Year 2007 - Critical Success Factors

funds. Investment-linked insurance products are becoming more and more common in the market. However, the financial implications of the complicated pricing structure of this type of insurance products are not readily comprehensible to ordinary consumers, in particular, the substantial loss upon early surrender. Hence, insurance intermediaries should explain clearly to consumers and raise their awareness of the consequent effects of early surrender. In this Information Age, customer database is undoubtedly a powerful marketing tool. However, this is a double-edged sword. Information helps development of service to meet consumer demands. But, it may also lead to bad concussion in the event of data leak. To gain customer confidence, insurance intermediaries must respect the data privacy of customers and maintain good data protection policy. China is experiencing phenomenal economic growth, presenting enormous business opportunities for different sectors. The insurance industry is one sector with exceptional potential for growth in the China market. Notwithstanding the impressive growth in recent years, China’s insurance penetration rate still remains low by international standards. With increasing affluence and increased risk awareness of the community, it is certain that the insurance industry in the Mainland will grow at a spectacular rate. CEPA strengthens Hong Kong’s position as Asia’s business centre by offering preferential access to China’s markets, over and above commitments made by China under WTO. The services liberalization measures in 28 services areas, including the insurance industry, under Supplement IV to the CEPA, have come into force on 1 January 2008. It gives Hong Kong insurance intermediaries better employment and business opportunities on the Mainland by facilitating mutual recognition of certain professional qualifications. CEPA offers unprecedented business opportunities to Hong Kong’s insurance intermediaries by providing a first-mover advantage.With decades of experience in the industry, extensive professional knowledge, wide international exposure and unparalleled knowledge about the Mainland, insurance professionals in Hong Kong are well equipped to explore and develop the potential of this fast-expanding Mainland market. CEPA is a mutually beneficial arrangement signifying a new phase of economic cooperation between the Mainland and Hong Kong. These emerging opportunities not only allow Hong Kong’s insurance intermediaries to expand their business but will also facilitate the transfer of professional knowledge and code of corporate social responsibility to Mainland counterparts. With all these promising prospects, I am confident that the service of insurance intermediaries will continue to grow from strength to strength, benefitting both the insured and the insurers. Connie LAU Chief Executive Consumer Council Ms. Connie LAU is the Chief Executive of Consumer Council. As the CEO of the Consumer Council, she is responsible for overseeing the operation of the Council, formulating strategies and long-term programmes for the protection of consumer interest. Ms. LAU is active in public service currently representing the Council on many public and community bodies, including the Advisory Committee on Travel Agents, the Travel Industry Compensation Fund Management Board, the Competition Policy Advisory Group, Costs Committee of the Department of Justice and the Estate Agents Authority. She also serves as Member of the Expert Committee on Food Safety of the Centre for Food Safety, Deposit-taking Companies Advisory Committee of the Hong Kong Monetary Authority, the Anti-spamming Task Force of Commerce & Economic Development Bureau and theWorking Group to Review Consumer Protection Related Legislation. March 2008 17 HONG KONG CHAMBER OF INSURANCE INTERMEDIARIES 2007 YEARBOOK 香港保險中介人商會二○○七年年刊