BODI I NSURANCE INSPIRING ASSURANCE INVESTOR PRESENTATION UNDERWRITER
OPERATI ON : Well-known and stable company providing service through 25 branches and 800 representatives, with an experience of 25 years SERVI CE: Over 70 products of 15 types of insurance services MANAGEMENT OF THE COMPANY: CRM solution to control relation between executives and employees, management team with over 10 years experience I NSURETECH TECHNOLOGY: E-Office solution to improve and accelerate the relation between all employees, clients and executives CLAI MS PAYMENT: The fastest claims payment on TPL within only 20 minutes. (Other companies take up to 2 – 20 days) REI NSURANCE SERVI CE: Well experienced in reinsurance service, leader in the sector by owning around 30+ % of the market share COOPERATI ON WI TH AXA GROUP: The sole representative in Mongolia providing AXA health services and looking to expand its cooperation in the near future. FI NANCI AL PERFORMANCE: Net profit increase for the last three years. SECTOR GROWTH: As GDP growth in Mongolia is estimated to be around 6%-8%, same growth would be shown in insurance sector. Insurance penetration is around 10% in developed countries and 4%-5% in developing countries compared to only 0.5% in Mongolia 2
INSURANCE SECTOR HI GHLI GHTS OF THE I NSURANCE SECTOR: I NSURANCE PENETRATI ON AND DENSI TY RATE* * * 18 1/ 10 Total insurance 1 out of 10 people in Mongolia is insured companies World rates, USD Mongolia, USD 0.5% 26% Expenditure on Insurance Sector insurance from annual Growth income MACROECONOMI C AND I NSURANCE SECTOR CORRELATI ON Mongolia’s GDP growth expectation 6.3% 6.2% 5.7% 5.5% 5.0% 5.0% 4.9% 5.0% 26% 27% 16% 15% 2011 2012 2013 2014 2015 2016 2017 2018 2019Q3 2020 2021 2022 2023 2024 ОУВС Дэлхийн банк Сангийн яам Economic growth Sector growth IMF World Bank MoF* • • Insurance sector has increased by more than 1.43 times than the If we presume that insurance sector’s growth would be 1.43 times nominal GDP growth since 2010 higher than GDP growth, insurance sector would be grown by 1.88 • As of 2019Q3, the economic growth was 16% and insurance growth was times in 5 years. 26%. * Ministry of Finance 3 * * Insurance penetration: Percentage of insurance premium in GDP / Insurance density: Insurance premium in per one person * * * FX rate – 2750 MNT/USD
SECTOR POTENTIAL MARKETABLE SI ZE OF THE SECTOR LONG TERM MID TERM SHORT TERM 320 mln USD Gray 150 mln area: USD 40 mln 3.6 12+7 USD billion 12 mln USD mln USD USD 1/3 of the total • Bodi Insurance is estimating that the • Total insurance premium was 40 million • banking There are 150 million USD opportunity for long term marketable size would be USD in 2018. Bodi Insurance company’s system insurance sector. 320 mln USD. sales potential is 12 million USD. • Motor: 22.6 mln USD • Motor: 18 mln USD • Entity – 3.6 mln USD • Health: 127 mln USD • Health: 218 mln USD • Citizen – 1.8 mln USD • Renter responsibility: 0.5 mln USD • Renter responsibility : 29 mln • Regional – 2.2 mln USD USD • Agent/representative - 1 mln USD • Bodi Insurance’s product development • Livestock: 54 mln USD • Bank/ NBFI- 1.5 mln USD team is looking to have 5.1% of above • Broker – 0.7 mln USD market. It will be derived from additional • Haven’t included entity insurance • Online and others-1 mln USD demands and market share in midterm. * FX rate – 2750 MNT/USD 4
COMPANY OVERVIEW VISION: 70+ products 25 years Mid-tier financial services company in Asia. Provide the most or 75+ types of Established in 1995, one of the first MISSION: products to clients companies in insurance market and To help people plan their bright future. operated constantly for 25 years GOAL: To time-travel the 400 years of advancement of 25 branches 800+ representatives established insurers in a decade. The widest sales channel with 3 Have more than 800 representatives in branches in UB city and 22 branches regional and capital city areas regionally. HI STORI CAL MI LESTONE 15 10 5 25 2020 years ago years ago years ago years ago Establishment of Insurance 1400s • Entered re-insurance • Bodi was founded as • High-end healthcare re- • Bodi writes 30% of Bodi latest developments: commission business a travelers’ insurer. insurance: >90% livestock policies. • On-demand products at zero profit. Now • Online channels Bodi’s market share • Started leading in the claim • Integrations + is 50%. service. Motor insurance Insurtech + AI/BI market share: 20% 5
