iCON training Groups and Schedules

1
Understanding and developing the life insurance
market Graham Morrall Regional Director
Zurich International Life 5 May 2009
2
Introduction
3
Agenda

• Zurich at a glance
• Regional attitudes to life insurance Zurich
  Wealth Monitor III research
• Developing the market and building our presence
• QA

4
Zurich at a glance
5
About Zurich

• Zurich International Life is part of the Zurich
  Financial Services Group
• Ratings
• 24 consecutive quarters of profit

Moodys A1 Stable S and P AA- Stable
Fitch A Positive
Source www.zurich.com as at 8.2.09 Source
www.zurich.com Zurich Insurance Company as at
8.2.09
6
Regional attitudes to life insurance Zurich
Wealth Monitor III
7
Zurich International Life - Wealth Monitor Wave
III

• The Zurich International Life (ZIL) Wealth
  Monitor is a research report into the attitudes
  and future plans of ZILs key customer groups
  around the globe
• ZIL has conducted the research for the third time
  the inaugural research findings being launched
  in October 2007 and Wave II was launched May 2008
• The research was a quantitative approach on
  clearly defined target group adopting a
  multi-stage random probably method using
  structured Arabic and English questionnaire.
• 500 local UAE residents and 100 Bahraini
  residents were surveyed on their attitudes to
  financial planning and the correlation between
  their financial and lifestyle behaviours

8
Zurich Wealth Monitor IIIFinancial crisis
aftermath financial markets

• Actual/factual impact, implication from economic
  point of view
• Year on year, working abroad less lucrative UAE
  experiencing 10 drop,
• 58 in UAE believe their lifestyle has now been
  compromised by impact of credit crunch
• 75 in UAE are concerned they are not saving
  enough
• Over half dont see any changes in their
  retirement plans due to economic crisis

9
Zurich Wealth Monitor IIIFinancial crisis
aftermath

• Confidence / attitude
• The UAE is experiencing more work pressure
  incidents (41) the number 1 factor being
  tightening of internal budgets and high
  expectations from employers.
• Job security seems to be a concern but nearly 70
  will sit it out 50 believe once an expat,
  always an expat
• One in two are still optimistic over their own
  financial future, with over 50 believing that
  things will get better over the next 12 months
  (one in four are not confident)
• Saving in UAE is ranked the No 1 financial
  priority (44) Within saving, childrens
  education is still the No 1 priority

10
Zurich Wealth Monitor IIIFinancial advice

• The use of a financial advisor is up across the
  board (year on year), with double the amount
  using a local advisor
• Nearly one in two in UAE believe its important a
  firm should have an international focus
• 71 in UAE feel its important to have Takaful
  products available than in BAH (30)
• 50 less people rely on family, friends etc. for
  financial advice than last year

11
Zurich Wealth Monitor IIIChange in investment
decisions

• Year on year, nearly double (27 Wave II) of
  those interviewed in UAE would spend their extra
  income on property (48)
• 27 in UAE have property down as one of their
  current investments
• 40 UAE still respectively rely on their own
  knowledge when buying financial products
• 90 believe in brand reputation in both
  countries, whilst 63 in UAE believe quality of
  product features is important (2nd rank)
• High interest savings (33) mutual funds (27)
  and bonds (18) are ranked 2nd, 3rd and 4th as
  current avenues of investment

12
Zurich Wealth Monitor IIIRetirement planning

• Majority are still over-optimistic and
  under-prepared about their retirement plan
• One in five plan to stay in the region after they
  retire
• Over half dont see any change in their
  retirement plans due to economic crisis (50 UAE)
• 21 in UAE are offered a pension by their
  employer
• A significant increase (over Wave II) in
  retirement saving plans for 31-40 year olds (35
  UAE)
• The gap between realistic age and ideal age of
  retirement stays the same (36 UAE)

13
Zurich Wealth Monitor IIIEmployee benefits

• Gratuity (24) health insurance (22) and
  housing allowance (17) are the top 3 ranked in
  importance for employee benefits in UAE
• 56 (UAE) feel their employer provides adequate
  employee benefits same as Wave II
• 22 more in the UAE are paying additional
  contributions to their employee scheme (53) then
  in Wave II (31).
• In the UAE, those that are financially better of
  as a result of having expatriated are spending
  10 less on lifestyle (sports car, holidays etc.)
  and 41 reluctant to continue to spend as they
  have in the past

14
Conclusions

• Expats appear cautiously optimistic that the
  prevailing/present economic position will
  improve. Around half of the expats in the UAE and
  Bahrain have been in the region for more than 10
  years and therefore have the maturity, tenacity
  and experience to know that the region has an
  extraordinary capacity to bounce back
• Short term expats are feeling the pinch with the
  cost of living and the ability to save being of
  major concern in fact more so than worries
  about job security
• More people also recognize the need to get proper
  financial advice - around a fifth of expats are
  now turning to professional sources rather than
  just using their own judgment or that of family
  and friends
• An overwhelming 90 per cent now rate trust in the
  long security of their investment partner the
  most important priority.

15
Developing the market and building our presence
16
How could a life company support and grow the
market?

• Solutions provider
• Investment, insurance and corporate offerings
• Joint Marketing campaigns
• Broker incentives and client special offers
• Regular training seminars for brokers and clients
• Holistic campaigns
• Protection, retirement road shows
• Building brand presence through effective
  advertising and PR strategy

17
Summary
18
In conclusion

• Importance of understanding the attitudes and
  pulse of the market on a regular basis
• Life Companies need to find ways to support its
  distributors and clients in innovative yet
  effective ways, consistently
• Questions?

19
Thank you
zurichinternational.com
20
Important information

• Zurich International Life Limited is fully
  authorised under the Isle of Man Insurance Act
  2008 which ensures that the company has
• sound and professional management and provision
  has been made to protect policy owners.
• For life assurance companies, the Isle of Man's
  Life Assurance (Compensation of Policyholders)
  Regulations 1991, ensure that in the
• event of a life assurance company being unable to
  meet its liabilities to its policy owners, up to
  90 of the liability to the protected
• policy owner will be met. This protection
  applies to the solvency of Zurich International
  Life Limited and does not extend to
• protecting the value of the assets held within
  any unit linked funds linked to your policy.
• Zurich International Life Limited is registered
  (Registration Number 63) under UAE Federal Law
  Number 6 of 2007, and its activities
• in the UAE are governed by such law.
• Zurich International Life Limited is registered
  in Bahrain under Commercial Registration No.
  17444.
• Zurich International Life Limited is authorised
  by the Qatar Financial Centre Regulatory
  Authority.
• For more information on Futura and International
  Term Assurance, please refer to the product
  brochures and policy terms and
• conditions, copies of which are available on
  request.
• This presentation is not intended as an offer to
  invest.
• Zurich International Life is a business name of
  Zurich International Life Limited which provides
  life assurance, investment and
• protection products and is authorised by the Isle
  of Man Government Insurance and Pensions
  Authority.
• Registered in the Isle of Man number 20126C.
  Registered office 43-51 Athol Street, Douglas,
  Isle of Man, IM99 1EF, British Isles.
• Telephone [phone] Telefax 44 1624 662038
  www.zurichinternational.com
• Calls may be recorded for training and quality
  purposes.