Facing difficulties buying insurance in person due to the pandemic? Here are 3 key strategies to help yourself.

The pandemic has led Hong Kong residents to reduce outdoor activities and social interactions, while simultaneously increasing their focus on health risks, resulting in a growing demand for insurance. For those who wish to purchase insurance but are reluctant to meet insurance brokers or agents face-to-face, what are the alternative options?

1. "Buy Insurance Independently" – Simple Products Available for Online Purchase

Nowadays, many insurance products can be purchased online independently, including term life insurance, short-term savings insurance, as well as certain voluntary health insurance and tax-deductible annuity products. Consumers can visit the insurance company’s website or app to review product details and premium information before proceeding with the purchase, a process that is often simple and quick.

Although these products are sold online, it does not mean their structures are straightforward; the terms and conditions can be quite complex, with voluntary health insurance being a prime example. In fact, prospective policyholders can use an online insurance comparison platform, where professionals such as actuaries break down the product terms in detail. This allows potential buyers to compare options and purchase insurance directly online.

2. "Complex Products Need Assistance" – Remote Consultations with Advisors via a Click

If you need assistance or wish to purchase insurance products that are not available for online sale and have complex structures (including those with investment components or long-term commitments), but still prefer to avoid face-to-face meetings, what can you do?

The Insurance Authority currently permits insurance companies to offer remote onboarding (Virtual Onboarding) through video conferencing platforms like Zoom or Teams for the sale of all life insurance products, including investment-linked insurance. A spokesperson from the Insurance Authority noted that, as of the end of February this year, a total of 16 remote onboarding sandbox applications had been approved. According to 10Life statistics, insurance companies and certain banks, including AIA, AXA Hong Kong and Macau, BOC Life, FWD, Hang Seng Insurance, HKMC Annuity, HSBC Life, Manulife, Prudential, Sun Life, YF Life, and Well Link Insurance, offer remote onboarding services.

However, a challenge remains: consumers may struggle to find quality insurance agents to address their queries. This is where 10Life can assist. On this platform, consumers can directly connect with hundreds of insurance advisors (agents or brokers), many of whom provide self-introductions for greater transparency; users can also view advisor satisfaction ratings through a "5-star rating system." Once a suitable advisor is selected, a video conference can be arranged to address any concerns.

Image: 10Life users can instantly find insurance advisors on this platform 

3. Specific Protection Products Available Through "Omni-Channel Sales"

In some cases, if you wish to purchase a product from an insurance company that does not offer remote onboarding services, what options are available?

In fact, the Insurance Authority has introduced temporary facilitative measures, allowing citizens to purchase specific protection-oriented insurance products through non-face-to-face channels such as online platforms, phone calls, mail, or video conferencing. These products include tax-deductible annuities, voluntary health insurance, term life insurance, policies offering protection without high savings components, or renewable policies with no cash value. These temporary measures will remain in effect until 30 September this year.

A spokesperson from the Insurance Authority stated that, as of the end of January this year, approximately 45,000 policies were sold through non-face-to-face channels under these temporary measures, with a total annualised premium of over HKD 570 million. This includes 6,700 qualifying deferred annuity policies and 9,800 voluntary health insurance plans.

Conducting Video Onboarding – Take These 5 Safety Precautions

Lastly, when purchasing insurance through new channels like video conferencing, the Insurance Authority reminds prospective policyholders to take adequate safety precautions. First, avoid conducting such sessions in public places to prevent personal information from being disclosed to third parties. Second, after receiving an email with a video conferencing login link, it is advisable to proactively contact the relevant insurance company or intermediary to verify the authenticity of the email and link.

Third, pay attention to the disclaimer before joining the video conference. Fourth, although policyholders have the right to refuse recording of the sales process, given that some life insurance policies may span decades, it is recommended to consent to video or audio recording to document the entire sales and onboarding process, safeguarding the rights of both the policyholder and beneficiaries.

Finally, since policyholders can complete the purchase with a single electronic signature, which also signifies confirmation and agreement to all policy documents, it is crucial to thoroughly review all documents before proceeding with the electronic signature.

Note:

1. This article was compiled by 10Life using market information gathered from various sources. It is for general reference only and does not take into account any individual needs or suitability, nor should it be considered as sales advice. Before purchasing insurance, consult a licensed insurance advisor to discuss a plan that suits your needs, and refer to the information provided by the insurance company.

2. This article was last updated on 28 March 2022.

This English version of this article has been generated by machine translation powered by AI. It is provided solely for reference purposes. In the event of any discrepancy or inconsistency between this translation and the original Chinese version, the Chinese version shall prevail.