| Issue No. 04 - July/August 2009 |
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MAKING HEADLINES
Insights on Japan, Korea and Southeast Asia – Mature & Emerging Markets
– Jeannette Sulindro Ma, ChFC, CFP, 2009 MDRT Region Chair for Japan, Korea and Southeast Asia
– Jeannette Sulindro Ma, ChFC, CFP, 2009 MDRT Region Chair for Japan, Korea and Southeast Asia
With China gaining membership status in the World Trade Organization (WTO) since 2001, coupled with the deregulation of the Japanese insurance market from 2000 to 2005, Asia is fast becoming a major insurance magnet with increasing trade and investment flows. The growth driven by increases in household wealth, a wider availability of products through multi-channel distribution (e.g. bancassurance), and heightened consumer awareness of risk also attracted many international insurance companies, who were able to capitalise on opportunities to reap substantial profits.When the 2008 financial crisis took place, the life insurance industry suffered greatly along with the rest of the financial sectors. Most life insurance companies across Asia lost tremendous value in the wake of crisis, leaving some in significant distress.
It is therefore important for us, as insurers, to always tread conservatively and pay more attention to each specific market in Asia. Several indicators help us to distinguish the current and potential states of insurance market. They are the insurance density (premium per capita) and insurance penetration (percentage of insurance premiums in GDP).
Based on the study by Swiss Re, "World Insurance in 2007: Emerging Markets Leading the Way", and the indicators mentioned before, we can stratify the Asia life insurance markets into two types of markets – mature and emerging. The mature markets comprise of Japan and the newly industrialised nations – South Korea, Taiwan, Singapore, and Hong Kong, and the rest of the region can be classified as emerging markets. Characteristics for the mature markets are slow growth with relatively high penetration rate and insurance density. In contrast, the emerging markets usually grow fast and have a low penetration rate and insurance density.
The unique mix of the two diverse markets in the region helps to establish a win-win situation for the industry at large. Ideas, information, and standards of work ethics will flow from the various mature markets to the emerging markets. In turn, networking opportunities from the emerging markets can fuel growth potential of the mature markets. For MDRT, enhanced networking amongst its members in the region facilitates greater exchange of knowledge and thought leadership. This will foster the MDRT culture of service excellence and high standards of work ethics, thus reinforcing MDRT’s relevance and importance to the industry in this region.
Jeannette Sulindro Ma, ChFC, CFP
2009 MDRT Region Chair for Japan, Korea and Southeast Asia
FEATURES
The 2009 MDRT Annual Meeting came to a successful closure, with a showcase of nearly 100 sessions by more than 100 speakers. For those who missed it, here are snippets of the exciting happenings that took place at Indianapolis from 7-11 June. And for those who attended – relive the inspiring moments!
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MDRT Foundation celebrated 50 years of charitable giving by hosting a prepaid ticketed champagne reception. Attendees enjoyed an elegant musical performance by Ronan Tynan while sharing an intimate evening with new and old friends.
Court of the Table - Top of the Table Programme featured Fareed Zakaria, best-selling author and editor of Newsweek Magazine, who shared an interesting outlook of the current recession. "How did we get to this point?" asked Zakaria. "To view everything as a great morality play—to a demonise Wall Street (as a cause of the current economic crisis) will impede our ability to recover. In fact, we are where we are today because of our success, and not because of any great failure."
After the traditional and ever-stirring flag ceremony that opened the event, Kevin Carroll, founder of Kevin Carroll Katalyst LLC, Alexandria, Va, told the attendees 
how "a ball saved my life". 
2009 MDRT President, Walton Rogers, CLU, ChFC, also urged attendees to develop a succession plan for their practices. "One of our most important jobs as advisors," said Rogers, "is to find a replacement for our businesses—someone who will carry the torch when we depart. If we don’t do this, then we fail our family and clients." To help members in pursuit of this objective", he added, "MDRT is expanding a mentoring program that now boasts some 6,000 aspirants."
