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Following is the speech by the Financial Secretary, Mr John C Tsang, at the 20th Anniversary Cocktail Party of the Hong Kong Federation of Insurers (HKFI) this evening (September 30):
Mrs Koon (Chairman of HKFI), Distinguished Guests, Ladies and Gentlemen,
Good evening.
Anniversaries are occasions to celebrate achievements and opportunities to recommit to the future. With this in mind, allow me first of all to congratulate the Hong Kong Federation of Insurers on your 20th anniversary-cum-rebranding ceremony.
The Federation has played a vital role in representing Hong Kong's insurance industry through a remarkable period of economic growth. Today, we have one of the most vibrant insurance markets in the region.
At the same time, the insurance sector is facing some pretty hefty challenges brought on by the global credit crunch.
The Insurance Authority has acted swiftly to shore up confidence in the sector and to protect our policyholders.
We are still navigating through the financial storm, and I have cancelled all my weekends so far to ensure that we maintain a steady course during these unpredictable times.
I am fully confident that our resilient financial sector will stand up to the test of the global credit crisis, thanks to the breadth and depth of experience of our financial services professionals and their level-headed approach in dealing with the challenges that we face.
Our insurance sector in particular has strength in depth.
Last year, Hong Kong was top in Asia in terms of insurance density and third in terms of insurance penetration. In 2007, the total insurance premium grew by 28.2 per cent to $200 billion, or roughly 12 per cent of our GDP. The total premium of general business grew 12.5 per cent to $7.6 billion, and long-term in-force business recorded growth of more than 23 per cent, amounting to $47 billion.
Our business-friendly and level-playing market environment has helped the insurance industry flourish over the years, in good times and not so good times. But its success would not have been possible without the hard work of the Federation of Insurers.
Over the past two decades, the Federation has been an important platform for co-operation and communication among industry players. It has set up the Insurance Agents Registration Board, launched the "Insurance Intermediaries Quality Assurance Scheme", and more recently, established the Employees' Compensation Insurance Residual Scheme Bureau.
The Federation has worked to enhance the professional knowledge and service standards of insurance practitioners and encourage the highest standards of professionalism and ethics within the industry.
The general public has benefited from seminars, forums and financial exhibitions organised by the Federation to promote a better understanding of the industry.
Ladies and Gentlemen, I spoke earlier of recommitting to the future. Tonight we witness the launch of a new and smart corporate logo for the Federation. This will open a new chapter in the Federation's history.
This also coincides with the second phase of government's rebranding exercise that we launched last weekend. I encourage members of the Federation to use your own experience and contribute ideas to the branding of our city.
Once again, I congratulate you on your 20th Anniversary and wish you every success in the years to come.
Thank you very much. And have a great evening.
Ends/Tuesday, September 30, 2008
Issued at HKT 18:32
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