms of taxation, wage demands, and labour and other regulations. Indeed, high wage demands mean that there are also serious restraints on offering good employee benefi ts.
Many SMMEs participate in umbrella funds to provide retirement savings and access to insurance benefi ts. From an employer perspective, an umbrella fund is easier to administer. However, the failure rate of SMMEs has a huge impact on the cost-effi ciency of umbrella funds. Reduced membership translates to an increase in the cost per member, and poses a risk for the sustainability of the fund.
HOW CAN UMBRELLA FUNDS SUSTAIN THEIR MEM-BERSHIP AND SUPPORT SMMES? To retain membership, umbrella funds need to be innova-tive. Product fl exibility at the employer and member level is critical to help SMMEs at every stage of their develop-ment, and in order to retain membership. Member educa-tion is another key area needing support from umbrella funds and fi nancial advisers, as well as a holistic approach to member benefi ts, to eliminate duplication.
Swiss Life Network Partner Momentum Life is concerned not only to highlight the current retirement and insurance gap, but also to encourage umbrella funds, fi nancial advisers and participating employers to work together to assist fund members to improve their overall fi nancial well-ness.
Country News 17
Swiss Life Network Newsletter | June 2012
Denmark: Pension reform encourages more citizens to remain in the workforce
Among the pension reforms passed by Denmark’s parliament in 2011 was a change intended to encourage more Danish citizens to remain in the workforce, and save millions in social welfare costs.
For more information please visit www.danicapension.dkor contact Mr. Peter MoerchDanica PensionE-mail: [email protected]: +45 45 13 59 35
From April 1, 2012, anyone making contributions to Efterlon, the volun-tary state-run system of welfare sup-port for early retirement, is now al-lowed to withdraw from the scheme and receive his or her contributions as a single, tax-free, lump sum. Those wishing to leave the plan have until October 1, 2012, to decide whether to withdraw or not.
Under the Efterlon scheme, workers were able to retire fi ve years earlier than the standard retirement age. This will gradually be reduced to three years, however.
Estimates on the numbers of workers leaving the scheme vary. A survey run by Swiss Life Network Partner Danica Pension with market research fi rm Userneeds, indicates that around 40 % of members plan to withdraw. It ap-pears that older, higher-earning men are more willing to leave, while lower-paid women will prefer to remain with-in it.
According to Danske Bank, Denmark’s largest fi nancial institution and par-ent company of Danica Pension, a po-tential DKK 20 billion will be paid out. The bank estimates that some 25 % of this will go into consumption, with the remainder saved or used to repay per-sonal debts.
Swiss Life Network Partners Danica Pension and PFA Pension are happy to serve multinational companies in Denmark.
Did You Know18
Programme session Speaker (in conjunction with Swiss Life Network Partners)
Keynote speechAccess to knowledge – access to power
Jimmy Wales, Wikipedia
Theme 1: Intangible aspects of employees’ quality of life
Plenary sessionUnlocking people’s potential – brain, emotion and action
Prof. Lutz Jäncke, University of ZurichAdecco, Christian VasinoAdidas, Marcus Reichel
Panel discussionWellbeing in the workplace – does it pay off?
Nestlé, Stéphane CosandeyNovartis, Sarah SamsonFurther speakers to be named
Concurrent workshops
Prevention – avoiding absenteeism Speakers to be named
Case management – back to work Swiss Re, Klemens BinswangerFurther speakers to be named
Start well at work – end better at retirement Metro, Carsten SchmidtFurther speakers to be named
Theme 2: Empowerment, innovation and entrepreneurship
Plenary sessionWhy some teams buzz with energy and others don’t Prof. Lynda Gratton, London Business School
Concurrent workshopsDiversity in the workforce – diversity in employee benefits Roche, Roelof Kistemaker
Interactive conversationDo employee benefits foster innovation and empowerment?
BMW, Ursula StöcklTotal, Jean-Remi Bur
Besides the intellectual discussions and exchanges, the IEBC also offers a wide range of workshops, panel discus-sions, interactive conversations and training seminars covering various aspects of employee benefi ts. These sessions are designed to provide in-depth information, examples and best practices from multinational companies, implementation technicalities from Swiss Life Network Partners from different parts of the world.
Below you can fi nd the description for the sessions. For more information, please visit www.iebc2012.com.
