Fubon Financial

Youth, Distribution, Diversity and Technology

2017.03.07

Fubon Life Delivers Again with Breakthrough Innovation

Despite the political and economic uncertainties in 2016, Fubon Life’s robust strategies have once again produced outstanding performance. Fubon Life’s unaudited premium revenues in the last four years have grown consistently, with the previous year's (2016) total premium revenues amounting to NTD 493.6 billion, representing a 4% year-on-year increase over the year before (2015). Unaudited first-year premiums totaled NTD 204.3 billion, representing a market share of 16.1% that placed the company in the second place. Unaudited after-tax earnings amounted to NTD 28.43 billion (equivalent to an EPS of $4.09). As a result of this strong performance, the company had exceeded NTD 3.3 trillion in total asset by the end of the previous year (unaudited). Fubon Life’s sales representatives increased by more than 3,000 people, the highest among peers

Fubon Life has also made progress in terms of recruitment, increasing the sales force by 3,011 people with an average age of 30; both achievements are unmatched by any peer in the industry. For the next year, Fubon Life expects to increase employee size by another 7,000 and will continue to expand service locations. The company is developing competitiveness in terms of youth, distribution, product diversity, and technology-based service. It aims to extend its service reach to far corners of Taiwan, and hopes to contribute to social security by offering quality insurance products.

Benson Chen, President of Fubon Life, said that the company will be expanding the size and reducing the age of its employee base. It will expand service locations in urban as well as suburban areas by adopting an "Beyond the Border" expansion strategy. Meanwhile, to accommodate the changing demographics and demands in Taiwan, the company will be introducing more variety of products and services along with FinTech applications to satisfy customers' needs.

Young and Distribution - The Entrepreneurial Career System

Fubon Life has always regarded employees as the most important capital, and its recruitment efforts have earned itself the title of Most Preferred Life Insurance Employer for Finance and Insurance Graduates for six consecutive years. In the last few years, the company has been trying to reduce the average age of its sales force; in 2016, newly recruited sales representatives averaged 30 in terms of age, whereas sales representatives aged 30 and below accounted for 63% of the sales force. People born in the 1980s and 1990s are now the company's most significant sales drivers.

Fubon Life implements an "entrepreneurial career system" that motivates sales representatives to run communication units like their own personal business. The company saw an increase of 37 communication units last year, representing nearly 100% growth from the year before. More than 2,000 sales representatives were promoted to the role of sales manager, including two outstanding 25-year-olds who were promoted directly from clerk to communication unit manager. This is the reason why Fubon Life has been regarded by young people as the preferred place to realize their dream career. Fubon's "entrepreneurial career system" introduces systematic training that teaches employees not only to sell, but also to manage customer relations in ways that support the organization's growth.

In addition to expanding employee size, Fubon Life has also been trying to extend service reach to far corners of Taiwan. Following the launch of "Beyond the Border" program in 2014, a total of 96 the service locations have been established over the three-year period, which added 33% more manpower compared to the previous year. The company expects to establish nearly 60 service locations in major towns and suburban areas this year to complement its expansion strategy.

Diversity - Innovative Products that Grow with Time and Satisfy Customers' Lifetime Insurance Needs

Taiwan is becoming an aged society by 2018; new government policies such as Nursing Program 2.0 and National Pension reform have all been introduced in response to the aging demographics, childless households, and unmarried population. Fubon Life has observed the changes in market demand and government policies closely, and responded by offering consumers more variety of products that complement their existing insurance plans.

Currently, the government is looking to finance Nursing Program 2.0 using specific tax revenues, and to cover the National Health Insurance Scheme by increasing the amount of deductibles. Fubon Life recommends consumers complete their coverage by purchasing nursing insurance, critical illness insurance, and medical insurance in addition to various schemes made available by the government, depending on their needs and financial capacity.

Faced with an aging society, the Financial Supervisory Commission made a decision in 2015 to permit the offering of in-kind benefit insurance policies by life insurance companies. Being a long-time observer of social trends and an active supporter of government policies, Fubon Life introduced its first "health management" in-kind benefit plan followed by a "funeral service" in-kind benefit plan in 2016. Today, Fubon Life is the life insurance company that offers the broadest variety of in-kind benefit plans, satisfying customers' needs from health prevention to terminal service.

Fubon Life plans to launch a usage-based health insurance program in the second quarter of this year (2017) that, combined with the use of wearable devices, offers critical illness and death coverage at reduced premiums depending on the policyholder's exercise habits. Policyholders who average above the required number of paces will be granted discounts on the amount of renewal premiums payable in the following year. This health insurance program is intended to promote policyholders' health awareness by encouraging them to exercise or walk regularly, and thereby reduce the chance of critical illness and extend survival rate.

Technology - Incorporating FinTech and Integrating Physical/Virtual Channels to Deliver Professional, Heartful Service

Banking and insurance technologies are quickly evolving, but Fubon Life has prepared itself for the challenge by developing a new digital business model that enables it to provide more outstanding services. In light of the wave of digital service opportunities, Fubon Life will be exploring the possibilities of using financial advisor bots to assist in the sale and promotion of investment-linked policies. Meanwhile, the company will quicken the development of online insurance application features to capture digital opportunities. Biometrics, smart customer service, Internet of things, big data and blockchain are also viable technologies that the company will be incorporating into its service. This would require further expansion of API service and cloud platform, as well as working with different industry participants to build a smart environment for more convenient services.

Fubon Life is currently the only company that offers digital policy for all personal insurance products and all applications submitted online. Furthermore, it allows policyholders to convert hardcopy insurance policies into digital policies for better service efficiency and environment friendliness.

Fubon Life adopted Microsoft's Office 365 service in 2016 to build its own comprehensive cloud-based life insurance consultation service. It is currently the domestic life insurance company that makes the most active use of a "public cloud." With the commissioning of optical transport network (OTN) and a highly efficient, stable and secured server in the beginning of this year, Fubon Life now has advanced digital tools and FinTech/InsurTech at its disposal to develop and implement applications that can complement the humane services of its sales representatives. This combination of virtual and physical channels is an extension of the company's existing professional capacity, and is a necessary step towards providing heart-full service in the digital era.

Charity - A Focus on Elder Care, Sports, and Senior Citizens

Fubon Life contributes to sustainability, corporate responsibilities, and charity through its insurance profession. The company continues to care for the demented and disadvantaged seniors, using neighborhood programs to spread its influence to far corners of Taiwan. Fubon Life has been organizing charity walk events for six consecutive years as a means to encourage regular exercise among the senior population. Last year, the company worked with charity organizations to deliver meals to lone elders. A total of 10,000 meal boxes were donated during the event.

Fubon Life continues to promote basketball as an "ideal sport for the young and the old." From Fubon Cares (youth basketball camp), Fubon Braves Cup (amateur basketball tournament for university students), Fubon Veterans Cup (basketball tournament for the matured population), to sponsorship of UBA, the company has given basketball new meanings across all age groups.

A Potential World Model Business with Affirmed Achievements

Fubon Life’s business performance has been well-perceived by renowned professional institutions local and abroad! Not only was the company named "Best Insurance Company in Taiwan" five times by World Finance, it was named "2016 Life Insurance Company of the Year" and "Insurance Company of the Year for Agents" by Asia Insurance Review, and claimed 16 major awards in the Faith, Hope and Love Awards of Insurance in 2016, making it the most prominent achiever among industry peers. Furthermore, Fubon Life ranked first in CommonWealth Magazine's "2016 Internet Service Satisfaction Survey." The company is making progress towards becoming the world's model business.