Tuesday, October 4, 2011
Chapter 3
3.1 Company OverviewCHAPTER 3 - Company
- Great Eastern Life Assurance is based in Singapore and the largest life insurance company in Singapore and Malaysia. It is also the oldest insurance company in Asia. It is the largest insurance group in Singapore and Malaysia with RM 45 billion in assets (as at 6 Aug 2007) and 3 million policyholders. With two distribution channels – the tied agency force and bancassurance – it is the leader in both Singapore and Malaysia. It is the only life insurance company to be listed on the Singapore Exchange, and the largest insurance company in South-east Asia in terms of assets and market capitalisation.
Great Eastern Life Assurance (Malaysia) Berhad started as a branch office of Great Eastern Life Assurance Co Ltd. It is the oldest and largest insurance company in Malaysia. Great Eastern (as at 31 Dec 2005) has assets in excess of RM26 billion.
- Great Eastern are established in 1908, there are also the market leader with assets in access of RM49billion as at 31 December 2010. Great Eastern is a wholly owned subsidiary of Great Eastern Holdings Limited (GEH) and its ultimate holding company is Oversea-Chinese Banking Corporation Limited (OCBC). Besides Malaysia and Singapore, there are also established in Brunei, Indonesia, China and Vietnam.
In Singapore where Great Eastern is headquartered, and Malaysia with 29 branches, Great Eastern also has a branch office in Brunei since 1975, a subsidiary company in Indonesia since 1996, and representative offices in Hanoi and Ho Chi Minh City. In June 2006, Great Eastern and Chongqing Land Properties Group launched their 50:50 joint venture life insurance company, Great Eastern Life Assurance (China) Co Ltd. This new company is headquartered in Chongqing which will act as a bridgehead for its expansion plans into the rest of China. The Company also holds at least 31% of the total shares in the Malaysian Share market (KLSE).
- In 1999, Great Eastern Life Assurance (Malaysia) Berhad was localised as a wholly owned subsidiary of Great Eastern Life Assurance Co Ltd in Singapore.
Now, Great Eastern has over 2.6 million policies in force served by 24 branch offices and a service network of more than 17,000 agents nationwide.
Great Eastern has picked up a number of awards, one of which is the Singapore Brand Award organised by IE Singapore, which it has won for the fifth year running in 2006. Great Eastern is also well regarded as Singapore's 7th Most Valuable Brand and its brand value increased from S$609 million in 2005 to S$693 million in 2006.
In November 1999, Great Eastern Life underwent restructuring to become a wholly owned life insurance arm of a financial service holding company – Great Eastern Holdings Ltd. This was followed by a merger between Great Eastern Holdings and Overseas Assurance Corporation in December 2000.
Incorporated in 1908, Great Eastern Life Assurance Co Ltd claims to be the oldest and most established life insurance company in Singapore and Malaysia. OAC was incorporated in 1920 as the first composite insurer in Singapore. Great Eastern is the only insurance company in the region with two distribution channels – tied agency and bancassurance.
Great Eastern Holdings became a substantially owned subsidiary of OCBC Bank, Singapore’s longest established local bank, in June 2004. OCBC Bank has assets of S$164 billion and a network of 390 branches and representative offices in 15 countries and territories including Singapore, Malaysia, Indonesia, Thailand, Vietnam, China, Hong Kong SAR, Taiwan, Brunei, Myanmar, Japan, Korea, Australia, UK and USA. This network includes more than 280 branches and offices in Indonesia operated by OCBC Bank's subsidiary, PT Bank NISP. OCBC Bank and its banking subsidiaries offer a wide range of specialist financial services, from consumer, corporate, investment, private and transaction banking to treasury and stockbroking services.
