To Be a smart insured customer, know more about the Insurance Industry.

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 !