agents as wealth managers
TRANSCRIPT
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HOULD IN URANCE
AGENT BECOME
WEALTH MANAGER?
Executive Briefng o Trend andBehaviour o HNWI in theirInvestment and Advisor
Preerence
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About The
ResearchStudy ofFuture
Trend andNeeds of
InsuranceAgents and
HNWI
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The study is an Executive briefng oa rom:
>2 years, International, Multi-Millionollar research into !lobal, "sia#acifc, and Indonesia$s trends o:
"sia #acifc and Indonesian Mar%etissues
!lobal and "sia #acifc &'(Ibehaviours, advisors criteria andinvestment )reerence
Mar%et trust and behaviour trends
*egulatory changes a+ecting thefnancial mar%et
Individuals (HNWI)Research Study
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The study is an Executive briefngo a rom:
>*e)orts rom !loballyac%noledged !overning odies
and .onsulting com)anies: I./#, 0#/, '/#
#riceaterhouse .oo)ers, oston.onsulting !rou)s, Mc%insey!lobal *e)ort, .a)gemini, Merryl1ynch, night 0ran%, Edelman, *.(ealth Management, .redit/uisse, 3isa, Master.ard, &arris
Interactive
Individuals (HNWI)Research Study
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R!FI"# !F ASIAACIFIC$S HNWI
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High Net WorthIndividuals (HNWI)
What is aHigh Net
WorthIndividuals(HNWI) %
Individualswho has
investableassets in
excess o !"#$%%%$%%%$&
Classi&cation Wealth ('S)"4uent 566,666 - 5,666,666
&'(I 5,666,666 - 7,666,666
3ery &'(I 7,666,666 - 76,666,666
8ltra &'(I >76,666,666
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Asia aci&c HNWI
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Regional ro*th
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Asia aci&c HNWIWealth istribution
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Asia ac&ci HNWIro*th +,-- .+,-+
Indonesia$s&'(I
)o)ulationgros >59rom 2655 to
2652
W l h
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Wealth/anage0entreferences
&'(I around the globe )uts thecom)etency o their advisoras highlyim)ortant; 12345 among &'(I
surveyed )ut it as most im)ortant &'(I )reers to have:
Single Fir0 ith Tea0 of #67ert advices
Holistic A77roach andWealthreservation strategies but ith o7ti0alro*th
#roessional /ervices ith regular
scheduled re7ortingon investmenterormance
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Wealth /anage0entA77roach
5= #reer to or% ith /ingle frms ith team o ex)erts2= 1isten to (ealth "dvices rom amily more than a single ex)ert
advisor
= (ants measurement o )rogress hile able to retain and )reservetheir ealth
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Wealth /anage0entRelationshi7
5= (ants to have a )anel o s)ecialised ex)erts to advice them2= (ant to have more )ersonal control on the ability to manage their
investments= #reer to have a (ealth Manager ho can hel)s them access more
than
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Wealth /anage0entServices
5= 1i%e to have a )ersonalised service rom their (ealth Manager2= #reer to have a more )roessionally )re)ared communication and
scheduled re)orting on investments results rather than an ontimeand direct contact
!ource' Pacifc World Wealth (e)ort rom *a)gemini and (B* Wealth +anagement
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Trust "evel to Wealth/anagers
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HNWI Invest0entortfolio
5= &'(I in "sia #acifc are moreaggressive, exce)t in @a)an, com)ared torest o the orld
2= "verage #ortolio has over >96 o"sset in high return Investment vs; 26
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HNWI Invest0entortfolio
!ource' Pacifc World Wealth (e)ort rom *a)gemini and (B* Wealth +anagement
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Indonesia$s HNWI"andsca7e
/ome Mar%et ata about
Indonesia$s groing &igh 'et(orth Individuals A&'(I=:
Indonesia in 2655 has theorld$s largest increase o &igh
'et (orth Individuals by 9BAin the )eriod o 266B-2655=,higher than India and .hinaA2 and ?5 res)ectively=
Indonesia has
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Invest0entAllocation
Asia aci&c$s HNWIInvest0entAllocation
Indonesia HNWIInvest0entAllocation
#
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e0and ForFinancial Advice
!ource' .lobal Wealth +anagers !urve/ ,%#, rom "atamonitor
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=Indonesia$s HNWI"oo>ing For%
-3 C!/#T#NT
A?IS!RS+3 SIN"# C!/AN@
:3 W#A"THR#S#R?ATI!N
R!WTH
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WHAT IS W#A"TH/ANA#/#NT%
0uture orm o an Internationally *ecognised Insurance"gents
Wh i W l h
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What is Wealth/anage0ent%
(ealth managementas an invest0ent.
