2016年CRI Mainlanders Flock to Buy HK Insurance Products

 

Hong Kong agents are banned from selling their products on the mainland, but mainland travelers can buy policies when they visit the city.

According to figures from Hong Kong's office of the Commissioner¹ of Insurance, mainland visitors bought insurance premiums² worth 2.7 billion U.S. dollars in the city in the first three quarters of last year, accounting³ for 22 percent of new office premiums in Hong Kong in that period.

That represents nearly a five-fold increase from 2011.

Hong Hao, from the local BOCOM International Holdings Company, believes the cheaper prices and higher returns of insurance products in Hong Kong play a key role in attracting mainland buyers.

"Insurance products sold in Hong Kong are, in general, cheaper than those sold in the mainland market. In some extreme cases, we've seen 50 percent discount between Hong Kong products and mainland products. For example, in the past 10 years, the average expected return for Hong Kong insurance products is five to nine percent. I think on the mainland it's probably less than five percent. So if you assume the currency exchange rate is stable, then the return of the Hong Kong insurance products here can be a lot more attractive."

Analysts⁵ say that insurance products provided in Hong Kong outstrip⁶ those offered on the mainland also in many other aspects, such as product innovation, scope of protection and the quality of service.

Among the attractions of local insurance policies is the wider variety of currency and investment choices as the city is able to offer products denominated in US or Hong Kong dollars, in addition to the Yuan. There is also a wide range of investment choices and terms available there.

On the mainland - insurance policies are denominated in yuan and are mainly invested in bank deposits or bonds.

However, analyst⁴ Hong Hao warns that for investors⁷ who want to hedge risks by diversifying⁸ investment tools, it is not devoid⁹ of danger, especially when it comes to currency fluctuations¹¹.

"In the past 10 years, the Hong Kong dollar has depreciated¹² against the mainland currency by about 24 percent. So even if you get a more attractive return from the Hong Kong insurance product, you stood to lose 24 percent over the past five to 10 years. So in that way, from the investment perspective, you may not be able to get the expected yield you are getting from the Hong Kong insurance product after factoring in the currency fluctuation¹⁰."

Hong Kong has seen its insurance market expanding rapidly in recent years.

With a population of around 7 million, the city has about 160 insurers, the largest number of authorized¹³ insurance companies in Asia.

1 commissioner   

n.（政府厅、局、处等部门）专员，长官，委员

参考例句：

• The commissioner has issued a warrant for her arrest.专员发出了对她的逮捕令。
• He was tapped for police commissioner.他被任命为警务处长。

2 premiums   

n.费用( premium的名词复数 )；保险费；额外费用；（商品定价、贷款利息等以外的）加价

参考例句：

• He paid premiums on his life insurance last year. 他去年付了人寿保险费。 来自《现代英汉综合大词典》
• Moves are afoot to increase car insurance premiums. 现正在酝酿提高汽车的保险费。 来自《简明英汉词典》

3 accounting   

n.会计，会计学，借贷对照表

参考例句：

• A job fell vacant in the accounting department.财会部出现了一个空缺。
• There's an accounting error in this entry.这笔账目里有差错。

4 analyst   

n.分析家，化验员；心理分析学家

参考例句：

• What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
• The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。

5 analysts   

分析家，化验员( analyst的名词复数 )

参考例句：

• City analysts forecast huge profits this year. 伦敦金融分析家预测今年的利润非常丰厚。
• I was impressed by the high calibre of the researchers and analysts. 研究人员和分析人员的高素质给我留下了深刻印象。

6 outstrip   

v.超过，跑过

参考例句：

• He can outstrip his friend both in sports and in studies.他能在体育和学习方面胜过他的朋友。
• It is possible for us to outstrip the advanced countries in the world.我们能超过世界上先进的国家。

7 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

8 diversifying   

v.使多样化，多样化( diversify的现在分词 )；进入新的商业领域

参考例句：

• Some publishers are now diversifying into software. 有些出版社目前正兼营软件。 来自辞典例句
• Silverlit is diversifying into new markets, such as Russia and Eastern Europe. Silverlit正在使他们的市场变得多样化，开发新的市场如俄罗斯和东欧国家。 来自互联网

9 devoid   

adj.全无的，缺乏的

参考例句：

• He is completely devoid of humour.他十分缺乏幽默。
• The house is totally devoid of furniture.这所房子里什么家具都没有。

10 fluctuation   

n.(物价的)波动，涨落；周期性变动；脉动

参考例句：

• The erratic fluctuation of market prices are in consequence of unstable economy.经济波动致使市场物价忽起忽落。
• Early and adequate drainage is essential if fluctuation occurs.有波动感时，应及早地充分引流。

11 fluctuations   

波动，涨落，起伏( fluctuation的名词复数 )

参考例句：

• He showed the price fluctuations in a statistical table. 他用统计表显示价格的波动。
• There were so many unpredictable fluctuations on the Stock Exchange. 股票市场瞬息万变。

12 depreciated   

v.贬值，跌价，减价( depreciate的过去式和过去分词 )；贬低，蔑视，轻视

参考例句：

• Fixed assets are fully depreciated. 折旧足额。 来自《现代汉英综合大词典》
• Shares in the company have depreciated. 该公司的股票已经贬值。 来自辞典例句

13 authorized   

a.委任的，许可的

参考例句：

• An administrative order is valid if authorized by a statute.如果一个行政命令得到一个法规的认可那么这个命令就是有效的。