Anthony Perkins

1
Anthony Perkins Director Business Systems
Insurance Services HSBC Technology Services
2
The HSBC Group

• Who we are The HSBC Group is one of the largest
  banking and financial services organizations
  in the world, with well established businesses in
  Europe, the Asia-Pacific region, the Americas,
  the Middle East and Africa.
• Head office HSBC Holdings plc is incorporated in
  England, with its head office in London.
• International brand The establishment in 1999 of
  HSBC as a uniform, international brand name
  ensured that the Groups corporate symbol has
  become an increasingly familiar sight across
  the world. HSBC differentiates its brand from
  those of its competitors by describing the
  unique characteristics which distinguish HSBC,
  summarized by the words The worlds local bank.
• Assets US1,502 billion, an increase of US222
  billion, or 17 per cent,
• since 31 December 2004
• Profit (pre-tax) US20.9666 billion, an increase
  of US2.023 billion, or 11 per cent, over 2004.
• Capital strength Tier 1 capital ratio 9.0
  Total capital ratio 12.8
• International reach Over 9,700 offices
  worldwide.
• Staff More than 260,000 employees in 77
  countries and territories.
• Customers More than 110 million worldwide, with
  a total e-customer base of
• over 20 million.

3
HSBCs largest and best-known subsidiaries
4
HSBC Technology Facts

• HTS HSBC Technology Services
• Centers of Excellence
• Domain Owners
• HSBC is a major user of advanced technology
• 20,000 IT staff all over the world
• 3.8 billion USD annual technology spend in 2005
• HSBC maintains its own private telecommunications
  network one of the worlds largest to deliver
  IT services to customers and staff globally
• HSBCs web sites attracted more than 600 million
  visits in the first 6 months of 2005
• e-Channel includes Internet, PC banking
  Telephone Banking versus fixed and mobile phones

5
Technology Challenges/Opportunitiesof a Global
Organization

• Challenges in integrating a woven web of diverse
  architecturally different legacy/point systems
• use of Group systems
• R2 standards and reuse strategy
• control and standards over architectural
  diversification
• Global standards across diverse markets and
  products (e.g. HUB)
• wide array of compliance and regulatory rules
• cultural differences, e.g. Sharia Islamic law
• Focus on Global standards Integration sometimes
  overshadows business needs
• Reuse strategy lowers development cost, hasten
  delivery times and facilitate global integration
• Global initiatives on common regulatory
  requirements, e.g. Basel II, Anti Money
  Laundering, Anti Terrorist, and SOX

6
Insurance in HSBC

• Globally, HSBC offers a wide array of Personal
  Commercial Insurance Products
• PC
• Life
• Health
• Accident
• Income Protection
• Credit
• Education
• Travel
• Office Insurance
• Golfers Insurance
• Helper (Domestic Helper) Insurance
• Etc.

7
HSBC Group Insurance Global Presence
Countries and territories
Business Type
Argentina, Brazil, Canada, France, Hong Kong,
Ireland, Malta, Mexico, Singapore, United
Kingdom, United States
Life Insurance Underwriting
Cayman Islands, Ireland, Singapore, United States
Life Re-insurance Underwriting
Argentina, France, Hong Kong, Ireland, Macao,
Mexico, Singapore, United Kingdom, United States
Non-Life Underwriting
Guernsey, Ireland, United States
Non-Life Re-insurance Underwriting
Saudi Arabia, Malaysia
Takaful
Hong Kong
Medical Insurance Underwriting
Bermuda, Cyprus, Hong Kong, India, Korea, Middle
East, Philippines, Singapore, Taiwan, United
Kingdom
Insurance Broking
Middle East, United Kingdom
Pensions/ Actuarial Consultancy
Argentina, Brazil, Hong Kong, Isle of Man,
Mexico, United Kingdom
Pensions Administration
Australia, Brazil, Brunei, Canada, Czech
Republic, Egypt, France, Hong Kong, Hungary,
Indonesia, Malaysia, Malta, New Zealand,
Pakistan, Panama, Philippines, Saudi Arabia, Sri
Lanka, Switzerland, Thailand, Turkey, United
Kingdom, United States, Vietnam
Agency
Guernsey
Captive Insurance
Bermuda, Cayman Islands, Guernsey
Captive Management
8
HSBC Group Insurance Global Business
Total
South America
North America
Asia Pacific
Europe
14,965
1,069
2,081
3,362
8,453
Premiums
3,155
Revenues
1,681
182
334
410
755
Attributable Profit
US m
US m
US m
US m
US m
22,765,051
4,693,144
11,252,114
1,771,979
5,047,814
Policies - Personal
144,851
5,118
87,799
51,934
Policies Commercial
In 2005, Insurance accounted for 11.15 of HSBC
Group's Attributable Profit
9
Insurance in HSBC, North American Strategy

• Execute flawlessly on the cornerstone of our
  business
• Rebuild a sustainable business model around
  e-commerce, telesales
• Build a reinsurance business complementary to
  other HSBC customer groups
• Continuous improvement in everything we do
  faster, better, cheaper
• Develop/enhance product solutions for all Bank
  customer groups
• Create a nationwide agency sales force offering a
  wide variety of insurance

10
Insurance in HSBC, North American Distribution
Channels

• Bank Branches
• Personal Financial Services
• Commercial Banking
• Consumer Lending
• Credit Card Services
• Auto Finance
• Mortgage Services
• Securities Brokerage
• Private Banking
• Direct Internet
• Retail Services
• Taxpayer Financial Services
• Agency

11
HTS (HSBC Technology Services) Challenges

• Varied customer segments
• different affordability levels,
• different objectives/needs
• diversified insurance product basket for
  different customer segment/needs
• Relationship based selling across a wide spectrum
  of businesses - cross selling to all product
  lines customers
• Multi-channel desktop (underway)
• Optimization cost efficiency of back office
• Global Data Warehouse to support customer
  demographics and propensity analytics (data
  driven approach to selling)
• Differentiated Customer experience
• IPortal initiative componentization and reuse
  of common functionality
• Personalization through any channel
• Self service selling KIOSK
• Carrier Integration
• Online applications for Life Insurance

12
Our Insurance Agency Distribution Strategy

• Leverage on 48 million Household customers
• Direct-to-consumer distribution channel
• Broad range of Life Health insurance products
• Needs-based, consultative selling strategy
• Establish joint marketing partnership with a best
  in class, well recognized, trusted top
  manufacturer and national distributor
• HSBC card carrying agents
• HSBC branded product brochures

13
Why E-Z Data

• Comprehensive Agency Management System
• Support Life insurance
• Robust commission module
• Case Management
• CRM Marketing functions
• Built-in Reporting functionality
• Architecture
• Shared environment model quick implementation
  for a pilot

14
HSBC and E-Z Data Implementation Fast Forward

• Appointment Manager supporting appointment
  scheduling through self service KIOSK
• Robust Commission requirements to support
  different commission models from different
  business lines
• Smart Integrator to ease integration with other
  Bank Systems.
• EZ-Data, a potential component in the IPortal
• Varied EZ-Data implementation to support
  different lines of businesses
• Facilitate carrier integration
• Enforce compliance requirements

15
Summary

• Leverage on business partners
• Similar culture
• Results-driven orientation
• Robust technology that fits your architecture
• E-Z Data and AIG, partners we feel positive about

16
(No Transcript)