Prudential offers 10pc discount
British-based Prudential Assurance is offering a 10 per cent discount on premium payments for all new life policies until the end of next month.
Chief operating officer Richard Ip Hong-man said the offer had been inspired by the 10 per cent tax rebate proposed by the Government in this month's Budget.
The rebate, on tax payments by individuals and corporations for the 1997-1998 financial year, is designed to bolster private consumption to boost the economy.
Mr Ip said Prudential wanted its discount on premium payments to have a similar impact to the tax rebate.
'We hope to help ease the financial burden of our policyholders,' he said.
Mr Ip said the discount plan would cost the company about $4 million as it expected to receive about $40 million of new premium income during the five-week offer, which started on Saturday.
Mr Ip said the life insurance industry had not been hit hard by the economic downturn. Last year, the industry saw new premium growth of 9 per cent.
'When the economy is bad, people want more assurance and protection,' he said.
