Insurance companies in Hong Kong are depending on online sales and are planning to roll out medical and retirement products to ramp up sales, media reports said. It is reported that the sector is trying to avoid its worst slump on record.
Eric Hui Kam-kwai, chairman of the Hong Kong Federation of Insurers (HKFI), told the media, “The full-year sales are not looking good. Cross-border traffic has not picked up. The government has tightened social distancing since July due to the third wave of infection. This has stopped the 100,000 salespeople from meeting clients to sell the policies in person.”
It is reported that consumers in mainland China spent only $108 million in the second quarter on insurance policies in Hong Kong. The spending dropped 76 percent in the first quarter. The stumble in Hong Kong’s insurance sales is triggered due to the outbreak of the Covid-19 pandemic.
Moreover, fresh sales of insurance slumped 34 percent in the first quarter compared to a year earlier. It is expected that if the current trend continues then Hong Kong insurers might see their worst sales record since 2008.
HKFI launched a virtual platform to assist insurance companies in developing online sales channels to tackle the challenges. Companies such as HSBC Life, AIA and BOC have recorded more sales online this year.
HSBC Life’s digital sales surged 5 percent year on year in the first half of 2020, while the sales of Bank of China jumped twice in the first quarter compared to last year.
All these insurance companies have launched online services such as video conference services and much more.