1. LIFE INSURANCE DISTRIBUTION in UKRAINE Pavol Norulák CEO, KD Life Ukraine UKRAINIAN INSURANCE FORUM Kyiv, June 4 th, 2009

2. Which distribution channels are the most effective in crisis conditions? & Building a successful sales network: Which factors should be taken into account?

3. NO DISTRIBUTION = NO BUSINESS

4. Existing distribution models CAPTIVE DISTR. Bank offices captive MLM captive Agency the same owner(s) INDEPENDENT Diversified distribution channels or No distribution at all

5. MLM Brokers: Agency in different way, future potential History and image of MLM in CEE Motivation “career” driven Commission income opportunity Organization and discipline Training and development People turnover, professional level Long term prospective (CE experience) Most effective – not manageable

6. Agency network: Hopes and Ukrainian reality History and image of Agent profession Motivation “job” driven Commission income pressure Organization and discipline Training and development People turnover, professional level Long term prospective (CE experience) Costly, lower efficiency – but manageable

7. Group insurance and related: Who needs current practice and why? Real needs vs. additional profits Taxation issues Insured person benefits Very effective (for some players) – competitive advantages hidden

8. Bank assurance: Captive players vs. real competitors Real needs vs. additional profits. “Competition” for individual clients in the banks (“Stand by” agents) Trade-offs and dumping (deposits) Long run, great risk – considerable know-how and resources needed.

9. So, what to do? Diversify, diversify, diversify! Support. Professionalize. Create and lose. Don’t buy (what you can’t own). Lobby

10. THANK YOU FOR YOUR ATTENTION! pavol.norulak@kd-life.com.ua