MassMutual chief says it accounts for about 20pc of new business in the first half
Annuity has quickly become an integral part of the Hong Kong business of United States-based insurance giant MassMutual (Asia) as the city's population continues to age, according to managing director and chief executive Elroy Chan Siu-yuen.
In August last year the company launched an immediate annuity, which allows policyholders to deposit a lump sum in return for a fixed monthly payment until their death.
It caught on very quickly and in the first half of this year accounted for nearly 20 per cent of the company's new business. Mr Chan believes that as more people near retirement age it will become even more popular.
'With Hong Kong's population getting older and more people worrying about their livelihood after retirement, we are seeing great potential in these kinds of retirement-related products,' said Mr Chan.
He also credited annuities for the fourfold increase in MassMutual's Japan business during the same period.