financial institution in hong kong topic: future development of insurance industry in hong kong...
Post on 24-Dec-2015
219 Views
Preview:
TRANSCRIPT
Financial Institution in Hong Kong
Topic:
Future Development Of Insurance Industry In Hong
Kong(Entering the China’s Insurance
Service Market Sharing)
Group 2
039003 Zenki Yu039007 Jackie Li039011 Oliver Choi039013 Carmen Law039014 Sarah Fu
1. Abstraction the future development of the whole insura
nce industry in Hong Kong the future development of the particular ins
urance companies. Manulife Company as an example have a comprehensive understanding for th
e insurance industry.
2. Introduction of Insurance Industry
The Conditions of Existing Insurance Industry
Prevent Suffer Loss
Diversification of Risk
2. Introduction of Insurance Industry
Transaction Cost (Asymmetric Information)
Adverse Selection Moral Hazard Specific Hold-ups
Takes place after the transaction Happens between clients and
insurance companies / agents or brokers and insurance companies
3. Composition of insurance industry in Hong Kong
A. The size of insurance business in Hong Kong
2002 HK$m
2003HK$m
2004HK$m
General Business-Gross Premium
23,448
24,766 23,478
Long Term Business-Office Premium
65,517
77,225 98,414
Total 88,965
101,991
121,892
3. Composition of insurance industry in Hong Kong
Premium
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
year
HK
$mill
ion
0
1
2
3
4
5
6
7
8
9
10
Per ce
nt %
GeneralBusiness
Long termBusiness
% of GB and L-tB in GDP
3. Composition of insurance industry in Hong Kong
a. Insurer authorized in Hong Kong and they distributed by types of insurance business and countries of incorporation
26%
11%
63%
general business insurers
long term business insurers
composite insurers
3. Composition of insurance industry in Hong Kong
b. The major classes of insurance business and their respective market (For general business)
27%
24%19%
13%
17%general liability
property damage
accident and health
motor vehicle
other
3. Composition of insurance industry in Hong Kong
b. The major classes of insurance business and their respective market (For long-term business)
84%
13% 3%
indibidual life business
retirement schememanagementother
3. Composition of insurance industry in Hong Kong
individual life policies
0
1000000
2000000
3000000
4000000
5000000
6000000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
year
no.o
f ind
ivid
ual
0
10
20
30
40
50
60
70
80
90
100
perc
ent %
Individual life policies
% of individual life policies inHK population
3. Composition of insurance industry in Hong Kong
B. Manulife’s Financial Highlightsa. Total Assets Under Management:
0
10
20
30
40
50
60
70
80
90
HK$ billions
2000 2001 2002 2003 2004
year
Total Assets Under Management
TotalAssetsUnderManagement
3. Composition of insurance industry in Hong Kong
b. Total Premiums and Deposits
0
2
4
6
8
10
12
14
HK$ billions
2000 2001 2002 2003 2004
year
Total Premiums and Deposits
Total Premiumsand Deposits
3. Composition of insurance industry in Hong Kong
c. Benefits Paid
0
0.5
1
1.5
2
2.5
3
3.5
4
HK$ billions
2000 2001 2002 2003 2004
year
Benefits Paid
Benefits Paid
3. Composition of insurance industry in Hong Kong
d. Policy Dividends Paid
0
100
200
300
400
500
600
700
800
HK$ billion
2000 2001 2002 2003 2004
year
Policy Dibidends Paid
Policy Dibidends Paid
3. Composition of insurance industry in Hong Kong
e. Number of Individual Policies in Force
0
100
200
300
400
500
600
700
800
900
1000
No.
2000 2001 2002 2003 2004
year
Number of Individual Policies in Force
Number ofIndividualPolicies inForce
3. Composition of insurance industry in Hong Kong
f. Number of Agents
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
no. of agents
2000 2001 2002 2003 2004
year
Number of Agents
Number of Agents
4. Regulations of insurance industry
Financial Examination Onsite Inspection Market's Consolidation Actions of Insurance Authority (IA)
include: limitation of premium income, restrictions on investments, requirement for a special actuarial investigation
Self-Regulatory Initiatives
5. Operations of insurance organization
A. Data Collection and Statistical Estimation
measure the optimal premium and compensation
the Central Limit Theorem set how much is the premium opportunity cost for the policyholder
5. Operations of insurance organization
B. Contractual Consideration asymmetric information as well as une
xpected risks
fulfill the right and duty
risk being transferred, diversified or alleviated
6. Case Study of ManulifeA. Introduction of Manulife Company Manulife Life Insurance (Hong Kong) Limite
d "AA+ (Very Strong) by Standard & Poor's www.manulife.com.hk bancassurance alliance with CITIC Ka Wah
Bank "Guaranteed Retirement Income Plan"
6. Case Study of ManulifeB. Products of Manulife individual insurance, group life & hea
lth, wealth management, MPF & Occupational Retirement Schemes Ordinance (ORSO), general insurance, credit cards
Personal Life and Health Insurance
6. Case Study of ManulifeB. Products of Manulife life insurance is dividend into Whole Li
fe, Term, and Endowment
In the policy, there are many information, premium paying period, basic plan premium, interest, etc.
7.Future development
A. Hong Kong insurance industry Statistics also indicated strong signs
of recovery in the long term business market and general business market
According to latest figures: 178 authorized insurers 112 general business insurers 46 long term business insurers
7.Future development
A. Hong Kong insurance industry Hong Kong's insurance market has
a strong international presence. Over half of the authorized
insurers are incorporated outside Hong Kong in 25 different countries. (US companies taking the lead)
7.Future development
A. Hong Kong insurance industry China's accession to the World
Trade Organization opens up more opportunities for Hong Kong insurers.
China's total premium income grew to US$25 billion for 2001, an increase of 32 percent over 2000.
7.Future development
A. Hong Kong insurance industry After joining the WTO, China is
committed to further widening market access to foreign players, which enables Hong Kong a bigger role to play.
Hong Kong is well poised to develop into an important insurance center
7.Future development
B. ManulifeFuture development of Manulife Whisked off five industry awards this y
ear. Came top of its class in a newly introd
uced MPF Fund category.
7.Future development
B. ManulifeDeveloping the china market Continued to expand its operations in
China and Hong Kong with the start of operation in cities of Nanjing, Hangzhou and Zhongshan.
Official Life Insurance Partner of the 2008 Olympic Games in Beijing
7.Future development
B. ManulifeDeveloping a Retirement Plan Services
in Hong Kong By the year 2016, more than one-third
of Hong Kong’s population will be over fifty years old.
retirement planning should be more important
helping retiree to make a well management on saving
7.Future development
B. ManulifeDevelopment on their market share Manulife expects that there will have a w
ell development on market price of their shares.
market price reflect the value of its business and its future business prospects
represent an attractive investment
8. Conclusion
A. Hong Kong insurance industry Helping people to prevent suffer
loss and diversify their risk Facing the problems of adverse
selection, moral hazard and specific hold-ups
Reducing the risks by data collection, statistical estimation and contractual consideration
8. Conclusion
Five major classes of business Three kinds of long term business Self-Regulatory Initiatives Spreading its services in China with
benefiting China joined the World Trade Organization
Developing into an important insurance center
8. Conclusion
B. Manulife Operating its business in China like Na
njing, Hangzhou, Zhongshan and so on
Increasing the business of Retirement Plan Services because of serious aging problem in Hong Kong
Financial Institution in Hong Kong
Goal Insurance Service Center
top related