Swiss Life International Employee
Date: September 19–21, 2012Location: Flims/Laax, SwitzerlandVenue: Hotel Waldhaus, Flims
Swiss Life Network Newsletter | June 2012
19Did You Know
Theme 3: Sustainable evolution and social responsibility
Plenary sessions
Through food and more – a chef’s approach to social responsibility
Claus Meyer, Chef and Entrepreneur
Running for business – better performance through fitness Viktor Röthlin, Swiss Marathon Champion
Concurrent workshops
Pension obligations – reducing the longevity risk Swiss Re, TBC
Ways to ensure access to affordable health solutions Baxter, Sandy Lahera
Conclusion: Broadening the employee benefits horizon
Plenary session/Break-out sessionBroadening the horizon – changing the perspective
Prof. Ernst Fehr, University of ZurichClaude Nicollier, Astronaut
Training seminars
Session Speaker
ABC on pooling Swiss Life
How to read the Profit and Loss Account Swiss Life
Solutions for expat and mobile employees Swiss Life
Employee benefits trends in emerging markets Swiss Life Network Partners
Pan-European pensions Swiss Life Network Partners
New tools for employee benefits Swiss Life Network Partners
Corsol – information and transparency at one click Swiss Life
Captives – the elements to consider Swiss Life
Share your opinion on Swiss Life Network Swiss Life
Benefi ts Conference 2012
For more information, please visit www.iebc2012.com.
20 SLN News Flash
On May 3, 2012, Standard & Poor’s Ratings Services raised its long-term counterparty credit and insurer fi nancial strength ratings on Swiss Life’s core operating companies to ‹A-› from ‹BBB+›. The outlook is stable.
Zurich:S & P upgrades Swiss Life to ‹A-› rating
According to rating agency S & P, the Swiss Life Group took signifi cant steps to enhance the sustainability of its busi-ness model by improving operational effi ciency. Swiss Life also maintained its capital adequacy, according to S & P’s criteria, despite very diffi cult market conditions. As a result, S & P has raised its long-term ratings on Swiss Life’s core operating entities to ‹A-› from ‹BBB+›.
STABLE OUTLOOKIn its report, S & P noted: “The stable outlook refl ects our expectation that Swiss Life will be able to improve its operating performance further, maintain at least strong capitalization, and conserve its strong competitive position. We continue to assess Swiss Life’s operating performance as good. Swiss Life’s successful implementation of strategic initiatives led to reduced operating expenses and increased non-traditional new business contribution. Overall, these changes have reduced Swiss Life’s dependence on its in-vestment results.”
COMPETITIVE STRENGTH IN GROUP LIFE“Swiss Life’s competitive position is strong, in our view. The Group benefi ts from a market-leading position in the Swiss insurance market, particularly in group life. Further-more, Swiss Life has built its franchise in other European national life insurance markets, such as France and Ger-many, and in the international cross-border business.”
For more informationplease visit www.swisslife.com
21
Swiss Life Network Newsletter | June 2012
21
To help ensure that Swiss Life Network can offer the best possible services to our multinational clients and their advisors, Swiss Life holds regular Network Part-ner training sessions at our headquarters in Zurich. The most recent took place at the end of May and saw 18 participants from ten different Network Partners gather for an intensive two-day course.
Swiss Life Network Partner training
The sessions provide insights into all areas of the Swiss Life Network’s operations and processes, including training on our new CRM system. Participants also have plenty of opportunities to network with other participants and Swiss Life personnel.
The courses are designed for sales, sales administration, and actuarial employees who are newly involved in working with the Swiss Life Network. However, anyone at a Network Partner wishing to brush up or deepen their knowledge is also welcome.
The next training session is planned for: November 8 to 9, 2012 (Thursday and Friday) at Swiss Life Network headquarter in Zurich.
For more information and to register for the next courseplease visit www.swisslife-network.com/eventsor contact Christian ScherffE-mail: [email protected]: +41 43 284 47 64
SLN News Flash
Participants at the training course held May 31 to June 1, 2012
22 SLN News Flash
Since joining the Swiss Life Network in 2002, Cruz del Sur has become an increasingly strong Network Partner offering employee benefi ts solutions for multinational corporations and their subsidiaries in Chile. This year saw the celebration of ten years of partnership between Cruz del Sur and the Swiss Life Network.
Tenth anniversary celebration: Cruz del Sur and Swiss Life
Clients and guests attended impressive anniversary cele-brations held in Santiago de Chile on March 21, attended by over 100 people. Andrés Lehuedé, Group CEO of Cruz del Sur opened the event, followed by Margrit Schmid, CEO Swiss Life Network, who described how employee benefi t solutions contribute to the development not only of companies but also of countries and regions.
José Antonio Llaneza, CEO of Seguros de Vida Cruz del Sur, explained how employee benefi t volumes have multi-plied over the past ten years in Chile due to the high demand for customized employee benefi t solutions. Cruz del Sur has responded by providing a sophisticated and compre-hensive product offering that is continuously developed to satisfy client needs in the areas of life, medical and pension solutions.