Day Two built on the passion and excitement of the opening day. Two-time Olympian and World Cup Champion Cary Mullen, who also holds the World Downhill Speed record, highlighted that rigorous training and skill were key to his achievements. But, there was one more key ingredient: a demonstrated ability to overcome fear of the unknown. "What holds us back from achieving extraordinary results are two fears," said Mullen. "These include (1) the survival fear; and (2) the fear of failure. To overcome such fears, you must first identify them, decide that you’re not going to let them hold you back, then lunge forward and enjoy the challenge."
The third day of the meeting served up a compelling mix of inspiration and advice. Julian N. Wise, of Wise Advisory Group, inc., Oakville, Ontario, Canada urged advisors to provide "true comfort" to clients and friends who have lost a loved one. "Our life and business is not about contracts," explained the 31-year MDRT member who lost his own wife to cancer in 2005. "It is about people, commitment, promises made and promises kept."
New York Life President and CEO Ted Mathas also said "Frugality and a return to financial fundamentals are back." He mentioned that times across the country may be difficult, but if there is a silver lining in the current recession, then it is to be found in the public’s return to financial fundamentals. The trend, he said, is reflected in the biggest decline in credit card use in the last 30 years and in a commensurate rise in the personal savings rate.
Following the half-day Main Platform sessions, 2009 MDRT President, Walton Rogers, CLU, ChFC, and 2010 MDRT President, Guy E. Baker, MSFS, CLU, thanked the volunteers during the appreciation luncheon for their time and effort to give back to the organisation.
Over 4000 MDRT members from 56 countries attended the event. The event also saw the participation of approximately 1200 members from the Asia Pacific region.
Showcasing the prestigious Annual Meeting experience to financial services professionals outside North America, MDRT has put together the 2010 MDRT Experience meeting in capital city of Korea, Seoul, happening from 11 – 13 March.
Come and experience dynamic and invigorating educational sessions that will unveil cutting edge sales techniques, technical information and motivational concepts, proven to have helped fellow financial professionals who attend, boost their production—and qualify for MDRT membership!Attendees of the 2010 MDRT Experience will also be treated to the MDRT Executive Committee Panel Presentation:
With more than 150 years of combined industry experience, the MDRT Executive Committee members have achieved both professional and personal success. Most started their professional careers in other industries, but found their passion and true calling in the life insurance and financial services industry. During a panel presentation to be moderated by 2010 MDRT President Guy E. Baker, MSFS, CLU, each member of the 2010 Executive Committee will share how they came into the industry, the focus of their practice and key lessons they learned that helped them develop their practices into the highly productive and successful businesses they are today.Visit our website for additional programme and housing information, and register for the MDRT Experience!
MDRT says Thank You to our Platinum Partners
Korea
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Close to 3,700 MDRT members and non-members gathered at the Busan Exhibition & Convention Centre on 15 May 2009 for the 8th MDRT Day Korea. Two highly acclaimed overseas speakers, 2010 MDRT President Guy E. Baker, MSFS, CLU, and Solomon C. Hicks, a 22-year MDRT member were invited to speak at the meeting. Entitled "Why People Buy", Baker shared about the 7-step selling process and the 4-step buying process in his presentation. Hicks also gave an inspirational speech on "Yes We Can: The Vision, Secrets and Strategies of a #1 Salesman".IDEA BANK
Whole Persons are engaged in a lifetime quest to achieve balance and congruity in all aspects of their lives and continually seek to develop their full human potential. And MDRT encourages members to strive towards creating and maintaining this balance as a way to achieve meaning and significance in their lives.