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Koh Yaw Hui
Director and Chief Executive Office
3.5 Location and Subsidiaries
3.5.1 Location
3.5.2 Subsidiaries
- GREAT EASTERN LIFE ASSURANCE (MALAYSIA) BERHADHead Office
Menara Great Eastern
303 Jalan Ampang
50450 Kuala Lumpur
General Line (603)42598888 Fax (603)42598000
Customer Service Careline 1-300-1-300-88 begin_of_the_skype_highlighting 1-300-1-300-88 end_of_the_skype_highlighting
E-mail : wecare@lifeisgreat.com.my
- OCBC – Oversea-Chinese Banking Corporation
- Overseas Assurance Corporation(Holdings)(Malaysia) Berhad – Investment Holding
- Overseas Assurance Corporation (Malaysia) Berhad – General Insurance
Visit website : www.oac.com.my
- Straits Lion Management (Malaysia) Sendirian Berhad - Management Services
- Great Eastern Takaful Sendirian Berhad – Takaful
Visit website : www.i-great.com3.6 Brands, Major Product and Services
3.6.1 Life Protection and Saving
- Great Cash Wonder
Great Cash Wonder is an endowment plan specially designed for movers and shakers who want to see their savings swell in the long term without the commitment of a prolonged premium payment term.
- Great Compact Care
Great Compact Care* offers life, critical illness and accident protection for a flexible coverage duration and amount suited to consumer objectives, at different life stages. Should anything happen to consumer, this three-in-one protection package ensures their child’s education will continue, their loved ones can go on with their lives and that they will not be burdened by your business obligations.
- Great IncomeEnhancer
a plan that helps consumer grow their savings and meet their financial commitments in life. This plan not only gives consumer life protection, it also comes with cash payments, which consumer will receive until policy maturity.
- Elite Builder
Grow consumer savings to secure their future while ensuring their loved ones are protected with Elite Builder. It is a unique endowment plan that rewards consumer with guaranteed cash payout while consumer continue to enjoy their current lifestyle.
- Great MaxiProtector
MaxiProtector is an affordable whole life insurance plan that matures at age 99. Depending on their needs and budget, it provides consumer with the insurance coverage consumer need. If the unexpected happens and consumer are unable to provide for their loved ones, it will help to take care of their needs when they require financial assistance most.
- Great MultiCash
Great MultiCash is an endowment plan that grows their savings while consumer and their loved ones enjoy comprehensive financial protection. With a range of benefits specially tailored for their needs, this plan can help consumer realise their goals at every stage in life.
- Great Prime Life
- 3.6.2 Health
- Smart Early Payout CriticalCare
simple insurance plan that offers flexibility and options to select the type of coverage and amount of protection consumer need. Presenting Great Prime Life, a term insurance plan designed specially to provide consumer with affordable life insurance coverage from as low as RM1.12* a day. Great Prime Life offers consumer the flexibility to meet their changing needs and many other value-added benefits, allowing consumer to enjoy life protection while consumer focus on realising their goals and aspirations in life.
The first plan in Malaysia that pays at the early stages of critical illness. Smart Early Payout CriticalCare is designed with consumer in mind. It’s a unique investment-linked insurance rider, which pays upon early diagnosis of a critical illness, not when the illness has become more severe as with most insurance plans.
- Great MediCare 2
Medical insurance that keeps up with life's many possibilities.Great MediCare 2 is a comprehensive medical insurance plan that gives consumer the medical protection consumer need and eliminates their worries. Great MediCare 2 even protects consumer against unpleasant surprises with an Overall Lifetime Limit of up to RM800,000 and an Overall Annual Limit up to RM200,000, depending on their selected plan.
- Great Enhanced Living Care
Financial certainty in critical moments.Great Enhanced Living Care, the comprehensive whole life protection plan that provides coverage against 36 critical illnesses, Total and Permanent Disability, and death.
- SmartMedic
Enjoy comprehensive medical protection with high annual and lifetime limits.SmartMedic is the comprehensive medical rider for investment-linked insurance plans. With it, consumer have medical protection to cushion the effects of unexpected medical emergencies. By offering consumer comprehensive coverage for hospitalisation, surgical expenses and much more, SmartMedic will help to safeguard their health, while bringing consumer greater financial security too.
