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Zurich to strengthen distribution channel and agency force with first-to-market franchise model

Hong Kong, 14th January 2010 - Zurich Insurance Group (Hong Kong) will be taking a more vigorous approach to business development this year by introducing a first-to-market franchise model that will attract fresh entrepreneurial talent to its life insurance sales team and better cater to customer needs.

The new model, "Zurich Insurance Franchise" (ZIF), is designed to strengthen the group's distribution capacity and thus its share of the Hong Kong market. It will supplement the three existing distribution channels, namely "Zurich Direct Agency" ,"Financial Advisory Management" and "Brokerage Channel."

Eleonore Chow, Director of Agency Distribution & Services, Asia, was bullish about the prospects for the new mechanism. "We believe the "Zurich Insurance Franchise" model will appeal to the more entrepreneurial type of agency entity and thereby help increase our sales through both higher agent numbers and improved productivity."

The new model is expected to contribute about one-fifth of the agency business of Zurich Insurance in Hong Kong, making the agency force one of the top five in the local market within three years. The new franchisees are expected to add another 400 agents to the current agency force by the end of 2010.

Head of ZIF Bowen Wong explained the unique features of the new model at a press conference today: "Entrepreneurial agency leaders under the new agency model will run their business as a franchise, under their own business name. As compared with the traditional agency, the franchisees will enjoy higher autonomy by having direct control of operating profit and the option to capitalize on business succession at the time of retirement."

Other unique features of ZIF include: comprehensive support from Zurich throughout the application and establishment of the new franchise, such as accommodation, quality assurance, recruitment and business development support. Customers of the new franchise will have access to a broader range of insurance products with the option of selecting third party products via an inhouse Independent Financial Advisor.

Bowen Wong noted the positive market response to ZIF since its official launch by early January this year. He said, "We already have three ZIFs signed up so far, and we are optimistic we will reach our target of 20 ZIFs by the end of 2010 in view of the unique features of the new model."