1. Members Report: Nova Insurance Consultants Ltd
AAA Conference | 24 May 2019
Beijing, China
Members Report: Nova Insurance Consultants Ltd

2. AAA Members Report – Hong Kong
Country: Hong Kong
Name of Member: Nova Insurance Consultants Ltd
Membership details (update)
- Annual Premium Turnover: USD105M
- Number of Staff: 65 in Hong Kong; 43 in China

3. AAA Members Report – Hong Kong
Countries of Operation: Hong Kong, Macau, China
- Location: Hong Kong with a branch in Macau
Insert map with office/country locations if possible

4. AAA Members Report – Hong Kong
% of income by top 5 – 10 industries
1) Construction
2) Property Developer
3) Property Manager
4) Hotels
5) Manufacturers/Traders

5. AAA Members Report – Hong Kong
Professional Indemnity Details (update)
- Limit of Indemnity: USD30M
- Legislative Requirements:
2 times annual brokerage with maximum at HKD75M
- Insurers:
- AIG Insurance Hong Kong Ltd; and
- Markel Syndicate at Lloyds

6. AAA Members Report – Hong Kong
Who regulates Insurance Brokers in the country:
(1) The Insurance Authority (from mid-Sept 2019);
(2) The Hong Kong Confederation of Insurance Brokers;
(3) Professional Insurance Brokers Association
What Insurance Broker and Agent Education Programs exists:
Insurance Intermediaries Quality Assurance Scheme;
Continuing Professional Development (“CPD”) Programme
How many Insurers operate in the country:
161 insurers in Hong Kong (as at 31 Dec 2018)
How many Insurers are active Broker markets:
Mostly (over 80%)

7. AAA Members Report – Hong Kong
Market Conditions
- Number of Insurers decreasing, increasing, stable: Increasing
- Insurance capacity decreasing, increasing, stable: Stable
- Premiums decreasing, increasing, stable:
Premium remains stable except construction EC (Employees Compensation) increasing and some increment in Property too.
- Commissions decreasing, increasing, stable: Stable
- Amount of fee income as a percentage of total Broker income:
Below 5%
- Average Broker income percentage earned as commission:
15%

8. AAA Members Report – Hong Kong
Number of Brokers decreasing, increasing, stable: Stable
Percentage of business controlled by Brokers: Around 50% (no official statistics available)
Percentage of business controlled by insurers (direct):
Around 10% (no official statistics available)
Percentage of business controlled by other intermediaries e.g. banks:
Around 40% (no official statistics available)

9. AAA Members Report – Hong Kong
Information Technology used by Brokers (including online platforms): Limited

10. AAA Members Report – Hong Kong
Political issues at time of report: Stable
Economy at time of report: Stable
Member’s view of Insurance Broking over the next 3 years: Stable

11. AAA Members Report – Hong Kong
Member’s principle activities/successes over last year:
Insurance broking
Risk management
Any major issues/challenges:
Shortage of talent
High operating costs especially rent and salary
Member’s planned activities over the next 3 years:
Steady expansion

12. AAA Members Report – Hong Kong
Any potential business/opportunities for AAA members to work together:
Inward referrals : MNCs investment into Hong Kong, Macau & China.