| 1. | Family Whole Persons spend meaningful time with their spouses, children, mothers, fathers, sisters, brothers and members of their extended families, and strive to make sharing, love, mutual respect and openness the cornerstones of these relationships. |
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| 2. | Health Whole Persons maintain a sound mind and body through study, diet, exercise and lifestyle habits conducive to physical and mental well-being. |
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| 3. | Education Whole Persons seek knowledge and new skills for the enrichment and enhanced effectiveness it brings to life and are enthusiastic about continuing the learning process throughout life. |
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| 4. | Career Whole Persons, guided by a code of ethics, work to become more productive, pursue knowledge and skills throughout their careers, and participate in and contribute to industry and professional organisations. |
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| 5. | Service Whole Persons contribute time, energy, and leadership, as well as financial resources, to community and human service organisations, educational institutions, government, civic and charitable organisations, and other worthwhile endeavours, voluntarily and without expectation of personal gain |
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| 6. | Financial Whole Persons know how to live within their income, to enjoy and share the fruits of their labour, and to plan and implement programs for the creation, accumulation and preservation of capital consistent with the stages of their lives. |
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| 7. | Spiritual Whole Persons live principled lives according to their faiths, and strive to grow in their spiritual development. |
From MDRT Whole Person Guide
Have an interesting idea relating to Whole Person Concept? You can send your article to MDRT Asia Pacific at asiaconnect@mdrt.org.
Finding the right orientation is the key to success. I chose this profession because it was clear to me that I would be responsible for managing and organising my own time.
I have always thought that integrity could be achieved and maintained by devoting my energy to my professional life, my personal life and the people around me. A diary is a primary tool for the job. A diary allows me to keep abreast of my appointments, decide professional goals and arrange work toward achieving them around spending time with our family – the time that is the most difficult to plan and keep.
At the beginning of the week, I plan to spend with my families 30% of time. I commit the remaining 60% to the agenda, keeping 10% free for personal activities (fitness, wellness, spiritual, etc.) or for the community (charity, spiritual service).
Time planning has allowed me to have a child at the age of 46 and to be content and in harmony with myself and other people.
Carlo Minazzi
6-year MDRT member from Italy
I have always thought that integrity could be achieved and maintained by devoting my energy to my professional life, my personal life and the people around me. A diary is a primary tool for the job. A diary allows me to keep abreast of my appointments, decide professional goals and arrange work toward achieving them around spending time with our family – the time that is the most difficult to plan and keep.
At the beginning of the week, I plan to spend with my families 30% of time. I commit the remaining 60% to the agenda, keeping 10% free for personal activities (fitness, wellness, spiritual, etc.) or for the community (charity, spiritual service).
Time planning has allowed me to have a child at the age of 46 and to be content and in harmony with myself and other people.
Carlo Minazzi
6-year MDRT member from Italy
Dear prospect, have you realised that your life is reminiscent of a hamburger?
You start your working life being the main ingredient of the hamburger – the meat patty. Over the years, as your income increases, you will spend it on items that garnishes’ your life; and this is likened to the garnishes e.g. the lettuce, tomatoes, etc.
What holds your entire hamburger intact is the buns; and this is akin to the life insurance plans that protect and ensures what you have worked so hard putting together stays together.
My job is to help you ensure that your buns are ‘thick’ enough to hold the whole burger throughout your entire lifetime. Before we start, let’s talk about what type of burger do you consider yourself to possess at this point in your life?
Carol Kheng
11-year MDRT member from Singapore
You start your working life being the main ingredient of the hamburger – the meat patty. Over the years, as your income increases, you will spend it on items that garnishes’ your life; and this is likened to the garnishes e.g. the lettuce, tomatoes, etc.
What holds your entire hamburger intact is the buns; and this is akin to the life insurance plans that protect and ensures what you have worked so hard putting together stays together.
My job is to help you ensure that your buns are ‘thick’ enough to hold the whole burger throughout your entire lifetime. Before we start, let’s talk about what type of burger do you consider yourself to possess at this point in your life?
Carol Kheng
11-year MDRT member from Singapore
Closely held businesses often have high own equity ratio with no outstanding loan. Many of those businesses are cash-rich, which means they have money to pay premiums.
