In 2011, the Asia-Pacific insurance sector has outperformed other sectors, such as banking and securities, in the financial services industry in terms of growth due to the market’s re-appreciation of the value of insurance.

Insurance is a basic tool for protection and money-saving, making insurance a thriving industry. The global financial crisis made us realise the true meaning of genuine concern for and responsibility towards others, both of which contribute to the core spirit of the financial services industry.

In 2012, stable growth will still be prevalent in Hong Kong, Taiwan and other mature markets in the region and given the market’s fast development and the increasing stability of the Chinese Yuan (CNY), China’s insurance business is also expected to flourish.

We aim to promote MDRT’s culture and vision throughout China and, at the same time, preserve MDRT’s tradition in Greater China. We will also strive to make MDRT a platform here to encourage members’ participation and interaction. There are a significant number of veteran financial services professionals in Hong Kong, Taiwan and other established markets who are committed to the industry and display outstanding performances. They are excellent role models for financial services professionals in the emerging markets.

At last, I wish for all my MDRT peers to strive for greater achievements in the coming year.

Qi Bin
2012 MDRT Regional Chair for China, Hong Kong, Macau and Taiwan

Learn ideas and strategies you can implement to help grow your business and realise your true potential at the Pre-meeting Workshop led by Tony Gordon, a 34-year MDRT member with 33 Top of the Table qualifications and Michael Morrow a four-year MDRT member from Ontario, Canada.

Members of MDRT's Executive Committee will share what it means to be a professional advisor and how they successfully made that transition at the MDRT Executive Panel Discussion.

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Unlock your true potential with the best and the brightest in the financial services profession by attending the 2012 MDRT Annual Meeting, 10-13 June in Anaheim, California.

Early registration deadline ends 22 April 2012. Click here to view highlights from the 2011 MDRT Annual Meeting.

Source: Asia Insurance Review eDaily e-newsletter, 23 September 2011

Eighty-two percent of middle-income earners in Asia feel a greater need to protect their lifestyle this year, according to data in a new insurance dashboard conducted by ING Insurance in Asian markets. One out of every two respondents (52 percent) also indicates they intend to buy an additional insurance policy in the next 12 months.

Mr Frank Koster, CEO of ING Insurance Asia Pacific, says: “Asia's growing middle class is looking for more protection to ensure they can maintain their lifestyles in the face of uncertainty and an increased awareness of the benefits of insurance.”

Studies by ING indicate that uncertain economic and income conditions in India, Malaysia, Thailand and Japan, and political changes in Thailand and Japan are the key factors driving this desire to insure against any potential downturn.

Mr Koster says: “At the same time, unexpected medical expenses and rising medical costs (in China, Hong Kong, Malaysia and Thailand) coupled with changes in family circumstances (in China, India, Korea and Malaysia) were also key motivators to consider increased insurance coverage.”

“Insurance policies with savings plans attached are proving to be the product that meets this demand. These policies are proving to be an accessible and affordable wealth management and protection product, for Asia’s growing number of middle income earners,” he adds.

Themed “Always Beginning,” MDRT Day Japan was held on 30 September in Iwate, Japan, in place of the Japan Chapter Annual Meeting, which was cancelled due to the earthquake and tsunami earlier this year. Special guests from Korea Chapter attended the event, including 2012 Regional Chair of Japan, Korean and Southeast Asia, Sung Ho Shin and 2012 Zone Chair of Korea, Byung Cheol Jung. Speakers at the event comprised 2012 Zone Chair of Japan, Hiroshi Sasamoto, Vice-Chair Hidenori Miki and PR Committee Chair of Japan, Motoshi Sasaki, who shared their insights with the participants. Norio Sasaki, coach of Japan’s national women’s soccer team, was invited as a speaker at the event.

The tri-annual MDRT Korea Workshop took place on 14 October at Bexco in Busan, Korea. The attendees, comprised 572 members and non-members, learned best practices in an array of topics, such as “Market Segmentation Strategy” and “Happy Life” by financial services professionals, Yuseong Kim and Sangjin Moon respectively, and “The Power of Positive” by comedian Mihwa Kim. The event was well-received, leaving its attendees looking forward to the next MDRT Korea Workshop.

