FAQ

Insurance companies in Hong Kong are regulated by the Insurance Authority and can be classified into three main categories:

1. Life Insurance Companies: These insurers provide policies that offer financial protection and savings options, such as life insurance, annuities, and health insurance

2. General Insurance Companies: These companies offer a wide range of non-life insurance products, including property, casualty, motor, travel, and liability insurance

3. Composite Insurance Companies: These insurers are licensed to offer both life and general insurance products, providing a comprehensive range of coverage options under one roof

Insurance agents represent and act in the interest of the insurance companies they work for, while insurance brokers are independent professionals who prioritize their clients needs.

According to Cap. 41 of the Insurance Companies Ordinance, insurance intermediaries must be registered either as agents or brokers. Agents can be registered as individuals or business entities, whereas brokers must be registered as business entities. In the life insurance sector, “in-house” agents carry the insurer’s name card and operate as if they are employees.

In Hong Kong, an insurance agent can represent up to four insurers, with a maximum of two being life insurers.

For simple insurance products, such as travel or home insurance, going direct can be a viable option. However, it's crucial to fully understand the coverage details of insurance policies that you are considering. While some types of insurance are becoming more commoditized with minimal differentiation, the process and manner of handling claims can vary significantly among insurers.

For more complex or large-scale insurance policies, we highly recommend consulting with an experienced insurance broker. They can provide expert advice, help you navigate the complexities of the policies, and ensure you get the coverage that best meets your needs.

Insurance brokers provide valuable services that can make a significant difference for clients. Here are some ways we can help:

1. Navigating Complex Policies: Brokers assess clients’ needs, compare policies from multiple insurers, and negotiate terms to secure comprehensive coverage at competitive prices

2. Claims Assistance: Brokers assist clients in filing claims, ensuring all necessary documentation is provided, and advocating on their behalf with the insurance company

3. Risk Management Advice: Brokers conduct risk assessments and recommend suitable insurance products and strategies to mitigate risks

The role that a competent broker should play is not only confined to finding the right insurance policies but also providing ongoing support and expert advice to their clients.

For your first meeting with an insurance broker, it’s helpful to bring the following:

1. Existing Insurance Policies: Any current insurance policies you have

2. Assets and Liabilities: A list of your assets (e.g., property, investments) and liabilities (e.g., loans, debts)

3. Specific Insurance Needs or Concerns: Any particular insurance needs or concerns you want to address

4. Claim Records: Documentation of any past insurance claims, if applicable

This information will help the broker understand your situation and provide tailored recommendations.

Ensuring your business is adequately insured involves a few key steps:

1. Risk Assessment: Conduct a thorough assessment of your business risks and identify areas that need coverage

2. Tailored Policies: Work with a broker to find policies that are specifically tailored to your business needs

3. Regular Reviews: Regularly review and update your insurance coverage to adapt to any changes in your business operations or risk profile

If your insurance needs change, it's important to:

1. Contact Your Broker: Inform your broker about any changes in your business or personal circumstances

2. Review Your Policies: Your broker will help you review your current policies and make necessary adjustments to ensure you remain adequately covered

3. Stay Proactive: Regularly communicate with your broker to stay ahead of any potential gaps in coverage

There are several strategies to lower your insurance premiums while maintaining adequate coverage:

1. Increase Deductibles: Opting for a higher deductible can reduce your premium costs

2. Bundle Policies: Combining multiple policies with the same insurer can often lead to discounts

3. Implement Risk Management Practices: Taking steps to reduce risks, such as installing security systems or implementing safety protocols, can lower your premiums

4. Regular Policy Reviews: Work with your broker to regularly review your policies and ensure you are not over-insured or paying for unnecessary coverage