- Smart Essential Lady
From womanhood to motherhood. Protects consumer all the way.Protect theirself today with Smart Essential Lady - a range of investment-linked insurance riders that cover consumer against major female-related illnesses, which are faced by women everyday.
- GreatLady
- 3.6.3 Education
- SmartEducate Saver
The total financial protection plan for women.GreatLady is a flexible and comprehensive financial protection plan which provides coverage for women against female-related illnesses .
Grow your child’s education fund affordably.SmartEducate Saveropens the door for consumer's child to enjoy better education opportunities. An investment-linked insurance plan, it grows their child’s education fund with additional investment allocations – while also providing protection against the unexpected.
- GreatEduPlanner
Give your child the greatest of gift - an education fund.Our education planner is here to ease consumer's financing requirements for their child's education. With a minimum coverage of RM10,000, consumer can start your child on the right footing, providing him a guaranteed education fund when he needs it.
3.6.4 Smart Portfolio
- SmartProtect Essential Insurance 2
An affordable plan that allows consumer to enjoy comprehensive coverage against unexpected events from a little as rm100 per month and consumer can further enhance their protection with additional hospitalisation and medical benefits.
- Smart Medic
The comprehensive medical rider for investment-linked insurance plans. With it, consumer have medical protection to cushion the effects of unexpected medical emergencies. By offering consumer comprehensive coverage for hospitalisation, surgical expenses and much more, SmartMedic will help to safeguard their health, while bringing their greater financial security too.
- SmartInvest Premier Insurance 2
Is a plan that focuses on investing consumer's money through higher allocation rates and Loyalty Bonuses while taking care of all their needs and commitments.
- SmartInvest Growth Insurance
Is an investment-linked insurance plan designed to do just that by offering the opportunity to enhance consumer's protection and personal safety net.3.7 Corporate Vision
3.8 Corporate Mission
- To be the leading financial service provider in Asia, recognized for our excellence.
- To be the choice financial service provider in the region and beyond
- To make life great by providing financial security, and promoting good health and meaningful relationships.
3.9 Company’s Current Promotional Strategy
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3.10 Product Sales History
3.11 Current Marketing Objective
3.11.1 Long term
3.11.2 Short term
- To accelerate further development in the overseas markets
- To be the choice financial service provider in the region and beyond
- To be the leading financial service provider in Asia, recognized for our excellence.
- Creating awareness of the new product
- Increasing the market share locally and in the region
3.12 Media Expenditure
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Chapter 4
CHAPTER 4 - Details for Consumer and Stakeholder
4.1 Current Consumers’ Characteristics4.1.1 Demographics
4.1.2 Psychographics
a. Age : 30 days to 70years old
b. Gender : Male and Female
c. Education : All
d. Occupation : All
e. Income Range : RM 500 – RM4000
f. Race & Ethnicity : All race and ethnicity
g. Geographical Location : Urban and Sub-urban
4.2 Stakeholders’ Characteristics
a. Perception : Consumers who concern about their health and want secure money in future.
b. Learning : Newspapers, TV advertisement, flyers, friends, internet
c. Motivation & Needs : To provide the necessities of life for the future
d. Attitude & Personality : Caring and concern about the future of their loved ones.
e. Lifestyle : Modern and healthy.
4.2.1 Primary
- Chairman
Setting up company goals and supervising company development in collaboration with the board of directors.
- Board of Directors
Directing the employees of the company to achieve organization goals.
- Shareholders
Investing money to the company in interest of a share on its profit.
- Employees
Contributing to the company in cooperation with their directors, in exchange for the wages to support their live.
- Consumers
Spending money for the goods produced by the company if they are in good quality or with a good branding, which contributes to the company revenue.4.2.2 Secondary
- Distributors
Aids the distribution of the goods produced while earning from the service provided.
- Media
Helps advertising the brands or the products and create awareness among consumers when the company willingly invest for a scheduling time.
