The understandable shift in investor sentiment over the past two years has clearly benefited financial institutions whose core strategy is to offer customers steady returns, reliable products and the wisdom of a long-term perspective.
These priorities have enabled HSBC Insurance to claim top spot in the local market for new individual life policies, with a 22.4 per cent market share in the second quarter of this year, according to the Office of the Commissioner of Insurance. Such success is seen as validation of the strengths of the bancassurance model and confirmation that the needs of customers are being met. And, with further growth forecast, it has also created a requirement for up to 30 insurance specialists, who will offer training and day-to-day support for the group's expanding team of wealth management advisers.
'Customers are becoming much savvier and demanding so, to be successful, you must have a needs-based approach and the right type of products,' said Arthur Cozad, head of bancassurance and channel management for HSBC Insurance (Asia-Pacific) Holdings.
'By providing a variety of solutions customers know and trust, and the convenience of being able to get them through a local branch, we have the chance to develop longstanding relationships.' This competitive edge, he said, had made it possible to overtake traditional insurance companies and had proved resilient throughout the financial crisis. The range of products now included life, medical, travel, MPF and investment-linked choices, meaning comprehensive retail coverage was available, and the financial backing of the HSBC Group gave an extra sense of stability.
'We 'manufacture' all of our own products in Hong Kong,' Cozad said. 'Everything from development and marketing to underwriting and claims settlement is done by our staff, while the bank's wealth management professionals look after distribution and customer service.'
A new product offering simplicity and flexibility has been launched in response to market conditions and changing investor demand.
The 'WealthInvest' insurance plan is a direct result of in-house research which shows a desire among Hongkongers to go 'back to basics'. It allows investors to combine regular saving through select unit trusts with life insurance protection and helps them meet medium- to long-term financial goals.