The good news is many of these companies do not know enough about what insurance can do to protect their dreams and future, along with tax advantages. I suggest asking who the tax accountant is and work together with tax specialists to offer a presentation to the business owner.
Because of the current financial crisis, stock prices are down. This presents a great opportunity for them to transfer ownership. Work closely with tax accountants to develop these clients and help them in the planning of asset building and tax savings.
Hirofumi Morimoto
8-year MDRT member from Kitakyushu, Japan
The good news is many of these companies do not know enough about what insurance can do to protect their dreams and future, along with tax advantages. I suggest asking who the tax accountant is and work together with tax specialists to offer a presentation to the business owner.
Because of the current financial crisis, stock prices are down. This presents a great opportunity for them to transfer ownership. Work closely with tax accountants to develop these clients and help them in the planning of asset building and tax savings.
Hirofumi Morimoto
8-year MDRT member from Kitakyushu, Japan
GET INVOLVED
James J. Van Ham, CLU, CFP, a six-year MDRT member from Lisle, Illinois, has become another MDRT member to receive gifts of recognition from the MDRT Member Referral Program. Referring three members, Van Ham won free registration and travel to the 2009 MDRT Annual Meeting in Indianapolis, Indiana.
The MDRT Member Referral Program encourages you and your colleagues to share with industry peers the benefits of MDRT membership. Download a referral kit, enter to win prizes and share MDRT’s professional and personal network with an associate.
The MDRT Member Referral Program encourages you and your colleagues to share with industry peers the benefits of MDRT membership. Download a referral kit, enter to win prizes and share MDRT’s professional and personal network with an associate.
View more than 150 MDRT Annual Meeting presentations on your computer from the comfort of your home or office. The Video Club Online offers five categories - insurance, motivational, Whole Person, MDRT Foundation, and MDRT Annual Meetings from 1965 to 2008. Watch up to 24 videos during a 12-month subscription.
ITEM NUMBER: VCO28324
Click here to join.
ITEM NUMBER: VCO28324
Click here to join.
Do you have an interesting sales idea or a proven strategy to share with fellow MDRT members? We are keen to hear from you if your ideas are based on the following themes:
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We are also interested in ideas relating to Whole Person Concept, viewpoint on challenges facing the financial services industry, and also case studies that can inspire other members to overcome challenges to win over a client or sell a particular product. You can send your article or content outline to MDRT Asia Pacific at asiaconnect@mdrt.org. |
Proper use of MDRT member identity helps you deliver a clear, consistent message to your clients and the financial services industry. That’s why MDRT encourages you to use MDRT member logos in combination with your existing marketing communication efforts to position yourself as a member of The Premier Association of Financial Professionals. MDRT member logos may be used on business cards, letterheads, proposals, newsletters, press releases and advertisements.
However, you are only permitted to use MDRT member logos in conjunction with your company identification. MDRT member logos should also not be used on cheques, envelopes or promotional materials that may outlive the term of membership such as hats, pens, calendars, directories or permanent billboards.
You can find out more about editorial guidelines and proper logo usage and reproduction from MDRT Member Identification Manual here.
However, you are only permitted to use MDRT member logos in conjunction with your company identification. MDRT member logos should also not be used on cheques, envelopes or promotional materials that may outlive the term of membership such as hats, pens, calendars, directories or permanent billboards.
You can find out more about editorial guidelines and proper logo usage and reproduction from MDRT Member Identification Manual here.
USEFUL LINKS |
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CONTACT INFORMATION
MDRT Asia Pacific Office
Tel: +65 6496 5505
Fax: +65 6336 6449
Email: asiapacific@mdrt.org
Web: www.mdrt.org
Tel: +65 6496 5505
Fax: +65 6336 6449
Email: asiapacific@mdrt.org
Web: www.mdrt.org