Year 2008 - Insurance Industry after current finanical tsunami

13 2008 YEARBOOK 二 〇 〇 八 年 年 刊 Factor in the big salaries and bonuses and the taxpayer-funded bailouts, and it is easy to see why people are angry. We may think that it is banking, rather than the insurance industry, that has to take much of the blame and which has a big image problem – and that is true. But we need to recognize that the insurance industry is going to be affected. In Hong Kong and internationally, politicians and the media will continue to demand greater transparency regarding financial products. Public confidence in the financial services industry has been damaged, and those of us in the insurance industry need to play a part in fixing that.We need to accept the fact that there will be pressure for better consumer protection, and that could mean such measures as cooling-off periods for clients to change their minds after signing up for a particular product. It could also mean making product information clearer. More than ever, insurance professionals will need to be extremely well informed about the products they are selling and about their clients’ own needs. And they will have to develop their skills in explaining things to their clients, and making absolutely sure that clients understand what the options are and what different products offer. This is not just about being open and honest, but about being able to ask the right questions and give full and clear answers. In order to win and keep clients’ trust, we must also be very clear in our own minds about the nature of risk. The explosion of toxic debt in the world’s financial system, and the subsequent collapse of most classes of investment, should send us all a big wake-up call. The world is full of uncertainties, and we face all sorts of risks – including some we do not even know about. This is a very strong reminder of the importance of insurance services, and we can see it as a selling point in favour of our industry’s products. But it is also a reminder of the way things can suddenly go wrong. Consider the case of someone who is approaching retirement and who has seen the value of his savings collapse in the last six months. Insurance professionals need to see risks their clients might not see. I believe our industry will come out of this with a far better record and reputation than some other parts of the financial services industry. But the economic downturn and the high-profile cases of bad financial management are affecting the whole community, and that includes our clients. Insurance professionals will need to play a part in part in restoring public confidence. I know that the HKCII will make a vital contribution to this process. Mr. Bernard Chan , GBS, JP. Honorary Advisor of HKCII Bernard Chan is a deputy to the National People’s Congress and a former member both of Hong Kong’s Executive and Legislative Councils. A graduate of Pomona College in California, he is the President of Asia Financial Group and Asia Insurance. He is Chairman of the Antiquities Advisory Board, the Advisory Committee on Revitalizing Historical Buildings and the Council for Sustainable Development. He is chairperson of the HK Council of Social Service, deputy chairman of the Oxfam Hong Kong council and chairman of Lingnan University council. He is also a chairman of the HK-Thailand Business Council and an advisor to Bangkok Bank, Hong Kong branch.