Chapter 5
CHAPTER 5 - Industry and Marketplace
- 5.1 The Industry
5.1.1 Definition of the Industry
In the context of commercial trade, insurance is further defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for consideration, payment, in the form of a risk premium. The insurance premium develops at an actuarily-determined rate. This rate is a factor used to determine the amount of premium to charge for a certain limit, and type, of insurance on the scarce resource. The premium can further be viewed as a guaranteed, known, relatively small financial loss to the insured, paid to the insurer, in exchange for the insurer's promise to compensate the insured in the case of a loss to the insured resource. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be indemnified.
- The shape of the industry for insurance in Malaysia is in the growing stage. Nowadays consumers are more concerned about their health and money saving for future. Consumers tend to find better insurance to satisfy their needs. Many companies are starting to invent or produce new type of insurance policies to fullfill the consumer’s demand. Due to the high demand of consumer, the market sales of product are increasing too.
- Great Eastern Life Assurance expects the country’s gross domestic product to grow five per cent on 2011. Projects under the Economic Transformation Programme (ETP) which will involve strong infrastructure spending will drive domestic demand and fuel Malaysia’s economic growth.
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The market of Great Eastern insurance is currently in an intensive competition; there are a lot of existing product in the market, which are competing each other both directly and indirectly. To survive the competition, Great Eastern have become more innovative than ever to fight for more sales share in the market.
- Positive
- Negative
More competition in the market leads to more effort in innovation, thus boosting the growth of the industry.
More competition in the market leads to more loss in profit and cost in promotion and advertising
Chapter 6
CHAPTER 6 - Competitor
- 6.1 Direct Competitors
6.1.1 Prudential
Prudential Assurance Malaysia Berhad (PAMB) was established in Malaysia in 1924. For the financial year ended 2010, it achieved a record RM1.021 billion in new business annual premium equivalent (APE), representing a 24% growth on 2009. This new business APE comprised Life Insurance sales and Takaful contributions. Takaful products distributed by PAMB’s Wealth Planners and agents are underwritten by Prudential BSN Takaful Berhad.
- 6.1.2 Takaful
Syarikat Takaful Malaysia Berhad (Takaful Malaysia) was incorporated on the 29th of November 1984. The current authorised capital of Takaful Malaysia is RM500 million and paid-up capital is RM162.817 million. It commenced operation on the 22nd of July, 1985 prior to its official launching on the 2nd of August 1985 by the then Prime Minister of Malaysia, Tun Dr. Mahathir Mohamed. The incorporation of Takaful Malaysia was based on the recommendation of the “Task Force on the Study for the Establishment of an Islamic Insurance Company in Malaysia” (Task Force) set up by the Government of Malaysia in 1981. The Task Force in its report concluded that a takaful company based on the principle of al-Mudharabah would be a viable venture in view that its participants would have the opportunity to save, invest and earn profits based on this principle.
6.1.3 Tokio Marine Life
At Tokio Marine Life, we are truly inspired by this simple and noble philosophy - 'Omoiyari'. Omoiyari is the practice of profound understanding and inituitive action. To be thoughtful. To see beyond the obvious. To consider possibilities and fulfill potentials. To act for others.Tokio Marine Life is committed to protect all that is important to you now and prepare you for what tomorrow may bring. The Tokio Marine Group is also engaged in general insurance business in Malaysia through our sister company Tokio Marine Insurans (Malaysia) Berhad.
6.2 Indirect Competitors
6.2.1 Etiqa
Etiqa is the Insurance & Takaful arm of Maybank Group. We pride ourselves on our comprehensive policies without any jargon or hidden clauses, and more importantly, without any catch. At Etiqa, we place people over policies.
In 2005, Mayban Ageas (formerly known as Mayban Fortis), Maybank’s insurance and takaful arm consisting of Mayban General Assurance, Mayban Life Assurance and Mayban Takaful merged with Malaysia National Insurance Berhad, Malaysia's largest national insurer and its subsidiary, Takaful Nasional Sdn Bhd, Malaysia's premier Takaful provider. The merger catapulted Mayban Ageas to the position of second largest insurer in Malaysia.
