1. ECON 310 Financial Institutions in Hong Kong
Section 1
Topic: Hong Kong Insurance Industry ---case study of Prudential plc

2. Group 3 Member list Lee Ka Yan, Jennifer (033174)
Yuen Lai Ying, Rain (033179)
Wong Yu Hong, Claudio (033190)

3. Agenda Introduction to HK insurance industry
Recent development of HK insurance industry
Trend of insurance industry
Case study---Introduction to prudential plc
---Analysis market follower
 products
Conclusion

4. Hong Kong Insurance industry ---Two major classes
For general business--- general liability, property damage, accident and health and motor vehicle business are the major lines of business in terms of gross premiums.
For long term business---individual life business is the most important line in terms of office premiums for 2004, Retirement scheme management. Remaining are Group life and Annuities and others.

5. Recent development of HK Insurance Industry
General Insurance business (take Growth of gross premiums as an indicator for development)
---from1999 to 2001 increased gradually (HK economy started to recover)
---in 2002increased sharply (HK economy was recovering)
----in 2003decreased dramatically (SARS reduced personal consumption)
---first three quarters of 2004 negative growth (-3.3%)
Effect of SARS persisted in 2005increased slowly <+4.6%> (HK economy started to recover)

7. Recent development of HK Insurance Industry
Long-term Insurance businesses (take Office Premiums as an indicator for development)
---from 1999 to 2001gradually increased (HK economy started to recover)
---from 2002 to 2004 (+27.4%)increased sharply (since SARS, more people bought individual life insurance)
---in 2005(+15.4%) degree of increase is smaller than

10. Trend multi-channel distribution for insurance products (bank)
Internet insurance
CEPA
foreign insurers and reinsures

11. Introduction of Prudential
established in London in 1848
The world's 5th largest life and health insurer (stock) in terms of revenues
(source: Fortune Magazine, 25 July 2005)
Standard & Poor's (AA+)
Moody's (Aa1 )

12. Introduction of Prudential
providing insurance services to the people of Hong Kong since 1964
over 3,600 insurance consultants, Financial Planning Managers and staff

13. The Mission
always listening always understanding

15. Market follower

16. The Prudential product
1.Tradition Life products
2.Investment linked products
3.Supplementary benefits
4.General insurance
5.Employee benefits

17. Tradition life products
1.100% Refundable Crisis Cover Plan
Aged 16-60
Covered major diseases
2.Best Start Plan
Children significant saving

18. Investment linked products
Provide life protection
Full control of investing
No upfront charge

19. Supplementary benefits
Long term care benefit
Regular monthly benefit
Lessen financial burden
Investment Plus,Term Series,Crisis cover Series
Juvenile PRUaccident care, Payor Benefits Series, Disability Series, Accident Series, PRUmed care plan, PRUmed hospital care plan, Lady Prudence Plan, etc.

20. General insurance
mainly protect clients for the activities on travel, personal accident, clinic, home, maid, medical, golfers.
jointly produced with The Ming An Insurance Co. (H.K.) Ltd.
aims : those traveling to mainland China for business or leisure frequently.

21. General insurance
Emergency hotline service
Medical assurance service

22. Employee benefits MPF Scheme 1.BOCI prudential Asset Management Ltd
Well-defined discipline
a transparent and prudent investment process, and proper risk control
2.BOCI-Prudential Trustee Limited

23. Internet insurance services on Prudential
e+Policy
manage their policies with great ease, anytime anywhere.

24. e+purchase
customers can make insurance claims just online

25. All online transactions are safe and secure.

26. Conclusion Growing state multi-channel distribution
Asia, in particular China, continues to be viewed by global insurers and reinsurers as the region of opportunities:
offers products for people who always travel from Hong Kong to China

27. Exercise for the Prudential Inc.
If you can answer it,
Please raise up your hand.
Thank you!

28. Q1 Which of the following (s) is NOT the trend of the insurance industry in Hong Kong (a) internet service (b) multi-distribution channel (c) increase number of foreign insurers and reinsurers (d) only (a) & (b) (e) none of the above

29. Q2 Which of the following (s) about mission of in Prudential is/are true? (a) always looking forward (b) always listening always understanding (c) always speaking (d) all of the above

30. Q3 What is/are NOT the categories of product (s) of Prudential plc (HK) ? (a) Traditional life products (b) Investment linked products (c) Supplementary benefits products (d) Super life products (e) Only (a) & (b)