Topic:%20Under%20the%20environment%20of%20the%20whole%20Hong%20Kong%20insurance%20industry,%20how%20Zurich%20can%20continue%20their%20business%20in%20Hong%20Kong?

1
TopicUnder the environment of the whole Hong
Kong insurance industry, how Zurich can continue
their business in Hong Kong?

• Econ 310 Sec 2 Group 4
• Financial Institutions in Hong Kong

Ko Kwan Lam, Coco 033012
Pan Yi Lam, Helen 033015
Leung Wing Hang, Erica 033017
Siu Kit Yuk, Karen 033038
Ng Man Sum, Sam 033047
Mak Ho Kong, Reef 033068
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Agenda

1. Introduction ...Reef
2. CEPA.....Reef
3. Opportunities..CoCo
4. Threats..Helen
5. History of Zurich..Sam
6. Strengths of Zurich...............................
   .............Sam
7. Weakness of Zurich.....Erica
8. Recommendation....Karen
9. Conclusion..Erica

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Introduction
033068 by Reef
4
Hong Kong Market

• Asian insurance market fully mature,
  transitional and incipient.
• HK market transitional? the demand for insurance
  grows substantially faster than wealth.

033068 by Reef
5
CEPA
033068 by Reef
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CEPA

• Closer Economic Partnership Arrangement
• covers 273 types of product and 26 services
  including insurance.

033068 by Reef
7
PRC Market situation and environment

• Gross domestic product
• Per Capita Disposable Income of Urban Residents
• Premiums of domestic and foreign insurance
  companies.

033068 by Reef
8
Gross domestic product

• 13,651.5 billion yuan, up by 9.5 over 2003 at
  comparable prices in 2004.

033068 by Reef
9
Per Capita Disposable Income of Urban Residents

• 7902 yuan in first three quarters of 2005, there
  is an increase of 11.7 compared with the same
  period of 2004
• The expenditure for family equipment services
  and medical care health increased 9.4 and
  15.3 respectively
• Chance

033068 by Reef
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Premiums of domestic and foreign insurance
companies

• 431.8 billion yuan in 2004, increased 11.3 from
  2003
• China is a big market!

033068 by Reef
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Recommendation

• Network for Hong Kong and China
• Enter the market in Shenzhen, Guangdong first,
  and then step-by-step move the direction to the
  North, Coverage of Zurich can be expanded from
  South to North.
• New strategy and plans in Zurich
• share information and set up the strategy
  together for future planning between HK and China
  branches

033068 by Reef
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SWOT Analysis
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Opportunities
033012 by CoCo
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Opportunities

• entering China market
• stability
• new product
• reinsurance captive insurance
• I.T.
• intermediaries

033012 by CoCo
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Threat
033015 by Helen
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Threat

• Difficult to open the market
• Highly fragmented and over-competitive
• Competitors
• Mutual funds, commercial banks, and other
  financial institutions

033015 by Helen
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Threat

• Uncertain outlook
• a negative growth of gross premiums in general
  insurance business
• Law regulation
• not enough to protect the insurers
• Business cycle
• affect the premiums

033015 by Helen
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History of Zurich
033047 by Sam
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Zurich Insurance Group (Hong Kong)

• Member of Zurich Financial Service
• 130 years experience
• Over 30million customers in the world
• Presence in Hong Kong in 1961
• Named Eagle Star Insurance Group
• Merger with Zurich in 1998
• Currently top 10 insurer in Hong Kong

033047 by Sam
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Strengths
033047 by Sam
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Strength of Zurich

• Great experiences
• 130 years
• Good rated
• rated A by Standard Poors
• rated A2 from Moodys
• New products are provided periodically
• Eg. Zurich Whole Life Hospital Cash Insurance
  Plan

033047 by Sam
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Strength of Zurich

• Professional staff
• using Sales Automation and Management System
  (SAM) to train their staff
• co-organized Executive MBA programme with the
  Lingnan University
• Supporting in community
• Can build up their brand name
• Eg. Zurich Business Administration Paper 2004

033047 by Sam
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Weakness
033017 by Erica
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Weakness of Zurich

• Financial strength not as high as the other
  competitors
• No 24-hour telephone hotline to ALL of its
  customers.

033017 by Erica
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Weakness of Zurich

• Lack of experience compared to competitors
• Lack of plans ? less choice
• For the General business market, the underwriting
  profit of Zurich decreased 62.88

033017 by Erica
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Recommendation
033038 by Karen
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Recommendation

• Business cycle
• New plans for new market
• Pets insurance
• Short term plan
• Internship program for university student
• Training for staffs
• Better after sale service
• Education

033038 by Karen
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Conclusion
033017 by Erica
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Revision
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Revision

• In which year, Zurich started its business with
  the name of Eagle Star Insurance Group?
• 1961
• 1982
• 1998

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Revision

• 2. What level of insurance market is Hong Kong
  in?
• a. fully mature
• b. transitionalc. incipient

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Revision

• 3. Does Zurich have a bright future?
• a. Yes, it does.
• b. No, it does not.

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End