Insurance connect on track for launch this year

The first phase of the long-awaited insurance connect scheme is expected to be launched this year, and the cross-border sales could be realized early next year, said Wilson Tang, chief executive of BOC Life Assurance Company.

Tang projects at the beginning stage, local insurers will be allowed to set up logistics centers in mainland cities in the Greater Bay Area, where customers could settle renewal premiums, apply insurance claims and enjoy other post-sales services. The second phase of insurance connect could enable cross-border sales of insurance products within the Greater Bay Area.

BOC Life is exploring healthcare investment opportunities in the Greater Bay Area for the first time, involving hospitals and elderly homes, he said. That came as local insurers saw business rebound despite the third wave of Covid-19 in the city.

Tang expects a V-shape recovery in third-quarter insurance sales after BOC Life saw a 37 percent year-on-year drop in second-quarter new office premiums to around HK$2 billion.

The insurer said its first-half new office premiums fell 25 percent year-on-year to HK$5.4 billion, as insurance sales to both local and mainland customers dropped amid the Covid-19 pandemic.

But the first-half new business value rose around 9 percent, and BOC Life's market share increased as the insurer improved product structure, Tang said.

He added the company is mainly focusing on the local consumer market. Sales to mainland customers only accounted for 5 percent of total new office premiums, down from 20 percent in the past. The pandemic's adverse impact on sales to mainland clients is likely to continue for the second half, Tang said.

Alfred Cheung, deputy chief executive and chief sales officer of BOC Life, expects the third-quarter new office premiums could reach more than HK$3 billion, returning to the first-quarter level. The company also increased its sales team to 900 from 700 last year, and it's aiming to expand to 1,000 this year.

Meanwhile, Priscilla Ng, chief customer and marketing officer of Prudential Hong Kong, expects third-quarter sales will improve as clients have gradually resumed in-person meetings with agents.

She said sales to mainland customers slumped significantly in the second quarter, but local demands remain resilient. Around 10 percent of insurance sales came from remote platforms amid the Covid-19 outbreak peak, but Ng projects online sales will fall as infection cases drop.