Special guest Dr. José Piñera, world-renowned founder of the social security system in Chile, gave an insight into the country’s capital-based social security and pension system, and assessed potential future challenges. Refl ecting on the strong political and economic relationship between Switzerland and Chile, the Ambassador of Switzerland to Chile, HE Dr. Yvonne Baumann, also addressed the guests.
From left to right: Beat Hubacher, CEO Swiss Life International;
HE Dr. Yvonne Baumann, Swiss Ambassador to Chile;
Margrit Schmid, CEO Swiss Life Network; Felipe Ernst Edward,
President of the Chilean-Swiss Chamber of Commerce
From left to right: Andrés Lehuedé, Group CEO Cruz del Sur;
Beat Hubacher, CEO Swiss Life International; Dr. José Piñera;
Margrit Schmid, CEO Swiss Life Network; José Antonio Llaneza,
CEO Seguros de Vida Cruz del Sur
For more informationplease visit www.cruzdelsur.cl or contact Ms. Bernardita Montt FaraggiE-mail: [email protected]: +56 2461 83 52
Swiss Life Network Newsletter | June 2012
23Network Partner and Branch Offi ces
Country Network Partner Website Contact E-mail TelephoneArgentina Galicia Seguros S.A. www.galiciaseguros.com.ar Ms. Lucía ARMANDO [email protected] +54 11 411 48 12 9Australia Hannover Life Re of Australasia www.hannoverlifere.com Ms. Kristine NUGENT [email protected] +61 2 925 16 91 1Austria Wiener Städtische www.wienerstaedtische.at Ms. Monika RUDICH [email protected] +43 50 350 26 76 3Belgium Delta Lloyd Life www.deltalloydlife.be Mr. Michel MOREAU [email protected] +32 2 238 89 11Brazil Icatu Seguros www.icatuseguros.com.br Ms. Vanessa DONKE [email protected] +55 11 347 23 91 6Canada Great-West Life www.greatwestlife.com Mr. David HENRY [email protected] +1 416 552 58 02Chile Cruz del Sur www.cruzdelsur.cl Ms. Bernardita MONTT FARAGGI [email protected] +56 2 461 83 52China China Life www.chinalife.com.cn Mr. Yifei YAO [email protected] +86 10 6363 18 92China LZ Assist www.lzassist.com Mr. Ben SONG [email protected] +86 10 5925 5188China Ping An of China www.pingan.com.cn Mr. Jian Yong WU [email protected] +86 21 386 35 80 1Colombia Seguros Bolívar www.segurosbolivar.com Ms. Lina Quijano [email protected] +57 1 312 2600 ext. 7031Costa Rica Mapfre Costa Rica www.mapfrecr.com Ms. Zuleika TELLO [email protected] +507 378 89 00Czech Republic Kooperativa www.koop.cz Mr. Tomáš JAKUBEC [email protected] +420 727 743 368Denmark Danica Pension www.danicapension.dk Mr. Peter MØRCH [email protected] +45 45 13 59 35Denmark PFA Pension www.pfa.dk Ms. Lotte ELSBORG [email protected] +45 391 75 00 0El Salvador Mapfre La Centro Americana www.lacentro.com Ms. Zuleika TELLO [email protected] +507 378 89 00Finland Ilmarinen www.ilmarinen.fi Ms. Riitta RÄSÄNEN-RUGEMALIRA [email protected] +358 10 284 26 28Finland Mandatum Life www.mandatumlife.fi Ms. Riitta JOKELAINEN [email protected] +358 10 516 7492France Swiss Life (France) www.swisslife.fr Ms. Anne-Gaëlle COLIN [email protected] +33 1 408 22 24 7Germany Swiss Life (Germany) www.swisslife.de Ms. Marion VINTZ [email protected] +49 89 381 09 18 72Greece Groupama Phoenix www.groupama-phoenix.com Mr. Dimitris KALOUDIS [email protected] +30 210 937 62 44Guatemala Mapfre Guatemala www.mapfre.com.gt Ms. Zuleika TELLO [email protected] +507 378 89 00Guatemala Seguros de Occidente www.occidente.com.gt Mr. Wilber BARRIOS [email protected] +502 22 79 70 00 ext. 9373Honduras Mapfre Honduras www.mapfre.com.hn Ms. Zuleika TELLO [email protected] +507 378 89 00Hong Kong Sun Life Hong Kong Limited www.sunlife.com.hk Ms. Vivian LEUNG [email protected] +852 