NTUC Income clinches the inaugural "Insurance Company Of The Year" Award, which is jointly organised by the Financial Planner and Channel News Asia.
After a rigorous round of judging, NTUC Income eventually won this prestigous award against strong competition. All this was possible because of our co-operative principles and practices, and the valuable support from our policyholders and business associates.
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SUBMISSION BY NTUC INCOME FOR THE AWARD |
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1. Demonstration of Commitment | � |
Our mission statement is "NTUC Income provides insurance and related
services to meet the needs of the people at lowest possible cost and of the
best possible quality and benefits based on co-operative principles."
This mission statement has guided our strategy and operations for the past
decade. We operate efficiently, with an expense ratio that is 10 percentage
points lower than the market. This allows us to reduce our premium rates,
and to distribute a larger surplus to policyholders.
E-commerce will play an important role in our marketing. We have an active
website that attracts 2 million hits a month, and receives 1,500 visitors
every day. Our target is to conduct 20% of our business through the internet
by 2004. |
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2. Ability to respond to customer needs | � |
NTUC Income is innovative in launching new products to respond to customer
needs.
During the 1980s, we launched our annuity products for the aging population.
We introduced a 15 year guarantee and the participating contract, to address
the challenges of marketing this new product. These innovative features
allow us to achieve a market share of 50% and created a new market for the
life insurance industry.
To cope with rising medical costs, we introduced a medical plan that
provides up to $240,000 coverage, and is available up to age 80. To cope
with intense competition in the motor insurance market, we successfully
introduced a quality plan which requires repairs to be carried out in
approved repair shops. We also launched a travel insurance that is activated
by a telephone call.
To help policyholders to cope with the economic downturn, we lowered the
interest rate on our policy and mortgage loans, launched a premium relief
scheme, and started a helpdesk to provide financial advice and counselling
to policyholders. |
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3. Quality of service in all activities | � |
We are commited to deliver quality service to our customers. We obtained
ISO9002 certification in 1997 and achieved the Singapore Quality Class in
1999.
We monitor 100 quality indices in 13 broad categories, covering all areas of
operations, including policy issue, claims settlement, representatives''
performance and policyholders' satisfaction. These indices are reported
monthly against targets.
These quality indices are reviewed yearly. The overall performance index improved from 78% in 1997 to our 80% now. |
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4. Financial Stability | � |
We are rated A(pi) by Standard and Poor''s based on our published results in
1997. The rating agency recognised our strong earnings peformance, driven by
sound underwriting, efficient cost base, solid growth and good use of
information technology.
At the end of 1998, our accumulated surplus amounted to $448 million,
representing 13% of our liabilities of $3.5 billion, and after full
provisions due to the Asian financial crisis. By mid 1999, our free surplus
has increased to over $1.0 billion. |
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5. Contribution to Society | � |
In 1998, NTUC Income contributes $1.8 million towards the community - to
support arts, sports, healty lifestyle, education, charity and other worthy
causes. This total expenditure represents about 1.0% of our surplus. In
addition, NTUC Income raised a total of $400,000 for the NTUC Education and
Training Fund.
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