Year 2009-2010 - Sunny Path of Tomorrow’s Insurance Intermediaries

Feature 專 題 探 討 working diligently and happily to welcome the return of Hong Kong to China. Despite competition, the business climate was favourable. The clouds in the eighties dispersed. For the large part of the nineties, it was sunny. Life insurance continued to be fabulous. Banking on the idea of getting a slice of the colossal China market, multinational companies laid corner stones in Hong Kong. Their strategies aimed at market share. They poached agents of other companies. If agents swapped companies, they would get handsome shake-hand fees. Every agent, old or new, had a price tag on the head. Once they went on board a new ship, their income would be guaranteed for at least one and half times their previous ones. Where on earth had Life agents such opportunities? The days were more than sunny. They were golden. The 21st century The new century started with clouds in the horizon. The economic downturn occurring in October 1997 took the toll. All the factories had to move to China for survival. The commercial and industrial risks almost perished. The situation worsened in 2002 and 2003 when the epidemic of H5N1 and SARS broke out. All kinds of business except hospital and dispensary were bad and the economy remained weak until the middle of the first decade. Life was difficult for everybody, Life boys no exception. Hong Kong recovered soon after the epidemics. The rapid economic growth in China provided opportunities for cross-border trade. Many gigantic state-owned enterprises, banks, insurance companies, etc. sought IPO in Hong Kong. This heated up the economy. The Hang Seng Index soared from the 8,000 points in 2003 to over 20,000 by the end of 2006 and 30,000 by December 2007. Everyone joined the gold rush in the stock and property market. Selling insurance? Who cares? Suddenly, the financial tsunami rolled over the whole world in October 2008. Then… The year of 2010 opened with the sun coming out from the clouds. Is it sunny weather ahead? My answer is positive. What then paves the sunny path? • The world economy is rebounding. China’s fast recovery will facilitate more trade between Hong Kong and cities in the Mainland as well as other trading partners in the world. • Hong Kong is enlarging its infrastructure, thus providing more employment and opportunities for commercial and retail business including tourism. • The General insurance market though looks saturated as the industrial risks might not return, Accident and Health business will thrive in anticipation of the “privatisation of health care”. Travel insurance will be sold like hot cakes. Yearbook 2009 年刊 & Prospect 2010 展望 12