Advantages and Disadvantages of Insurance Industry in Hong Kong

Is Hong Kong insurance worth buying for mainlanders?

Regarding insurance in Hong Kong, Ozawa has written a special article on a hot issue before.

Mainland customers go to Hong Kong to pull banners to protect their rights, and Hong Kong insurance is not as beautiful as expected.

It's about mainland customers pulling banners in Harbour City last year.

Interested parties can have a look.

The article only represents personal views,

In order to be objective and fair, i query wrote a lot of information.

1. Mainland customers are keen to buy Hong Kong insurance?

Ozawa checked the new total premium for mainland tourists to buy insurance in Hong Kong.

20 16, when this news appeared.

It reached a record high of HK$ 72.7 billion.

Ozawa checked the sales of 20 16 mainland insurance.

The life insurance business alone is 654.38+074.42 billion yuan, and the total property insurance is 3,095.9 billion yuan.

The premium of HK$ 72.7 billion, compared with the trillions of premiums in the Mainland,

Just a small part.

It shouldn't be passion, should it

Therefore, the rumor that mainlanders are keen to buy insurance in Hong Kong is not true.

2. Who buys insurance in Hong Kong?

According to some information consulted by Ozawa, there are mainly the following three types of people:

2. 1. People living and working in Guangdong with higher income;

Hong Kong is a China city that implements "one country, two systems" and is relatively more market-oriented. Compared with Chinese mainland, Hong Kong's financial industry started earlier and is more developed. Correspondingly, the insurance industry in Hong Kong has a longer history of development in China and a higher degree of marketization. Therefore, it provides more products, more standardized services and better customer experience, which also attracts high-net-worth people from Guangdong to buy insurance in Hong Kong to some extent.

2.2. Some high-net-worth people who have expanded from Guangdong to other developed areas in the Mainland.

With the rapid development of Chinese mainland's economy, many Hong Kong insurance companies have found that Chinese mainland's high-net-worth population is a huge gold mine, and started to look to some economically developed cities. Therefore, many Hong Kong brokerage companies and agencies will stay in major cities in Chinese mainland or recruit salesmen in Chinese mainland to attract high-net-worth people to buy insurance in Hong Kong.

2.3. Some people who follow the trend

This is also a large number. This kind of people reached their peak at 20 16. Through media hype, Chinese mainland people queue up to buy insurance in Hong Kong, so these people also think that insurance in Hong Kong is better than that in Chinese mainland. In fact, many of these followers don't know what insurance is for, let alone what insurance in Hong Kong is for. They blindly follow the trend, saying that "Hongkong insurance is cheaper than Chinese mainland", "RMB will depreciate" and "US dollar will appreciate".

Maybe you will say, then two of the three types of people you mentioned are high-income and high-net-worth people. They are more thoughtful and have a long-term vision, and they will also choose Hong Kong insurance to better represent Hong Kong.

Then have you ever wondered why the premium scale of mainland customers going to Hong Kong has been declining in the past two years?

In fact, many mainlanders who went to Hong Kong to buy insurance in the early days were not because insurance in Hong Kong was cheap, but because the functional design of early insurance products in Hong Kong was more perfect than that in the mainland at that time. Another reason is that the professional level of insurance agents in many mainland countries at that time was limited, and they could not diagnose the real insurance needs of high-net-worth people, which led these high-net-worth people to mistakenly think that only Hong Kong insurance had such products that met their needs.

With the improvement of the professional level of mainland agents and the continuous optimization of mainland insurance products in the past two years, the number of mainlanders going to Hong Kong to buy Hong Kong insurance is gradually decreasing.

3. There are many kinds of diseases covered by insurance in Hong Kong, and the premium is low?

3. 1 number of guaranteed diseases

When I talk to insurance salesmen in Hongkong, I will talk about the critical illness insurance in Chinese mainland.

There are very few kinds of diseases covered, generally 25 kinds, many of which are 40 or 50 kinds, far less than the 80 kinds or 100 kinds covered by Hong Kong's critical illness products, and the premium in Chinese mainland is quite expensive. Under the same protection conditions, Hong Kong's critical illness insurance products account for 60% to 70% of Chinese mainland's premium.