6.2.2 CIMB Aviva
CIMB Aviva is a joint venture between CIMB Group and Aviva plc. CIMB Group is Malaysia’s second largest financial services provider and one of Southeast Asia’s leading universal banking groups, and Aviva is the world’s sixth largest* insurance group and the largest insurance services provider in UK. CIMB Aviva offers a comprehensive range of Life insurance and Takaful products and services available at CIMB Bank and CIMB Islamic which operate on a dual banking platform in 325 branches in Malaysia.
CIMB Aviva also rides on the global expertise of Aviva, which services 53 million customers across Europe, North America and Asia Pacific. Aviva recorded total sales of £47.1 billion (RM234 billion) and funds under management of £402 billion (RM2.63 trillion) at 31 December 2010.
6.2.3 Hong Leong Assurance
Hong Leong Assurance Berhad (HLA) is one of the largest insurance companies in Malaysia. It is a well-established and respected Malaysian brand offering financial planning and protection solutions to meet the various needs of Malaysians at different cycles of their lives. Commitment to the customer is the key to HLA's success, where service is provided through a large network of branches, agents and brokers throughout the country as well as bancassurance and alternative distribution channels.
HLA began as a General Insurance business under the name of Malaysia Pacific Insurance Berhad in 1972. The Life Insurance business was added into its portfolio a year later. In December 1982, Hong Leong Assurance Sdn Bhd, a composite insurance company was formed eventually acquiring the entire General and Life business of Malaysia Pacific Insurance. Today, HLA is a subsidiary of HLA Holdings Sdn Bhd (HLAH), which is wholly-owned by Hong Leong Financial Group Berhad (HLFG), the financial services arm of Hong Leong Group Malaysia.
Chapter 7
CHAPTER 7 - SWOT Analysis
- 7.1 Strength
- Cheapest insurance, start only from RM 100
- It provides financial protection against the unexpected
- Can choose own protection and investment level
- Its offers extra protection
- It gives tax relief
- The product is new and lack of product promotion and advertising.
- The market strategies are not enough. People always have doubt in trusting new product.
- Unclear information given on the broacher/ pamphlet, thus consumers do not know or get confuse on what type of feature it actually provides.
- Increasing financial activities, therefore consumer realise the importance of insurance
- Good position, therefore consumers will think that saving money is a good plan for their futures.
- Some consumers have bad impression about insurance.
- A lot of insurance company and most bank in Malaysia also having their own insurance plan.
- Raising cost of living
Chapter 8
Purpose Target Audience
8.1.1 Demographic8.1 Proposed Primary Target Audience
- a. Age : 20 days to 27years old
- b. Gender : Male and Female
- c. Education : Degree holder and above
- d. Occupation : White Collar
- e. Income Range : RM 500 – RM4000
- f. Race & Ethnicity : All race and ethnicity
- g. Geographical Location : Urban and Sub-urban
- 8.1.2 Psychographic
- a. Perception : Consumers who have a big dream in life
- b. Learning : TV advertisement, flyers, friends, internet
- c. Motivation & Needs : To achieve their target in life
- d. Attitude & Personality : Big dream and high aim
- e. Lifestyle : Active
- 8.2 Proposed Secondary Target Audience
8.2.1 Demographic
- a. Age : 28 days to 35years old
- b. Gender : Male and Female
- c. Education : SPM and above
- d. Occupation : Working adults
- e. Income Range : RM 2000 and above
- f. Race & Ethnicity : All race and ethnicity
- g. Geographical Location : Urban and Sub-urban
- 8.2.2 Psychographic
- a. Perception : Consumers who are health conscious and caring about their family
- b. Learning : Newspapers, TV advertisement, flyers, friends,
- c. Motivation & Needs : To provide the necessities of life for the future
- d. Attitude & Personality : Care
- e. Lifestyle : Healthy
Chapter 9
Research Element
9.1 Marketplace Research
9.2 Market Observation
NIL
9.3 Online Survey
9.3.1 Online survey result
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