Soldiering on

With a prime location on the southeastern edge of China, a shared culture with the Chinese people, and both Chinese and English as its official languages, Hong Kong, China, has long been viewed as a gateway to mainland China, especially when it comes to financial services.

“With the advantage of Hong Kong’s location, which is at the meeting point between East and West, you can enjoy the best financial planning services and the best products here,” said 13-year MDRT member Joyce Wu Shuk Ping.

Henry Sei Yan Wong, a 23-year MDRT member, agrees that having a connection to the more than 1.4 billion people in mainland China gives advisors in Hong Kong a notable advantage.

“These factors provide a significant boost to the competitiveness and advantages of Hong Kong in financial services and the life insurance industry,” he said.

However, the effects of COVID-19 and the resulting economic downturn have had a notable impact in Hong Kong, as the special administrative region has become increasingly cut off from the People’s Republic of China. Wong says that while mainland China has traditionally been a significant part of his clientele, he has not made any deals there in the past two years. The prospect pool in Hong Kong also has shrunk. Between June 2020 and June 2021, the population decreased by more than 89,000, marking the first population decline in 18 years. This drop is thought largely to be the result of increased emigration away from the region.

But rather than despair, Wong has decided on a more positive and proactive approach. He points out that insurance plans from Hong Kong have worldwide coverage, so even if his clients move away, they’ll still be protected.

“No matter where you come from or where you are heading to, the insurance plans are 100% effective,” he said. “We have no choice but to soldier on and continue developing the Hong Kong market.”

To that end, the profession in Hong Kong is facing some major changes, primary among them being more stringent regulations. In 2015, the government established the Insurance Authority to modernize the regulatory infrastructure, provide better protection for policyholders and comply with the requirement of the International Association of Insurance Supervisors. Wong characterizes this as “a complete departure” from previous industry supervision and says it has “raised the bar” for those who wish to enter the profession.

“Hong Kong’s insurance industry will become increasingly demanding and grow steadily under a highly regulated environment,” Wong predicts.

Wu says the biggest change in recent years has been the regulated enhancements to the financial needs analysis process advisors conduct when selling products.

“It helps us to know the client more and more properly,” she said. “It is good to help us provide continuous service to the client.”

Additionally, Hong Kong excels at keeping up with developing and introducing new products to clients. For instance, Wu points to specialized critical illness coverage for conditions like cancer, stroke and heart attack.

“It really is much more adaptable to the market and the needs of the population,” she said. “It creates more opportunities for me to meet clients and enhance their protection.”

Of course, government regulations surrounding the pandemic have meant fewer in-person meetings than advisors might want. But Wu says that the utilization of information technology is reaching its peak and believes the trend will continue in the future.

“We have to be more tactful on relationship-building with clients, because we usually meet them less often than before,” she said.

Wong, too, has had to adjust his tactics for communicating with clients.

“Frankly speaking, it is necessary to change the way we approach clients and talk about insurance,” he said.

He had become frustrated that clients would read his text messages, but they never replied to them. So he developed a technique to communicate more effectively with his clients and induce a response. He’s also taught other advisors in Hong Kong — 350 to date — how to use the method in their own practices. He believes his original approach will help him achieve MDRT qualification in just the first five months of 2022.

It is this type of adaptation and creative thinking that led to Hong Kong topping the list of MDRT members around the world, with 15,719 members this year. And Wu says the tenets that are central to MDRT remain strong, even in the face of unprecedented challenges.

“It is not about how much you earn; it is about how much you give,” she said. “‘Be MDRT’ is the basic belief in the profession.”

CONTACT

Henry Sei Yan Wong henry-sy.wong@aia.com.hk

Joyce Wu Shuk Ping joyce.wu@aia.com.hk