I specialise in the business insurance market whereby the majority of my clientele are business owners. During an economic downturn, many of the businesses are struggling and do not have the ability to afford the plans I recommend. My solution was to offer “Financial Planning” or “Financial Literacy” seminars to employees of the companies I have existing business with. And because of my good working relationships with the senior management at these companies, they often allow me to conduct seminars for their employees.

The seminars are typically held during lunch and I offer free lunches to those who register and attend. After the seminar, I accept appointments for personal consulting. Most people want to know more about insurance but never had the opportunity. The seminars are going well and the individual business that I earn from these seminars fills in the gap for my business.

To convince a high-net-worth individual to become your client, you must have the ability to carry a dialogue like a CEO.

First you will need to develop a CEO's mindset and pitch the sales from the perspective of the client. You could start by using the same vocabulary as the client, studying your client’s business/industry and their business model to pique their interest to and engage them in the conversation.

You only have a few minutes to pitch the sale, during the first meeting and therefore it is critical that you impress them. I recommend using simple words, convey your ideas in an orderly fashion, monitor your speech tempo and most importantly, get straight to the point and address the client’s concern.

Ask yourself, would you come across as a trustworthy advisor to your prospect for his or her business in the long term? Incorporate a CEO’s foresight within your practice and over time with the relevant experience, your high-net-worth prospects will welcome your CEO-class advice and service.

First, clients should understand the purpose of meeting an advisor. We first act on the principle of why and, subsequently, how. The first minutes of a meeting are very important: We either attract the client or we don’t.

The “umbrella” is a great diagram that supports this first stage of sales. It divides the human life into three parts. Clients need to understand that the productive part of their life is the only time they can shape their future retirement life.

From meetings with clients, I realise that most people work five days a week and receive payment of up to 100 percent of their income.

An important question I pose to clients is: “How many workdays and rest days would you like to have after retirement?” The most common answer provided would be no workdays and seven rest days.

I also ask my clients: “Can you imagine a situation where you retire with 42 percent of your current income?” I explain that they will have the same expenses they have currently, maybe higher, in retirement so I have come to help them build up a “protective umbrella against an expenses thunderstorm”.

I show prospective clients how money can work for them. I remind my clients that the present is a consequence of the past, and if they want a better life in the future, the only thing that can influence that is here and now in the present.

In difficult times, we need to be communicating with our clients much more – writing to them, calling them, reassuring them and also reassessing their portfolios. It is a hand-holding time. Our job is to reassure clients that their portfolio is still right for them and explain, in words that they can understand, why they should “sit tight”.

If some investments need changing, we need the courage to bring it to the client’s attention and solve the issue. A lot of this work will not bring instant earnings to us, but it will help secure the trail of income we already receive and clients will be much happier to refer us to their peers in the future.

Take the opportunity to ask the client whether they have friends who are worried about their investments. Many advisors refrain from contacting clients when markets are bad and would rather wait for markets to improve. You can easily obtain referrals, on the basis of offering a second opinion on their portfolio to either reassure or reassess and make changes. Either way, those referrals will want to deal with an advisor who is proactive rather than an existing one who has not been in contact.

There are opportunities for business. Clients need an alternative to depositing their money. Clients need creative, positive advisors. Make your clients feel better for having met with you. Uplift them. Bring some humour to the situation!

It is also a great opportunity to expand your business by picking up the businesses of advisors who have experienced one recession too many and quit. If they have a bank of good investment clients, this could be a profitable addition to your business.

MDRT Connect is a private online resource where members can access brilliant ideas, exchange best practices and interact with industry peers.

Now you can learn of ideas from watching video presentations from the Top of the Table Annual Meeting at your convenience. Receive updates on the next video presentation by reading upcoming issues of the MDRT Asia Connect e-newsletter.

MDRT Asia Pacific Office

Tel: +65 6496 5505
Fax: +65 6496 5599
Email: asiapacific@mdrt.org
Website: www.mdrt.org