AIA Premier Academy

Rev02 dated 01/10/2013

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Rev02 dated 01/10/2013
MY TOOLS Goal Setting
AIA confidential and proprietary information. Not for distribution.
Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program MY ROLE
IMPORTANT NOTICE
MY TOOLS section is part of the 4 main modules in SEED program.
This is a facilitator-assisted program. Training using this participant guidebook
must only be conducted by facilitators certified by AIA Premier Academy.
The contents of this guidebook is meant to be used as individual reference during
and after the classroom training. It is not intended to be used as part of group
visual presentation aids. Where applicable, the contents shall not be the absolute
reference on any subject related herein.
Thank you.
AIA confidential and proprietary information. Not for distribution.
Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Performance Model
MY TOOLS
Life insurance has a unique
and clear business model.
Business model answers the
question of How do I make
money in this business?;
What do I need to do, to
make money?
1
New business Renewal business
Income
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Performance Model
MY TOOLS
The new business that the
Planners sell is dependent on the
number of sales they make and the
size of the sale.
These are the two important
indicators that will determine the
amount of premium that you will
be able to collect from the sales.
These indicators are Productivity
and Average Case Size.
Productivity Average case size
First Year
Premium (FYP
First Year
Commission
(FYC)
Income
2
P A
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Performance Model
MY TOOLS
This refers to the number of new
policies that are issued for a
Planner in any given month. While
there is bound to be a fluctuation
in the number of policies from
month to month, the usual
measure is the average number of
policies for any number of selected
months. Productivity is also the
end result of the sales activity of a
Planner.
Productivity
Average case size refers to the average of all the policies
in a standard frequency. It is common for Planners to sell
policies of different frequencies (monthly, quarterly,
biannually and annually). Example:-
If a Planner has 3 annual policies issued in January with a
FYP of RM 1800, RM 1500 and RM 2400, what is the
average case size for the annual cases?
Average case size = 1800 + 1500 + 2400 = RM 1900
3
The average case size is RM 1900 for annual premium.
This is an indication of the Planners market that is,
where the Planner is doing business in the market place.
Average Case Size
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Performance Model
MY TOOLS
Taking recognition of the above performance indicators, lets look at the way these indicators
come together and make up the performance formula.
The formula is as follows: -
Production = (Productivity x Average Case Size) Frequency
Example - Planner: Gordon
Performance areas Factors
Productivity 4
Average Case Size 1800
Frequency 12 months
(4 x 1800)12 = 86,400
Potential production for Gordon, if he
maintains the same level of performance for
the next 12 months is FYP 86,400
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Process & Tools
MY TOOLS
Set your goals. Once, you are clear about
the goals, the next thing is to convert the
goal into money needs.
How much money do I need to realize
that goal at the end of the timeline?
1
Once the monetary value has been
determined, you need to set the amount
of first year premiums that needs to be
collected so that it will generate enough
commissions. Bear in mind that the
amount of premiums collected depends
on number of cases sold and the market
that you are working on.
The next step is to define the activity standards.
2
3
Covert goal to
money needs
Determine First Year
Commission
Determine FYP
required
Estimate average
premium size
Define activity
standards
1
2
3
4
5
6
How much money do I need to achieve
the goal?
How much commission is needed to
generate the cash required?
How much premiums that I need to
collect?
Based on the list of names that I have,
the estimated premium size would be
RM ________.
How many policies that I need to sell?
How many prospects that I need to have?
How many appointment I need to make?
Calculate the
number of cases to
be sold
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Process & Tools
MY TOOLS
Gordon aspires to buy a
condominium unit in Klang
Valley. He estimated that
he needs about another
RM 50,000 by the end of
the year, so that he can
use the cash for the first
down payment and other
costs. After listing down
particulars of prospects, he
estimated that the average
premium size that he can
collect is RM 2400
annually.
Sample
Covert goal to
money needs
Determine First Year
Commission
Determine FYP
required
Estimate average
premium size
Define activity
standards
1
2
3
4
5
6
Initial cost of buying a condominiumunit is
RM 50,000.
First year commission required is RM 50,000.
Based on ILP first year commission rate, the FYP
required is RM 200,000 (RM 50,000/0.25).
Based on general standard of closing ratio of 10
prospects to 1 policy, the number of prospects
that Gordon needs to approach is between 60 to
70 prospects a month.
If the premium payment frequency is annual, the
calculation is as follows: -
The average annual premium size was estimated
at RM 2400.
200,000
(2400 x 12)
= 6 - 7 cases a
month
200,000
(28,800)
=
Calculate the
number of cases to
be sold
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Process & Tools
MY TOOLS
It is important for a new Planner to know
his area of strength and improvement
required. It is important in the first 30 days,
for you to know your own activity to sales
ratios. The minimum benchmark is 10
approaches made, leading to 3 Fact Find
interviews, leading to 1 sale. This is not as
meaningful as your own statistics.
So, know your ratios. Then, know the area
that needs help from your supervisor. The
idea is to get to know yourself better with
the sole intention, to improve performance
and achieve the goal set. Use Monthly
Activity Sheet (MAS) diligently.
Monthly Activity Sheet
MONTHLY ACTIVITY SHEET
Planner Gordon Cheng Month August 2013
No. Prospects
Sales Activities (Dates)
Approach Fact Find Close FYP (RM)
1. Amy Chong
2. Chris
3. Seelan
4. Daniel
5. Margaret
6. Adam
7. Malik
8. Gary
9. Sharifah
10. Murugan
TOTAL
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Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Process & Tools
MY TOOLS
Analyzing Performance
MONTHLY ACTIVITY SHEET
Planner Gordon Cheng Month August 2013
No. Prospects
Sales Activities (Dates)
Approach Fact Find Close FYP (RM)
1. Amy Chong 2/8
2. Chris 2/8 6/8 8/8 1800
3. Seelan 5/8
4. Daniel 5/8 10/8
5. Margaret 5/8
6. Adam 7/8
7. Malik 7/8
8. Gary 7/8
9. Sharifah 8/8
10. Murugan 8/8
TOTAL
10 2 1 1800
Gordons performance in
August 2013: -
Approach to Fact Find Interview
Ratio
10 to 2
Fact Find Interview to Close
Ratio
2 to 1
Which area that Gordon needs
to improve?
AIA confidential and proprietary information. Not for distribution.
Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Process & Tools
MY TOOLS
Analyzing Performance
MONTHLY ACTIVITY SHEET
Planner Gordon Cheng Month September 2013
No. Prospects
Sales Activities (Dates)
Approach Fact Find Close FYP (RM)
1. David 1/9 5/9
2. Sugumaran 1/9
3. Ann Lim 3/9 10/9 10/9 2400
4. Sofia 1/9 6/9
5. Fiona Tan 3/9
6. Frances 3/9
7. Chong 3/9 11/9 13/9 1750
8. Lim 4/9
9. Devan 4/9 7/9 7/9 2300
10. Fareez 4/9 7/9 10/9 1900
TOTAL
10 6 4 8350
Gordons performance in
September 2013: -
Approach to Fact Find Interview
Ratio
10 to 6
Fact Find Interview to Close
Ratio
6 to 4
Has Gordon made any
improvement from last month?
Which area that Gordon needs
to improve?
AIA confidential and proprietary information. Not for distribution.
Rev02 dated 01/10/2013
AIA Premier Academy (APAc)
SEED Program
GOAL SETTING
Monthly Activity Sheet
MY TOOLS
MONTHLY ACTIVITY SHEET
Planner Month
No. Prospects
Sales Activities (Dates)
Approach Fact Find Close FYP (RM)
TOTAL