Members Report: Nova Insurance Consultants Ltd AAA Conference | 18 May 2018 Auckland, New Zealand Members Report: Nova Insurance Consultants Ltd

AAA Members Report – Hong Kong Country: Hong Kong Name of Member: Nova Insurance Consultants Ltd Membership details (update) - Annual Premium Turnover: USD101M - Number of Staff: 60 in Hong Kong; 50 in China - Location: Hong Kong with a branch in Macau Countries of Operation: Hong Kong, Macau, China

AAA Members Report – Hong Kong Professional Indemnity Details (update) - Limit of Indemnity: USD30M - Legislative Requirements: 2 times annual brokerage with maximum at HKD75M - Insurers: AIG Insurance Hong Kong Ltd; and Markel International Hong Kong Ltd

AAA Members Report – Hong Kong Who regulates Insurance Brokers in the country: (1) The Insurance Authority (from mid-2019) (2) The Hong Kong Confederation of Insurance Brokers (3) Professional Insurance Brokers Association What Insurance Broker and Agent Education Programs exists: Insurance Intermediaries Quality Assurance Scheme Continuing Professional Development (“CPD”) Programme How many Insurers operate in the country: 135 insurers in Hong Kong (as at 29 Mar, 2018)

AAA Members Report – Hong Kong Market Conditions - Number of Insurers decreasing, increasing, stable: Stable - Insurance capacity decreasing, increasing, stable: - Premiums decreasing, increasing, stable: Premium remains stable except construction EC (Employees Compensation) increasing - Commissions decreasing, increasing, stable: Stable - Average Broker income percentage earned as fees: Below 5%

AAA Members Report – Hong Kong Number of Brokers decreasing, increasing, stable: Stable Overall level of Insurance Business decreasing, increasing, stable: General insurance rather stable; life business increasing however rate is decreasing Percentage of business controlled direct by Brokers: Around 50% (no official statistics available) Percentage of business controlled direct by insurers: Around 10% (no official statistics available) Percentage of business controlled by other outlets: Around 40% (no official statistics available)…………

AAA Members Report – Hong Kong Information Technology used by Brokers (including Internet): Limited

AAA Members Report – Hong Kong Political issues at time of report: Stable Economy at time of report: Stable

AAA Members Report – Hong Kong Member’s view of Insurance Broking over the next three years: Stable Any major issues to be resolved: Shortage of talent High operating costs especially rent and salary Member’s principle activities over last year: Insurance broking Risk management Member’s planned activities over the coming year: Steady Expansion