In fact, before the 20 13 mainland fee reform, it can be said that,

However, after the reform of 20 13 fee, the enthusiasm for insurance innovation in Chinese mainland is very high.

Take chestnut as an example, which is an insurance product in Chinese mainland.

The change of this insurance company's products also represents the ever-changing insurance products in Chinese mainland to some extent.

And many people's understanding of insurance products still stayed a few years ago.

Let's take a look at a Hong Kong-style critical illness insurance popular in Chinese mainland in recent years:

In terms of coverage, it is not better than the current insurance products in Chinese mainland, is it?

3.2 Premium level

30-year-old female, 654.38+ 10,000 insured amount, payment 654.38+00 years.

The evergreen tree (multi-edition) produced by Huaxia 20 18 pays 3656 yuan every year.

In terms of premium, it's not cheaper than mainland insurance products, is it?

Here I just give an example of an insurance company that has developed rapidly in the Mainland in recent years. There are also many insurance companies' critical illness insurance products, which protect more diseases and lower premiums.

3.3 Rate Guarantee Variance

I don't know if you've noticed,

The premium of long-term health insurance in Hong Kong is not guaranteed.

What is a rate guarantee? To put it simply, when you take out long-term critical illness insurance, the insurance company will tell you how much I charge every year at your age. After this amount is fixed, the insurance company cannot adjust it.

In other words, the insurance company can adjust the rate according to the situation, and the customer has no way to stop it. When signing the contract, the insured amount may be 3853 yuan to 10 year, but it may be adjusted to 5000 yuan per year in a few years.

Generally speaking, the actuarial annual rate of return will decrease by 1%, the premium will increase by 10-30%, the incidence will greatly increase, and the premium pricing will also increase. There are still many influencing factors.

At present, the long-term insurance in the mainland adopts the guarantee rate, which is based on the premium of signing the policy contract and will not change.

3.4 Differences in coverage

Many customers actually don't understand this.

Ozawa believes that this is the most important factor besides the amount of insurance.

After all, no matter how good the insurance is, it is empty without insurance.

Ozawa believes that in some respects, the protection of insurance in Hong Kong is stricter than that in the Mainland.

Like thyroid cancer.

Thyroid cancer with T 1N0M0 or below is not included in the critical illness part of Hong Kong's critical illness insurance, and some companies only deal with mild cases. This T 1N0M0 grade is a primary thyroid tumor.

Thyroid cancer is the disease with the highest claim rate in critical illness insurance in mainland China. To what extent, half of the serious illness claims are because of it. This kind of thyroid cancer is the least terrible of all serious diseases. Many people can find it as early as possible after physical examination, and the cure rate is high in early detection, and they can return to work soon after surgery.

For this kind of thyroid cancer, mainland insurance companies are also complaining. Previously, in order to reduce the risk, an insurance company pulled out thyroid cancer as a mild disease, and the result was criticized. Therefore, although insurance companies are very worried, thyroid cancer is still covered by critical illness insurance in the Mainland.

As mentioned above, if a single thyroid cancer is kicked out of the major illness team, the reinsurance company conservatively estimates that it can also reduce the critical illness insurance premium in the mainland 10 percentage point.

There is another one, cancer in situ.

Cancer in situ is an early cancer. Generally speaking, in the mainland, as long as there is serious illness insurance with mild illness protection, it will be written that "cancer in situ" can be guaranteed, and the words "cancer in situ" are clearly written in the terms. However, in the critical illness insurance in Hong Kong, the description of cancer in situ is listed, which is limited to cancer in situ in XX and is within the scope of protection. You can see the difference here.

In addition, some mild diseases are actually high in children, and only 18 years old is guaranteed; Severe mental illness only protects Hong Kong residents; Alzheimer's disease and Parkinson's disease are only 60 years old; Loss of independent living ability, total disability and permanent disability are only guaranteed until the age of 65, and so on.

The specific protection content requires everyone to read the insurance contract carefully.

Buying insurance is buying a contract.

-Ozawa

4. The laws and regulations applicable to insurance in Hong Kong are also different.

Insurance is a financial product that combines law and medicine.

It is essentially different from going to Hong Kong to buy a mobile phone and buy cosmetics.

Choosing Hong Kong insurance means signing a financial product contract in another legal environment.

