Post on 29-Nov-2014
description
Selling Life Insurance, Pensions and
Wealth Management - for HSBC
Dr Patrick Dixon Chairman Global Change Ltd
Patrick Dixon is Chairman of Global Change Ltd, Author of
15 books and has been ranked one of the 20 most
influential business thinkers alive today (Thinkers 50)
Future of the insurance industry
fro HSBC (2008)
500 videos of keynotes
www.youtube.com/user/pjvdixon
Over 4 million views
Dixon’s Futurist Website
www.globalchange.com/
14 million unique visitors.
F ast
U rban
T ribal
U niversal
R adical
E thical
As important as health and education
Advisors need to respond faster
• Web makes
clients
impatient
Wild Card Impact on Insurance / Wealth Management
Low probability, high impact events insurance Your mission really matters – death with no cover (story)
Sovereign Wealth Funds • >$3.5 trillion by early 2008
• Expect big impact on different sectors
Everything you sell
depends on emotion
Don’t believe market research
Shows what insurance purchasers want today
but they will behave differently tomorrow!
Fast
This ad about life and death was
banned on UK TV! Why?
A news story can destroy
a brand in a week Fast
TRUST at RISK
Hard to gain
Easy to lose
Example: Retail
Investment Funds
• Most fund managers do not recommend their own funds to friends or family
• Growing demand for
independent financial advice
1 billion
children in
Africa and
Asia means
more parents
need life cover
China – 23 million people a year cities 500m 800m by 2020
66% of over 50s in Asia by 2050
• 81 million now
over 60 in
India
• Big impact on
China growth
Europe
Dying
4 couples
needed to
produce just
one great-
grandchild
1 million
voters over
90 years old
in Italy by
2026
Retirement Age is
Last Century Idea
• Many will work beyond 70 yrs and still have
long retirement
• Huge wealth inherited by over 70 year olds
– Second generation middle class
• Home owners will release capital
Surprised to be still alive and well
• Most people think they
will die 5-6 years earlier
than official figures (UK)
• Government figures
also too conservative
• Result: Most people
are going to live at
least a decade longer
than they imagine
Eat more – weigh less
• 30% of US
newborns will
become diabetic
• $100bn cost per
year
Can we stop ageing ?
Ageing Hair Follicles Hair in all the wrong places
Hair regrowth – boom industry
chemicals, gene treatment, cloning
Sexual Performance
Permanent Hair Colour
• Adenovirus
• Infected mouse hair cells
• Permanent colour change
Treatment which restores and
maintains the youthful elasticity of
hardened arteries – and helps
wrinkled skin. Global sales?
Elastomore
Intravenous
Facelift
Total body lift – works in mice and rats
Grow New Teeth
• Pigs teeth
grown inside
rats
• Mice grow new
teeth from nerve
cells / gum
tissue
Successful Heart repair
• Inject bone marrow stem cells after bypass
• Improves heart function up to 85%
Urban
Near-perfect repair
of heart or brain
damage following
coronary / stroke
Your
Brain
Can
Repair
Itself
Daily
Brain Function Enhancement
Women with male brain
Cure for old-age
loss of sight
• Macular degeneration – 10
million affected in US
• Single injection could restore
sight
Cure for Deafness
Gene in people over 100 is same as
that in long-lived yeast and worms
We will copy animals that don’t age
Turtles, sturgeon fish , some humpback whales
Expect major unrest from growing
gap between rich and poor
Life Insurance is a Tribal Product
People need to belong
Sense of identity
Community
Life insurance is always bought for other members of the same tribe
HSBC Insurance culture
Tribal
Female tribe • Most online
accounts are
operated by
women
• Most household
bills paid by
women
• Most new jobs
won by women
Urban Tribal
Life Insurance: Tribal Messages
• Marketing: We are here to protect your family, to
pay out generously and quickly if something
happens to you, giving you peace of mind at a
fair price. We believe in the value of what we do
for you.
• Investor Relations: Our mission is to make
shareholders as much wealth as we can without
breaking the law and landing up in prison. We
raise life insurance premiums as high as we can
get away with, and pay out as little as possible.
Insurance and Pensions
Consolidation
2010-2020
Mass market services
Premium relationships +
resource management
India Insurance Market
• Total Insurance premium 2% of GDP
• Below world average of 7.8%
• Insurance penetration only 1.95%
• Worldwide, Insurance used as risk cover
whereas India = tax-saving and investment
• 250 million middle class population can be
unleashed by repositioning as risk cover
Urban Universal
la
Impact of online competition for life
insurance and wealth management
• 3 years ago who was talking about
Youtube? Did not exist.
• No advertising
• 400 million videos viewed a day
• 12 months later bought for $1.6bn
Environment
Single Issues
Hidden commission
Gene tests insurance
Iraq war
Funding Medicare
Radical
Genetic Prophecy – Are We Ready?
Genes for speech, memory, criminality,
depression, obesity and stable marriage
• FOXP2 gene is vital to language and speech development
• 17CREB genes are all needed for learning and memory
• Vasopressin receptor gene on chromosme 12 – huge effect on mating and pair binding in prairie voles.
• Low monoamine oxidase A activity on X chromosome strongly linked to violent, antisocial or criminal behaviour
• Gene for obesity: 6% have MC4R gene
• Gene linked to serotonin production strongly linked to depression. CREB1 carries 80% risk of depression – in women
Sustainability
Global Warming - facts
CO2 at highest level for 1 million years
Biased advice?
• Commission disclosure not enough
• Disclosure of commissions on all products
• Payment for advice, not activity
Payment by Commission
• Temptation to oversell
• Temptation to sell high commission products
Independent or Independent?
• UK customers lose
£140m a year - sold
investments that offer
highest commission
rather than most
suitable
• Source UK FSA
Advice – Price Pressure
• Few customers will agree to pay as much for
advice as they did in commissions
New trend – get a life
• 10,000 US, Japanese and UK
managers
• Work-life balance is now first or
second most important factor in
looking for a job
• Second greatest career priority in
1,000 young managers
Ethical
Managing imbalance is about friends and family
Making a Difference
• Growth
• Profits
• Shareholder value
( + customers…)
Companies will change how
they talk Ethical
Individuals talk about…
• Own needs
• Family + friends
• Community
• Wider world
Ethical
The basis of every sale for an
insurance company
• For individuals – protecting wealth
• For family – providing for their future
• For community – or society enhancing
• For the whole earth – the good of all
Leaders tell their own good news story
Take Hold of Your Future - Slides globalchange.com/ppt
10 million unique visitors
Patrick Dixon is Chairman of Global Change Ltd, Author of
15 books and has been ranked one of the 20 most
influential business thinkers alive today (Thinkers 50)
Future of the insurance industry
fro HSBC (2008)
500 videos of keynotes
www.youtube.com/user/pjvdixon
Over 4 million views
Dixon’s Futurist Website
www.globalchange.com/
14 million unique visitors.