Eagle Star Insurance, with back-up from Swiss-based parent Zurich Financial Services Group, plans to invest $150 million to develop Mandatory Provident Fund services.
Assistant general manager Kevin Chan Kam-chung expected the group would be able to secure 5 per cent to 10 per cent of the available MPF business.
'The MPF is such a big business that we simply could not neglect it,' he said.
'We hope to provide MPF services to the small and medium enterprises with less than 50 staff.' Due in December next year, the MPF will require that 300,000 local companies - and their 2.2 million employees - to set up an MPF plan.
Zurich Financial Services Group has set up a trust company, the Zurich Financial Services Pension and Trust, to provide trustee services for the MPF.
It will use Eagle Star's 1,200 life insurance agents to sell MPF services. All will receive training to prepare for MPF sales agents examinations.