Hong Kong firms fear this could lead to a poaching war for experienced agents
Hong Kong insurance agents may be allowed to sell policies in China as part of the proposed Closer Economic Partnership Agreement (Cepa), a trade pact between the mainland and Hong Kong that will allow SAR firms to take advantage of the early liberalisation of mainland markets. Details of the Cepa accord will be officially unveiled at the end of this month.
That will be good news for agents but not for insurance companies, which fear the measure may lead to more poaching wars.
At present, Hong Kong insurance agents are banned from selling in China. Only mainland residents can sell insurance in China.
But according to Bernard Charnwut Chan, legislative councillor for Hong Kong's insurance industry, that may soon change. Hong Kong insurance agents will be allowed to sell on the mainland if they pass examinations there - with the caveat that they can only sell products offered by mainland insurers. 'This will provide more business opportunities and sales channels for these individuals,'' Mr Chan said.
Mr Chan said the arrangement would benefit Hong Kong insurance agents rather than companies.
He said China was unlikely to relax the high entry threshold for Hong Kong insurers that require firms to have a 30-year operating history and assets of at least US$5 billion.