The Historical Background of Hong Kong Insurance Industry
Insurance is one of the oldest industries in Hong Kong. And it has a significant role in the economic development of Hong Kong. The history of insurance can separated for five periods. And the following will show the details of this five periods.
Period 1 – From 1841 until to start of the Japanese Occupation in 1941 During this period, insurance much like banking and shipping become an important department in most foreign firm then investing an insurance arm was all the rage among them. On the early 1940s, Hong Kong had about 100 insurers in the colony period. Those insurers nearly all were British-Controlled subsidiaries that acted as agents and offered a single line of products related to the shipping and trading, which were severed foreign traders.1
Period 2 – From the end of World War II until the late 1960s During this period, there are marking a transition within the industry and the economic base was evolved, so did the insurance industry. Although marine products saw further growth, the competition became more cut-throat than ever. And the fire products were thriving while accident products especially auto and the compensation of employee were beginning to grow. That means the postwar insurance sector was gradually diversifying. On the other hand, the insurance market also remained dominated by British insurers, with only a few foreign-funded agencies, locally registered limited liability companies and subsidiaries of large foreign insurers getting slices of the growing pie.2
Period 3 – From late 1960s until the late early 1980s
During this period, the industry was occurred globalization and diversification this situation. In the 1970s, with the rise of stock exchange and continued economic growth then the international financial institution flocked to Hong Kong. As this favorable macro economic developments gave rise to many more upstart. That provides a chance to the local trading...
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