to be a smart insured customer, know more about the insurance industry
TRANSCRIPT
To Be a smart insured customer,know more about the Insurance
Industry
Part I: Introduction of the insurance industry in
HK content
The regulations for Insurers and Insurance
intermediaries
Regulation of Insurers• Authorization • Maintenance of Assets in Hong Kong • Statutory Valuation Basis for Assets
and Liabilities • Reporting Requirements • Intervention • Other Regulatory and Self-Regulatory
Initiatives
Regulation of Insurance Intermediaries
• Regulation of Insurance Intermediaries• The System • Insurance Agents • Insurance Brokers • Intervention • Insurance Intermediaries Quality
Assurance Scheme • Other Regulatory and Self-Regulatory
Initiatives
Office of the Commissioner Of Insurance (OCI)
• establish on June in 1990• administration of the Insurance Companies
Ordinance (Cap.41) ("ICO").• The principal functions of the IA are to
ensure that the interests of policy holders or potential policy holders are protected and to promote the general stability of the insurance industry.
The HK Federation of Insurers (HKFI)
• established on 8 August 1988 • a self-regulatory body of insurers• to advance and promote the
development of the insurance business in Hong Kong.
The Insurance Claims Complaints Bureau (ICCB)
– February in 1990 establish– handling of insurance claims complaints ari
sing from all types of personal insurance policies taken out by residents in Hong Kong.
– financed by its members to provide this service free of charge to complainants
Development of the Insurance Industry in Hong
Kong
The Long Term Business• The premium income is nearly
$115,000 million (2005)• Annual growth rate is 16.6%• Insurance density per capita
expenditure is $16,545• The no. of Individual life insurance
record the highest increase with 8.9% growth
The General Business• The premium income is nearly
$23,000 million (2005)• Annual growth is -1.4%• The insurance density per capita
expenditure is $3,251• The gross premium of aircraft record
the highest increase with 53% growth
Individual life new business • Just 0.5% increase on the number of
policies (2005)
Market Analyze• 64 insurers authorized long term insurers
22
1418
30
5
10
15
20
25
Below $100million
Between $100million and $ 1
billion
Between $ 1billion and $ 10
billion
Above $10billiom
Office Premiums (Total In-Force Business)
Number of Insurers
AIA (Bermuda),17.2%
Remaining Insurers,27.4%
CMG Asia, 2.9%
Royal Skandia Life,2.9%
Winterthur Life,3.2%
China Life, 3.4%AXA China
(Bermuda), 5.9%Hang Seng Life,
4.2%Prudential (UK),
8.6%
HSBC Life, 11.9%
Manulife (Int'l),12.4%
Market Share
AIA• American International Assurance Company
(Bermuda) Limited (AIA)• operates in Hong Kong and Macau • Developing in Mainland China• has a strong and professional agency• offers a comprehensive product line• including individual life, group life, and medical,
credit life and accident & health insurance and a series of financial services.
Role play• Screening • Risk- based premium• Restrictive provisions
• Prevention of fraud
• Cancellation of insurance
• Limits on the amount of insurance
Case study A man applied a life insurance policy and the policy was in forced. But during his application, he didn’t mention he had Asthma and went to hospital for treatment.
One day, he died suddenly because of another health problem…
AT LAST….?
Tips to be a smart insured• Pay attention at each term • Provide accurate information• Limit on benefit• Buy enough insurance items and
amounts• Find your consultant to review the policy
regularly• Make sure there is enough coverage
when traveling
Thank you !