COMPANY STRUCTURE, ORGANIZATION COMPANY STRUCTURE EXECUTI VE TEAM BOARD OF DI RECTORS Name Position Shareholders 1 L.Boldkhuyag Board Chairman 2 G.Saruul Regular member Office of Board of Nomination Committee Directors 3 B.Bilegt Regular member Board of Directors Compensation& Internal auditor 4 Sh.Sukhbaatar Regular member Remuneration Executive Director Committee B.Zolbayar 5 E.Byambajav Independent member Risk Management Executive Committee Executive Director Committee Operations & SHAREHOLDERS Insurance Finance and Risk Legal & Claim Business Director of Operations, Department Development Department Department Director of Finance and Business Development Department Risk Management Department Bogd Bank LLC, 10% B.Bilguun Institutional Administration & J.Bayarmagnai Finance & Insurance Human Resource Legal Division Investment Division Division Division General Online Risk Claim & Insurance Development Management Emergency Division Division Division Call Division Business Branch Development& Executive Marketing Division Division L.Bold, 40% Director of Legal and Claims Director of Insurance Deparment Department Client Service J.Davaasuren B.Khudertulga Division L.Boldkhuyag, 50% 6
PRODUCTS AND SERVICES CORPORATE CLIENTS RETAIL CLIENTS • Agriculture and food factory Mining • Life and health • Production, service, trade Petroleum and Oil • Property • Health Construction and Road • Liability • Tourism Transportation • Vehicle • Reinsurance Bank, Finance, I nsurance • Farming • Livestock The company operates in all provinces and soums through the The company provides insurance to the top entities in Mongolia over 1000 employees and delegations. Insurance The most or over 70 types of 33 types of products contributes to products most of the sales. products: 7
INSURANCE PREMIUM CORPORATE AND INDIVIDUAL INSURANCE PREMIUM BREAK DOWN Constant and stable operation Company has 14% -34% market share Leads in Livestock Insurance in cargo insurance, aircraft, crop The equal ratio of corporate premium and individual’s premium decreases owning 34% of market share insurance, trust insurance the risk of total premium income. Health and Motor (third party) Accident Retail insurance 50.30% 17% 24% Corporate insurance 49.70% Aircraft, (third party) ownership liability BY BRANCHES 2% UB branches 44% Representative 21% 800+ representatives Regional branches 21% Property Cargo insurance 26% 4% 22 branches Motor (own Broker 14% damage) 9% Opportunities to increase sales points * Based on 2018 performance 8
COOPERATION WITH AXA GROUP • Cooperated with AXA Group on AXA from 2020 PPP Healthcare management – the 2014 international health insurance service, as well as provides with AXA corporate Bodi Insurance was chosen as the official • Planning to introduce new health solution, PPP , healthcare, assistance. representative in Mongolia the of world’s product with AXA Group. leading company “AXA Group”. • The Sales of the Bodi Health – the • Expansion of the cooperation product which is offered along with AXA product have been increasing rapidly. 2014-2020 9
KEY DIFFERENTIATORS Widest range of products, sales channels, and business. • Technology • Sales • Re-insurance • Leadership culture • • Highest share in the mandatory markets . Widest range of product offerings. • • Leadership culture Keen digital awareness: • Re-insurance commission business market • Highest number of sales channels including • Financial Innovation = Data + Experience + Process share is 50%. online. • Keen digital awareness: • R&D in Insurtech: Sensors and telematics tests • Modern Omni-channel CRM and Lead – Financial Innovation = Data + Experience + Process • Plug and play tactic for BI + AI. management system. – R&D in Insurtech: Sensors and telematics tests • Marketing automation. – Plug and play tactic for BI + AI. • Specialists and experienced sales managers. Sales channels and Re- insurance Product developments in last 12 months Continuously leveraging our brand and leadership. Making sure our business is: Client Based Leverageable Scalable Net income Operating expense vs. Net income The speed to solve claims on motor insurance: (thousand USD) (million USD) 230 2000s • + 10 working days 358 1.6 2010s • 1 week 2015 • 2 days 575 1.2 2016 • 8 hours 2018 • 20 minutes 2020 • Additional services '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '13 '14 '15 '16 '17 '18 '19 10
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