40% of the “shrinking sand” response is cold, correctly assessing the annuity function
Life is seventy years old, and this old Chinese saying that it is used in Hong Kong, where the life expectancy per capita is “out of the world”, is already out of date. According to statistics released by the Insurance Authority at the beginning of last month, the new office premiums for the personal annuity business in the first three quarters of 2017 exceeded $6.8 billion, a year-on-year increase of 23%. The overall new premiums are equivalent to the full year of 2017. Eighty-nine.
Looking at the above figures alone, the perception and demand of Hong Kong people for such wealth management products as annuities has increased with the ageing of the population. However, under the Government’s vigorous publicity, the first batch of life annuity schemes of the Hong Kong Annuity Company of the HKMC has only completed 5,500 cases, compared with 9,410 cases received in August last year. The difference in subscription intention registration is more than 40%. The amount of completed insurance coverage is only about 2.8 billion yuan, which is also much lower than the purchase intention amount of 4.9 billion yuan.
Obviously, among the people who originally intended to participate in the life annuity plan, many people want to think about changing their minds after the Chu, that is, the so-called “shrinking sand”. In order to reinvigorate the interest of the retreat, the Annuity Company has introduced three optimization measures, including 100% one-time compensation for personal injury, special payment for medical and dental treatment expenses, and a maximum personal insurance coverage of $1 million. Increased to 2 million yuan, and changed to full-year sales.
We believe that these three measures will help to repair the loopholes that the annuity company is not thinking about in a number of links, but it is still difficult to fundamentally boost the public’s desire to participate in the life annuity plan. It is worth noting that as early as the summer “intention” stage, the annuity company received more than 9,000 registrations, involving a subscription amount of only 4.94 billion yuan, less than half of the issuance limit of 10 billion yuan, the average The subscription amount is only $525,000. From this, it can be seen that the public’s reaction at that time was far less enthusiastic than the issuer’s expectations; on this basis, the number of insureds and the total amount of insurance must be doubled. The annuity company doubled the maximum amount of personal insurance coverage to two million yuan. It is possible to prescribe the right medicine and effectively activate the subscription interest.
The public is not happy with the life annuity described as “self-made long-food”. Except for the insured amount, it is necessary to pay a considerable amount in one time. The annuity cannot be freely traded in the market like traditional assets such as stocks, and the bank will be deposited after the interest rate is gradually normalized. In addition to providing competitive returns, it is more important that plan participants take back their principals in their lifetimes under the monthly quota of “distributing food”. It takes more than ten years. Assume that the insured person purchases a life annuity of one million yuan at the age of 65. That is equal to the additional income after the “return to the original” in the near eight years, and then the longer the life is “number”.
After the introduction of optimization measures by the annuity company, the maximum amount of personal insurance coverage will be raised from one million yuan to two million yuan. In fact, only the insured persons who choose to increase the weight will be able to “double out the grain” in proportion (the men receive a guaranteed annuity of five per month). From $800 to $1,160, and women from $5,300 to $10,600, but it is impossible to change the life expectancy of the life-long annuity and the actual income depends on the life of the insured. These two facts. The key to the cold reaction of the public is not to receive a guaranteed annuity of more than 5,000 yuan per month or more than 10,000 yuan. It is doubtful about the number of years in which they can live to benefit from the annuity plan. Therefore, the balance of the premiums paid by the policyholder is another matter).
The annuity plan is not without benefits. Here is an example. Two retirees with similar economic conditions and similar monthly expenses, A’s savings/investment portfolio is enough to allow him to live in peace and prosperity until he is eighty years old, and the money on his hands can only be seventy-five years old. From the perspective of financial management, A naturally “outperforms” B. However, when A enters the age of 80, he will also face the problem that B will encounter after he is 75 years old. The point is that neither of them can be sure how many years they can live. Under such circumstances, the life annuity can play a role in ensuring that the participants have no worries every month, so that the insured can be spared from the “long life”. Starting from this concept, the function of an annuity is similar to insurance.
Although Hong Kong is a long-lived society, according to the data of the Department of Health, the average life expectancy of men in Hong Kong is 81.3 years old and women are 87.3 years old. The number of people who have a good life regards lifelong annuities as dispensable and difficult to understand. . However, it is not uncommon for Hong Kong people to live to 90 or even a hundred years of age. If a life annuity can buy a zero-risk peace of mind for those who are worried about “life-long money,” then it is not a formal analogy.