Zurich chief rules out any U-turn on life agents in Hong Kong, despite fall in sales
After dismissing 700 agents three years ago, new life sales have slowed dramatically – but new CEO says cost savings outweigh loss of business
Zurich Insurance, which dismissed its entire 700-strong team of life insurance agents in Hong Kong three years ago, has seen a dramatic drop in new sales of policies during the period.
But it still has no intention of going back to using them, its newly appointed chief executive has told South China Morning Post.
Eric Hui Kam-kwai, who became chief executive of Zurich’s general insurance business in Hong Kong in June 2012, expanded his role to also head the company’s life business in September, and became its chief executive in the city.
“It is true that new life sales have dropped since we stopped using agents. However, our overall costs are much lower since we started selling through brokers and independent advisors.
“We have no intention of rebuilding the life sales team but we do plan to develop other sales channels such as banking partners and the internet to sell our life products,” Hui said.
Zurich is Hong Kong’s second largest general insurance firm with total premiums of HK$2.4 billion last year, according to government statistics. It is among the largest providers of travel insurance, corporate, car and employees’ compensation cover.