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

2. 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

3. 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

4. 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)

5. 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%

6. 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)…………

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

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

9. 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