1. Life Insurance in H.K.

2. History of insurance ~ Protecting against risk Cases:
~ Over 5000 years ago, in China (measures against piracy)
~ 4,500 years ago, in Rome (burial club)
=> First record of life insurance

3. What life insurance is?
~ make sure someone they love who are financially taken care of
~ Life insurance is not gambling even though it has the similarities of probability and odds
~ Life insurance is different from the other types of insurance

4. Background of AIA ~ AIA established since 1931
~ one of the largest life insurers in Southeast Asia
~ offers a comprehensive product line, e.g. life and medical , accident
and health insurance
~ wholly-owned subsidiary of American International Group, Inc. (AIG),

5. AIA corporate vision Service objective of AIA
“AIA – Your 1st Choice in LIFE, The Insurance Company distinguished
by leadership in Care, Trust and Professionalism.”
Service objective of AIA
"Customer Comes First"

6. Statistic of individual life insurance policy in Hong Kong from 2001 to 2005

7. Statistic of Long-Term Insurance business of AIA

8. Type of life assurance Term Life does not provide dividends
pays a lump sum only upon the policyholder's death
does not provide dividends
connect with a mortgage,
but protection benefits ↓ amount of the loan ↓

9. Whole Life
provide a cash value for the policyholder during his lifetime
provide a lump sum plus dividends to the policyholder's beneficiary upon his death
Endowment
pays out a lump sum upon reaching an agreed date
pays a death benefit before the agreed date is reached
savings and protection function

10. A Choice of Savings Type
part of the premium is used for investment purposes fall into two groups
offering guaranteed returns
offering returns which directly reflect the performance of the stock market

11. Dread Disease
offer a lump sum in the event that person insured contracts a critical illness
also provide benefits in the event of death
(providing a payment in lieu of a critical illness for which a policyholder has not previously claimed )

12. Income Replacement Plans
offer a percentage amount of the insured's salary to replace his income
( ill and cannot work for a prolonged period of time )
hospital income plans (a fixed cash sum for each day spent in hospital )

13. Disablement Policies
offer a lump sum in the event that the insured is permanently disabled due to an accident

14. Products of AIA Whole life insurance non-guaranteed annual dividends.
Death Benefit
a medical check-up every 2 years
If : totally and permanently disabled

15. Investment linked death benefits flexible investment savings scheme
Policy fee refund
A comprehensive range of fund

16. Universal Life death benefit
Guaranteed minimum interest-crediting rate
higher savings and greater flexibility

17. Term life Death benefits unchanged premium with each 20 year period
emergency cash
no saving elements

18. Compare between term insurance

19. Compare between term insurance
AIA
Premiums are guaranteed to remain unchanged within each 20-year period
Unemployment Benefit
grace period to 365 days
Terminal Illness Advance Payment Benefit
Manulife
Premiums are guaranteed to remain unchanged within each 10-years period
No unemployment benefit
No grace period
No terminal illness advance payment benefit
Won’t increase premium for changing occupation
Convert to any term policy

20. Compare between universal insurance

21. Compare between universal insurance
AIA
Lifetime protection
Flexible premium payments
death benefit
increase or decrease coverage
Guaranteed minimum interest-crediting rate
guaranteed issue
guarantee the rate would never be negative
Manulife
Lifetime protection
Flexible premium payments
death benefit
increase or decrease coverage
Guaranteed minimum interest-crediting rate
No guaranteed issue
No guarantee the rate would never be negative

22. Compare between whole life insurance
AIA
Can withdraw cash anytime
Guarantee Minimum interest crediting rate
After the plan matured life- long income
More than 70 portfolio can be choose
Freedom to choose the amount of premium and duration
Manulife
Can withdraw cash anytime
Not Guarantee
After the plan matured life long income
More than 40 portfolio can be choose
Freedom to choose the amount of premium and duration

23. Compare between whole life insurance

24. Compare between whole life insurance
Manulife
Guaranteed cash value or non- guaranteed dividend accumulation
No medical check up except WEALTH MAX plan
Death Benefit
the Insured becomes totally and permanently disabled before the age of 60 during the premium payment period, premium will be waived#
AIA
Guaranteed cash value or non- guaranteed dividend accumulation
medical check-up#2 every 2 years
Death Benefit
the Insured becomes totally and permanently disabled before the age of 60 during the premium payment period, premium will be waived#3

25. Compare between whole life insurance
AIA
A full range of optional riders on accident, medical, critical illness and disability
grace period to 365 days
Unemployment Benefit
Manulife
Addition payment for supplementary benefits
2 years grace period
Unemployment Benefit

26. Trend/development of life insurance in HK
Life insurance in Hong Kong
Trend : Individual Life business most dominant line of insurance business
Analyze by different methods

27. Number of policies(保單數目 )
Measurement : whole life + term life + endowment(saving) + others
2004 : $ 6,049,940
2005 : $ 6,587,525
Increased 8.8 %
Predict : increase about 9 % in 2006

28. Office Premiums(保單保費 )
Measurement : whole life + term life + endowment(saving) + others
2004 : $ 82,227.4
2005 : $ 98,181.2
Increased by 19.4 %
Trend : increase about 20% in 2006

29. Sum assured(保額)
Measurement : whole life + term life + endowment(saving) + others
2004 : $ 2,007,051.3
2005 : $ 2,118,108.2
Increased by 5.5 %
Trend : increase about 6 % in 2006

30. Number of insurance agents
2002 : 41,910 peoples
2003 : 43,503 peoples
2004 : 43,690 peoples
2005 : 46,060 peoples
Steadily increase
Increase in 2006

31. Conclusion
What life insurance is and the background of our target company – AIA.
Type of life assurance
- term life
- whole life
- endowment

32. Type of product in AIA
- Saving Insurances
- Investment linked
- Universal life
- Term life

33. Compare Between American International Assurance (AIA)
- term life insurance
- universal life insurance
- whole life insurance

34. Trend of buying insurance in Hong Kong
- number of policies
- office premiums
- sum assured
- number of insurance agents