1. Econ 310 Sec 2 Group 4 Financial Institutions in Hong Kong
Topic: Under the environment of the whole Hong Kong insurance industry, how Zurich can continue their business in Hong Kong?
Ko Kwan Lam, Coco
033012
Pan Yi Lam, Helen
033015
Leung Wing Hang, Erica
033017
Siu Kit Yuk, Karen
033038
Ng Man Sum, Sam
033047
Mak Ho Kong, Reef
033068

2. Agenda Introduction …….….……………………….Reef CEPA…………...……………………….….Reef
Opportunities………………………………..CoCo
Threats……………………………………..Helen
History of Zurich…………………………..…Sam
Strengths of Zurich ….Sam
Weakness of Zurich……………………….....Erica
Recommendation…..………………………..Karen
Conclusion………….……………………….Erica

3. Introduction
by Reef

4. Hong Kong Market
Asian insurance market: fully mature, transitional and incipient.
HK market: transitional the demand for insurance grows substantially faster than wealth.
by Reef

5. CEPA
by Reef

6. CEPA Closer Economic Partnership Arrangement
covers 273 types of product and 26 services including insurance.
by Reef

7. PRC Market situation and environment
Gross domestic product
Per Capita Disposable Income of Urban Residents
Premiums of domestic and foreign insurance companies.
by Reef

8. Gross domestic product
13,651.5 billion yuan, up by 9.5% over 2003 at comparable prices in 2004.
by Reef

9. Per Capita Disposable Income of Urban Residents
7902 yuan in first three quarters of 2005, there is an increase of 11.7 % compared with the same period of 2004
The expenditure for family equipment & services and medical care & health increased 9.4% and 15.3% respectively
Chance
by Reef

10. Premiums of domestic and foreign insurance companies
431.8 billion yuan in 2004, increased 11.3% from 2003
China is a big market!
by Reef

11. Recommendation Network for Hong Kong and China
Enter the market in Shenzhen, Guangdong first, and then step-by-step move the direction to the North, Coverage of Zurich can be expanded from South to North.
New strategy and plans in Zurich
share information and set up the strategy together for future planning between HK and China branches
by Reef

12. SWOT Analysis

13. Opportunities
by CoCo

14. Opportunities entering China market stability new product
reinsurance & captive insurance
I.T.
intermediaries
by CoCo

15. Threat
by Helen

16. Threat Difficult to open the market Competitors
Highly fragmented and over-competitive
Competitors
Mutual funds, commercial banks, and other financial institutions
by Helen

17. Threat Uncertain outlook Law regulation Business cycle
a negative growth of gross premiums in general insurance business
Law regulation
not enough to protect the insurers
Business cycle
affect the premiums
by Helen

18. History of Zurich
by Sam

19. Zurich Insurance Group (Hong Kong)
Member of Zurich Financial Service
130 years experience
Over 30million customers in the world
Presence in Hong Kong in 1961
Named ‘Eagle Star Insurance Group’
Merger with Zurich in 1998
Currently top 10 insurer in Hong Kong
by Sam

20. Strengths
by Sam

21. Strength of Zurich Great experiences Good rated
130 years
Good rated
rated “A+” by Standard & Poor’s
rated A2 from Moody’s
New products are provided periodically
Eg. Zurich Whole Life Hospital Cash Insurance Plan
by Sam

22. Strength of Zurich Professional staff Supporting in community
using Sales Automation and Management System (SAM) to train their staff
co-organized Executive MBA programme with the Lingnan University
Supporting in community
Can build up their brand name
Eg. Zurich Business Administration Paper 2004
by Sam

23. Weakness
by Erica

24. Weakness of Zurich
Financial strength not as high as the other competitors
No 24-hour telephone hotline to ALL of its customers.
by Erica

25. Weakness of Zurich Lack of experience compared to competitors
Lack of plans  less choice
For the General business market, the underwriting profit of Zurich decreased 62.88%
by Erica

26. Recommendation
by Karen

27. Recommendation Business cycle New plans for new market
Pets insurance
Short term plan
Internship program for university student
Training for staffs
Better after sale service
Education
by Karen

28. Conclusion
by Erica

29. Revision

30. Revision
In which year, Zurich started its business with the name of ‘Eagle Star Insurance Group’?
1961
1982
1998

31. Revision
2. What level of insurance market is Hong Kong in?
a. fully mature
b. transitional c. incipient

32. Revision 3. Does Zurich have a bright future? a. Yes, it does.
b. No, it does not.

33. End