4. 1 Different notification methods.

I believe everyone knows that there will be health notification when buying insurance.

Chinese mainland's insurance adopts limited notice, and you can answer whatever the insurance company asks you. You don't have to come back without asking, and it won't be used as a reason to refuse compensation in the future.

In Hong Kong, however, insurance is notified infinitely, and the inquiry method is open, such as:

This kind of inquiry means that all important facts that the insured knows or should know should be told to the insurance company.

In Chinese mainland, when a claim dispute arises due to failure to inform, the core issue is "whether failure to inform is enough to affect underwriting judgment".

In Hong Kong, on the premise of unlimited notice, asking for information means that everything is important, which means that any reason may be the reason for refusing compensation.

For example:

A mainland policyholder took out critical illness insurance in Hong Kong on 200 1, and applied for compensation after being diagnosed with lung cancer on 20 12. During the claim investigation, the insurance company found that the insured had intravenous injection cases at 1990- 1993, and did not inform the insurance company. Insurance companies believe that the above matters have a great impact on underwriting. In the end, he refused to pay compensation and refunded the insurance premium of HK$ 42,000.

Maybe many people think it's just a drip. Is it that serious?

In Hong Kong, it is not for you to judge whether there is any impact, but for the insurance company to judge.

4.2 Differences in Non-defense Clauses

Whether in Hong Kong or in the Mainland, there are unquestionable clauses in insurance. But the difference between them is great.

In the Mainland, the Insurance Law clearly stipulates that an insurance company may not terminate the contract two years after the policy takes effect; In Hong Kong, insurance companies can pursue the fraud or failure to tell the truth of the insured indefinitely, which may eventually lead customers to refuse to pay because they have not fulfilled their obligation to tell the truth.

How to define fraud?

Back to telling the truth.

As I said before, even if you don't tell the truth, it has nothing to do with the problem that eventually leads to your claim. In Hong Kong, insurance will be denied compensation.

4.3 Adapt to different laws in case of disputes.

In the event of a claim dispute in Hong Kong insurance, the policy shall be governed by the laws of Hong Kong and shall not be protected by the laws of the Mainland.

In case of disputes, mainland policyholders may apply to the Hong Kong Insurance Claims Complaints Bureau. If the coordination fails, they must find a lawyer in Hong Kong to file a lawsuit.

And how expensive is the lawyer's fee in Hong Kong? You can investigate in advance.

Even before the judge, the mainland courts generally adopted the principle of reasonable expectation, that is, when the insurance company's "professional understanding" of the insurance contract conflicts with the applicant's "reasonable expectation", the court should explain that there are carp policyholders and insured.

Insurance in Hong Kong, even in court, is judged in strict accordance with the terms of the contract and will not be interpreted in favor of the applicant and the insured.

Verb (abbreviation for verb) claims difference

Ozawa often said that buying insurance is not for buying, but for compensation in case.

So what's the difference between Hong Kong insurance and mainland insurance claims?

5. 1 claim limit

Ozawa contacted several cases and spent 3-6 months in Hong Kong before reaching a conclusion. However, domestic insurance clauses and insurance laws stipulate that insurance companies must make claims within 30 days.

From this perspective, the strong supervision of domestic laws makes insurance companies' compensation prescriptions more standardized and humanized.

5.2 Claim collection

In most cases, mainland insurance claims are paid directly to the beneficiary's bank card, and the currency is RMB.

Insurance claims in Hong Kong are basically in Hong Kong dollars or US dollars, many of which are in the form of checks, while few banks in China can directly exchange foreign currency checks.

Generally, Hong Kong dollars are sent by cheque, and there are two ways to exchange them: one is to open a Hong Kong account, deposit the cheque in this account, and swipe the card when needed in the Mainland; The other is to take a claim check to the mainland bank for collection. Although there are many restrictions at present, I believe it will be better in the future.

Another way is to go to Hong Kong to collect claims. Let alone the trouble of going to Hong Kong from the mainland. Even if foreign exchange is brought into the mainland, it is necessary to abide by the foreign exchange control in the mainland, which will increase a lot of troubles and even risks.

6. Insurance coverage in Hong Kong will increase.

You need to know two things about this.

