What is HK's economic status in the international arena?
According to the ranking of the "Global Financial Index", Hong Kong, London and New York have become the world's three major financial centers, with no foreign exchange control, free trade, the law of the sea system, abundant capital, and backed by the stable economic environment of the mainland, its status as an international financial center is unshakable.
In June, the Boston Consulting Group (BCG) released its Global Wealth Report, which said that Hong Kong will surpass Switzerland as the world's largest offshore financial center by 2027. $3 trillion in offshore assets under management.
Characteristics of the HK financial market
High degree of self-control The independence of the judiciary is based on the law of the sea, case law is based on precedents, and judges have less discretionary power.
There is no foreign exchange control, free foreign trade, free entry and exit of funds, and the investment of financial institutions can cover the whole world.
The Hong Kong Insurance Authority, the strict regulatory regulator of insurance, protects the Insurance Companies Ordinance by law.
HK Insurance Regulation
In 2017, the Hong Kong Insurance Authority (IA) replaced the original IA with the existing IA to perform licensing, daily monitoring and punishment of non-compliance in accordance with the international practice that financial regulators should be financially and operationally independent of the Government.
The Insurance Ordinance (IO) is the legal foundation of the insurance industry in Hong Kong.
Insurance companies operate insurance business with the highest integrity, and the policies issued are transparent and fair, so as to minimize misunderstandings and disagreements with customers. Differences between the customer and the insurance company are usually coordinated by the Complaints and Claims Bureau in accordance with the principle of "fair and reasonable negotiation without rigid provisions", so as to protect the interests of the policyholder as much as possible and avoid litigation.
HK Insurer's security mechanism
Legitimacy is guaranteed by law
According to the Insurance Law Ordinance, Cap. 41, it is lawful for any insurance company authorized in Hong Kong to promote life insurance in Hong Kong, regardless of whether it is a local, foreign or domestic person.
The place where the policy is signed is a legal policy in Hong Kong, otherwise it is an illegal policy. Chinese mainland residents who apply for insurance in Hong Kong are required to provide proof of arrival for registration, and special personnel will verify to ensure that the insurance application is carried out in Hong Kong.
The Personal Information Ordinance (IOO) in Hong Kong law requires insurance companies to maintain absolute confidentiality of all information and information of policyholders.
Insurance company background, the insurance industry is fully competitive
As a global financial center, Hong Kong is home to a number of multinational insurance groups, most of which have a history of more than 100 years, covering the world and assets under management exceeding one trillion yuan.
Even after World War I, World War II and several financial crises, it still operates stably, stands tall, and continues to provide services and guarantees for holders.
Hong Kong has 164 insurance companies, and the insurance market is extremely dense, fully competitive, seizing the market, and policyholders are the ultimate beneficiaries.
Classification of HK insurance
Features of HK Insurance
USD/multi-currency denomination
Most products are denominated in USD/HKD, and endowment life insurance can be denominated in multiple currencies. Provide guests with more flexibility of choice.
With the intensification of RMB depreciation, more and more customers are seeking foreign currency-denominated assets to avoid the risk of single currency depreciation, and the US dollar, which has the attributes of an international currency, is favored.
An HK policy has the attributes of an offshore financial asset
By allocating offshore assets, the assets have better security, privacy, tax planning and other advantages.
Offshore assets generally refer to assets held by investors in countries or regions other than their country of legal residence. The biggest feature of offshore assets,
That is, it is not subject to the financial supervision of the country where the asset owner is located, and the assets are safe and independent.
On the one hand, assets are not subject to foreign exchange management restrictions, and the allocation of funds is more free; on the other hand, offshore assets are not affected when macroeconomic policies, laws and regulations may bring about tremendous changes in the financial market, regardless of the political or economic instability of the country where the asset owner is located.
Second, offshore assets are more privacy-friendly and secure for all.
Finally, offshore assets are often allocated in countries and regions with relatively low tax rates, such as the Cayman Islands, Bermuda, Hong Kong, etc., so offshore assets can also enjoy greater tax advantages.
Features of HK Insurance
The yield of high-dividend/high-expected income savings participating insurance is expected to reach the level of about 7%, and the insurance company pays more dividends. However, the guarantee part is low, and there is no cash value for the general delivery product within 2 years.
Global investment + overweight equity market
The insurance company invests globally, avoids systemic risks in a single region, pursues the optimal allocation of funds in the global region, and has excellent historical investment performance with the support of the investment team's investment strength.
Insurance companies have fewer restrictions on investment targets, and can allocate a high proportion of global growth assets to achieve higher expected returns.
According to the Insurance Ordinance GN16 of Hong Kong, all life insurance policies with dividends must publish the fulfillment ratio on the official website. The new regulations and the pre-revision requirements require that at least 5 years of fulfillment rate data be published from 2010, and in order to close the loopholes and protect the long-term interests of holders, the latest regulations need to be published for at least 30 years (effective January 2024)
Unlimited change of insured, no insurable interest is required for the replacement of insured, and the beneficiary is not an immediate family member
Critical illness insurance: The compensation amount resists inflation, and the sum insured + dividends are given in the first 10 years, and multiple claims are paid for high-incidence and easily recurring diseases (cancer, cardiovascular and cerebrovascular diseases).
1. Mild illness accounts for the sum insured of the main insurance
2. No exemption for minor illness
3. Support insurance for unborn fetuses
4. The amount of insurance for free physical examination is high
5. The rate is relatively low
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