31 83 21 72Hungary UNION Biztositó www.unionbiztosito.hu Ms. Judit SÖRÖS [email protected] +36 1 486 42 48India Kotak Mahindra Old Mutual Life www.kotaklifeinsurance.com Mr. Sandeep SHRIKHANDE [email protected] +91 22 666 21 59 99India Apollo Munich Health Insurance www.apollomunichinsurance.com Dr. Ali NANDINI [email protected] +91 995 981 0002Indonesia PT Avrist Assurance www.Avrist.com Ms. Ekaningtyas ATING [email protected] +62 21 5789 8188 ext. 8529Ireland Irish Life www.irishlife.ie Mr. Damian FADDEN [email protected] +353 1 704 12 72Italy Apulia previdenza www.apuliaprevidenza.it Ms. Giulia POLI [email protected] +39 02 725 66 73 6Japan Meiji Yasuda Life www.meijiyasuda.co.jp Mr. Masaaki NAGAO [email protected] +81 3 32 83 38 84Korea Korea Life www.korealife.com Ms. Ji Eun LEE [email protected] +82 2 789 88 92Luxembourg Swiss Life (Luxembourg) www.swisslife.lu Mr. Steve GOEDERT [email protected] +352 423 95 92 33Malaysia Hong Leong Assurance www.hla.com.my Mr. Chee Kwan FOONG [email protected] +60 3 765 01 35 8Mexico Seguros Inbursa www.inbursa.com Mr. Jorge NAVARRO [email protected] +52 55 532 50 42 3Netherlands Zwitserleven www.zwitserleven.nl Mr. Charles ALBERS [email protected] +31 6 134 48 63 4New Zealand Hannover Life Re of Australasia www.hannoverlifere.com Ms. Kristine NUGENT [email protected] +61 2 925 16 91 1Nicaragua Mapfre Nicaragua www.mapfre.com.ni Ms. Zuleika TELLO [email protected] +507 378 89 00Norway Danica Pensjon www.danica.no Ms. Nina FRIVOLD [email protected] +47 85 40 53 98Norway DNB Livsforsikring ASA www.dnb.no Mr. Tor MYRSETH [email protected] +47 934 07 43 4Panama Mapfre Panama www.mapfre.com.pa Ms. Zuleika TELLO [email protected] +507 378 89 00Philippines First Life www.fi rstlife.com.ph Ms. Ninian CEDO ncedo@fi rstlife.com.ph +63 2 893 30 24Poland Compensa Group www.compensa.pl Mr. Sebastian BOROWSKI [email protected] +48 22 501 63 43Portugal Groupama Seguros www.groupama.pt Mr. Rui ROSA [email protected] +351 21 792 32 27Russia Rosgosstrakh www.rgs.ru Mr. Andrey ZAVGORODNIY [email protected] +7 495 783 24 24Singapore Prudential Assurance www.prudential.com.sg Ms. Julie LIM [email protected] +65 6572 25 16Slovakia Kooperativa www.koop.sk Mr. Štefan PAL’OV [email protected] +421 2 572 995 95South Africa Momentum www.momentum.co.za Mr. Nazeem KHAN [email protected] +27 11 485 75 58Spain VidaCaixa www.vidacaixaprevisionsocial.com Ms. Ana DELGADO [email protected] +34 93 227 89 57Sweden Danica Pension www.danica.se Mr. Tomas OLOFSSON [email protected] +46 752 48 04 06Switzerland Helsana www.helsana.ch Mr. Frédéric URIO [email protected] +41 43 340 11 11Switzerland Swiss Life (Head Offi ce) www.swisslife.ch Mr. René MÜLLER [email protected] +41 43 284 37 82Switzerland Sanitas www.scpc.ch Ms. Pascale SCHAUFELBERGER [email protected] +41 44 751 8104Switzerland Swiss Life Pension Services www.slps.ch Mr. Patricio SCOTONI [email protected] +41 800 00 2525Taiwan Kuo Hua Life www.khltw.com Mr. Wen Hsiang HSU [email protected] +886 2 2176 5166Thailand Bangkok Life Assurance www.bla.co.th Mr. Taweesak DEJPRASIT [email protected] +662 777 8888 ext. 8441UAE Dubai Insurance Company www.dubins.ae Mr. Khurram RAJA [email protected] +971 4 269 30 30United Kingdom Unum www.unum.co.uk Mr. Glenn THOMPSON [email protected] +44 1306 873 83USA Dearborn National www.dearbornnational.com Mr. Matthew REDDY [email protected] +1 630 824 60 96Venezuela Seguros Comerciales Bolívar www.segurosbolivar.com Mr. Guillermo NARIÑO TELLEZ [email protected] +58 212 905 99 33
Network partners and branch offi ces