On the one hand, many insurance companies in Hong Kong will increase their confirmed coverage in the first 10 year, which is called free 10 year critical illness coverage, accounting for about 30% of the purchase coverage, and will only increase in the first 10 year, and will decrease after 10 year.

On the other hand, it is an uncertain dividend.

Looking at the insurance policies in Hong Kong in detail, we can see that there is a guaranteed amount and a non-guaranteed final reward face value.

For example, a 26-year-old woman bought an insurance policy in Hong Kong and paid $644 a year for 20 years.

The insured amount is 30 thousand dollars. In the first 65,438+00 years, the guaranteed amount was increased by $65,438 +0.05 for free. At the age of 85, the non-guaranteed final return (that is, the dividend we say) can reach an astonishing $65,438 +0.5, which is five times the guaranteed amount.

There are two facts you must know. One is that the guarantee income of Hong Kong insurance is not high. Most of the guaranteed income of Hong Kong insurance sold in the Mainland is only 1%, while the insurance products in the Mainland are generally 2.5%-3.5%. Another non-guaranteed dividend is calculated according to compound interest, while the interest rate argument assumes that the future will remain unchanged, but it is also compound interest. Even if the interest rate only changes by 1%, the final income will vary greatly.

For example,

You can understand what is guaranteed and what is not?

I'm sure I'll give you the part of the promise. If I don't promise, I can draw you a pie. I can brag, but I don't bear legal responsibility anyway.

In the past, insurance companies in mainland China did the same (according to the highest level of income). Now the China Insurance Regulatory Commission has clearly defined the model interest rate, and insurance companies dare not draw cakes casually. (At present, most of them are based on middle-grade income.)

However, Ozawa still believes that guaranteed interest rate is the most important factor to determine the quality of a profitable insurance product. After all, insurance is the guarantee for the next few decades.

7. What are the advantages of Hong Kong insurance?

Of course, Hong Kong insurance still has many advantages over the mainland.

7. 1 The coverage requirement is higher than that in the Mainland.

For example, high insurance limit or exemption from medical examination. At present, among the vast majority of insurance products in the Mainland, adults in a single insurance company are required to undergo a medical examination if the critical illness insurance coverage exceeds 700,000 or 800,000, while in Hong Kong insurance, people aged 65,438+08 to 40 can be exempted from a medical examination if the insurance coverage is less than 450,000 US dollars. For some high-end people, the insurance coverage in the mainland is still generally low, and the demand can only be met by purchasing a number of insurance companies or receiving medical examinations from insurance companies.

7.2 The medical level in Hong Kong is higher.

Most insurance in Chinese mainland can only be hospitalized in hospitals in Chinese mainland, while insurance claims in Hongkong can be hospitalized in hospitals all over the world. For customers who need to go to Hong Kong for medical treatment, Hong Kong insurance is also a good choice.

7.3 The return on investment of insurance companies in Hong Kong is relatively high.

There is no guarantee of dividends here, and neither is there, but the income of insurance companies in Hong Kong will be better than that in the Mainland.

In other words, Hong Kong insurance companies are more reliable than mainland insurance companies for the same picture cake.

However, Ozawa has always said that it is certain to buy insurance, so he will not recommend insurance products with dividends.

7.4 Insurance in Hong Kong is equivalent to owning US dollar assets.

This is also very useful for many people with asset allocation, or overseas work and immigration needs. Of course, the reverse side of the coin is the exchange rate trend of the US dollar and the RMB, and Ozawa does not prejudge it here.

In addition to the above points, what else will be compensated for suicide after one year, and a few diseases will be slightly relaxed, so I won't do it here.

If you see this, I believe you have almost a comprehensive understanding of insurance in Hong Kong.

Ozawa just wants you to have a clear and comprehensive understanding of what you buy. You are definitely not following the trend.

The moon in Hong Kong is not rounder than the mainland, and so is insurance.

Finally, if you must buy insurance in Hong Kong, it is ok, but you must find a reliable channel to open an account and interview in Hong Kong, especially how to pay the renewal premium and how to change the policy information (such as beneficiary change, payment account change, etc.). ) and how to settle claims in the future.

Buying insurance is a lifelong guarantee, not just a contract.

I hope today's article is useful to you, and welcome to share it with friends and relatives in need.