SAVINGS INSURANCE POLICIES BECOME A TOUGHER SELL IN HONG KONG

Life assurers in Hong Kong have been finding it harder to sell savings-type insurance policies in Hong Kong in recent months, after the end of a bull run in stocks that has lasted several years, reports South China Morning Post . Agents are said to be finding it less easy to sell investment-linked products where returns are not guaranteed. In recent years investment-linked insurance policies accounted for about 40% of all insurance sales, the report claimed. Hong Kong Federation of Insurers chairman Michael Huddart said that “for policyholders who do not want to take any risk at all, they could opt for the policies where all their benefits are guaranteed and the premiums from these policies are invested mainly in fixed income”. MassMutual Asia chief executive Kenneth Yu admitted that “the volatile stock market is likely to force policyholders to be more cautious, choosing more conservative investment funds such as the bond funds or guarantee funds”. AXA China Region Hong Kong head John Cai said that his company was planning a new product that combined investment with guaranteed returns.