advisorydisci)lineincor)orates:&nancial 7lanning,invest0ent 7ortfolio
0anage0entand anumber o aggregatedfnancial service
" )roessional servicehich is the combination
o &nancialinvest0entadvice= accountingta6services= andlegalestate 7lanning
or one ee; In general,ealth management ismore than
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4 As7ects of Wealth/anage0ent Service
TotalWealth
/anage0ent
WealthCreation
WealthAllocation
WealthAccu0ulat
ion
Wealthreservati
on
Wealthistributio
n
1 St f W lth
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1 Ste7s of Wealthlanning rocess
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Co07lete Financiallanning
TotalFinancial
lanning
CashEo*andCred
itlanning
Ris>and
Insurance
lannnin
g
Invest0e
ntlanningRetir
e0ent
lanning
Ta6
lanning
#state
lanning
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for InsuranceAgents
Increasingly #ducated and co07le6 client needs
"ess ro0otion incentive 0ore ease of transaction=relationshi7 oriented= lo*er cost of transaction
7roduct oriented rocess oriented
refer those *ho can oGer distinctive valuesdiGerentiation
International Co07etition *ith the co0ing of A#C
+,-4
Increasing tougher regulation by !
Increasing co07etition fro0 local bodies (!therinsurance co07anies= 8ancassurance bodies=
Financial cor7orations= etc3)
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Total re0iu0 ContributionJ
8ancassurance vs3 Agencies
"gencies ancassurance9;66
B;66
D;66
;66
?6;66
?5;66
?2;662655 2652
ancassurance )remium groth in 2655 is ?5,hile rom agents only 57; y 2652,ancaassurance has contributed more thanagencies channelG ?6;? o 2652 total lie insurance
)remium com)ared ith agencies contribution o
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are "osing theCo07etition
Most insurance com)anies citedancassurance as a %ey strategic mar%etor increasing revenue; ancassurance)roducts are chea)er, can be tailormade or s)ecifc ban%ing )artner, and
easier to o+er to a ready database oban%ing clients
/ome insurance com)anies erecreated as @oint 3enture s)ecifcally tomar%et ancassurance )roduct ith
great success, e;g;: "H" Mandiri, .IM/unlie
an%s are aggressively strategicallyim)roving their (ealth Managementsta+s com)etencies and )roducts,
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Financial Advisorrofession
*egulation or (ealth Managersto be certifed is undere)Mena%ertrans regarding/'I AIndonesia (or%ing.om)etency /tandard= 'o:
566IIM266B, 0inancial /ector,an%ing /ub /ector, (ealthManagement ivisionJtoritas @asa euangan AJ@= has drated several regulationsthat ill have high im)act to the 0inancial Industry:
The #roessional title o KInvestment0inancial "dvisorL illbe regulated by Jtoritas @asa euangan AJ@=; Theregulation drat states that to have the KinvestmentadvisorL title, a fnancial )roessional must be )roessionallycertifed ith a orldide recognised certifcation such as.0#;
The )roession o K0inancial #lannerL ill be alloed to sell
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Insurance Agents"andsca7e
e more strategic /anage0ent, less tacticalsales Mindset
More 7rocess oriented, less )roduct oriented
/ee% international standards of conduct, not
com)any only trained behaviour Solution 7rovider than
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The Kuestion isL
Co07onents of
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Co07onents ofCo07etency
rofessional
Co07etency
Skillsand
Knowledge
Experience
SoftSkills
Co07onents of
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Co07onents ofCo07etency
rofessional
Co07etency
Skillsand
Knowledge
Experience
SoftSkills
"cademicegree
Co07onents of
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Co07onents ofCo07etency
rofessional
Co07ete
ncy
Skillsand
Knowledge
Experience
SoftSkills
#roessional.ertifcation
.ontinuous
#roessional
EducationN
Ex)erience e;g;:
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Standard of aWealth /anager
#67erienced
no*ledgeable in Financialliteratures and current ne*s
S>illed in Financial &eld
rofessional Conduct
ood Soft S>ills andCo00unication S>ills
A 7art of a co07any of oodStanding
rofessionally Certi&ed *ith
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IndonesianInsurance Agents
Insurance Agents NeedTo 8e /ore than a good
agentsL They need tobe Financial Advisors
Wealth /anagers toreach the ne6t level of
success
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THANK YOU
Presented By:
Pet Hen Oei, B,Eng, CFP, QWP