While other institutions have been shoring up balance sheets and counting their losses, Zurich Financial Services Group has emerged largely unscathed from the worst of the economic crisis and now has ambitious plans to accelerate growth in Asia. Having chalked up an operating profit of US$1.5 billion for the third quarter last year - the 27th straight quarterly profit - the group is looking to build on the strong display of its life insurance division with further hiring and an aggressive push in fast-expanding markets. 'We will look at any acquisition opportunity that gives interesting skills or a distribution [network], if it is at a decent price; otherwise you are better off building it yourself,' says Mario Greco, chief executive of Zurich Global Life Insurance. He says the company is strong in management, back office and information technology. The expansion strategy will focus on improving product distribution through different channels and reaching new customers by having more agents. The operation in Hong Kong has relied on the company's own sales force of roughly 1,000 agents plus distribution via partner financial institutions. Starting early this year, the company also plans to introduce an entrepreneurial, or franchise, model. This will allow individuals greater autonomy to manage their own business and build a team, while retaining access to the training courses, back-office support and full range of insurance products. 'With these three distribution systems, it gives us the opportunity to expand,' says Philip Smith, formerly in charge of Zurich's operations in Hong Kong and now the company's chief executive for Indonesia, Malaysia and Singapore. 'Our agents in Hong Kong are more productive than the average, but we need to get bigger and to think of having as many as 3,000 in the future.' He notes that the entrepreneur model demands a certain kind of person. It will attract those with the ambition and ability to run every aspect of a small business, clearly presenting a different set of challenges from being a pure sales person. 'The idea is generating a lot of interest,' Smith says. 'But it is not a simple decision for people; we need to have a lot of confidence in their ability.' This offers a new avenue for career development, especially for experienced agency managers, while still providing stability and guidance. Those considering a move will have to weigh up the earning potential, which will still be based on commission from sales, and the level of independence and responsibility they want. Smith emphasises there will be continuing recruitment for positions in the agency sales channel and the existing management structure. He points out, though, that experienced staff and applicants looking to break into the insurance sector have to be nimble enough to deal with shifting requirements. 'Changes are coming thicker and faster,' he says. 'The business probably demands a different mix between thinkers, leaders and doers than three to five years ago. And the competition for good people and customers is intense.' He notes the change in approach, away from the 'traditional' methods of selling insurance towards the role of fully-fledged financial planner. This is something the regulators are encouraging with a greater focus on proper sales processes. It is creating a new environment which requires thorough fact-finding, full understanding of a client's needs and justification of any sale. A good training programme is vital, as are the company's brand, culture and speed of reaction to changing conditions. Last year, Hong Kong saw a major shift as policyholders shied away from unit-linked life products. With confidence in the equity market ebbing, they went for non-linked products where insurer and customer shared the risks and rewards. Though the pattern is now reversing, it serves as a lesson in interpreting market conditions and adjusting sales tactics accordingly. 'The vast majority of what we sell is bundled savings products that give enough money to pay for protection when something happens,' Smith says. 'But products will become more sophisticated again.' On developments on the mainland, Greco says that Zurich's investment in a 20 per cent stake of Beijing-based insurer New China Life is paying off. It gave access to a distribution network of about 150,000 agents and was an effective way of establishing a market presence. Changing face Plans for a franchise model that allows insurance agents to build a business Longer-term target to expand from 1,000 to 3,000 agents locally Business development requires the right mix of thinkers, leaders and doers Moving away from a sales approach towards broader financial planning