To launch universal life and new investment-linked products, together with life and critical illness products for new distribution channel
Zurich Insurance (Hong Kong) ("Zurich Hong Kong") has been providing professional and comprehensive wealth management and protection solutions through innovative products and digitalized services since announcing the launch of its new life insurance company in 2021. Zurich Hong Kong has adapted to changing market needs by launching new term life and investment-linked assurance scheme (ILAS) products, as well as critical illness products. Despite the impact from the pandemic in the past two years, Zurich Hong Kong has achieved significant growth in its life insurance business, recording a year-on-year 68% growth in annual premium equivalent (APE) in 2022 – equivalent to a fivefold increase after obtaining the new license for carrying out life insurance business. Its new business value (NBV) has also witnessed a tenfold increase in the same period.
On the back of new regulatory guidelines, ILAS products remain an important part of wealth management portfolio to help beat inflation and accumulate wealth, and Zurich Hong Kong has recorded continuous growth in ILAS sales – with more than 20% ILAS market share in the independent financial advisers (IFA) distribution channel1.
Given consumers’ responsible investment preferences, Zurich is committed towards making one of the largest number of ESG investment options accessible to the Hong Kong market through its ILAS products, in line with its sustainable development philosophy and corporate vision to ‘create a brighter future together.
To better seize market opportunities such as the reopening of mainland borders, Zurich Hong Kong is launching a universal life insurance plan in Q1, its first Class A savings product in ten years. The plan features flexible contributions, monthly crediting interest (if any), loyalty bonuses (if any), and wealth inheritance options. In Q2-Q3, Zurich Hong Kong will launch a Protection Linked Plan (PLP), enriching the existing ILAS product portfolio and meeting customers' investment and protection needs with relatively higher death benefit. Zurich Hong Kong is also working towards critical illness products for its direct and intermediary channels for launch tentatively in the second half of 2023, in line with a new marketing strategy.
To better serve the growing demand for online insurance services, Zurich Hong Kong is expanding its distribution channels to explore the potential of online and direct channels. Zurich is planning to launch a new online self-service platform in Q1, which will offer simple life products to meet millennials’ and the public’s preferences for convenience and on-demand services.
Geoffrey Au, CEO of Life Insurance, Zurich Hong Kong, said, “The pandemic has made us more conscious about health, whether this is our own or our family members’. Amid inflation and rising medical costs, there’s an increasing demand for health protection in recent years as well. We are evolving our distribution strategies and updating our product portfolio regularly to address the market’s changing needs for easy access to suitable protection. Additionally, as the border reopens, the pent-up demand from MCVs will support the industry’s growth as Hong Kong’s financial products remain attractive and relevant to the mainland market. We are well-positioned to take advantage of the opportunities from the GBA market, and will launch a VIP center in Q3 to welcome visitors and their advisors, and expect a further boost in our business growth.”
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1Statistics of 2022 Q1 to Q3.
