When purchasing an insurance policy, customers generally pay the most attention to the details of policy terms and expected realization ratios. They may also carefully compare the products of different companies to find the most cost-effective insurance policy. In addition to the comparison of products, the quality of insurance companies is also an important consideration when choosing insurance.
Tahoe Group spent HK$10.6 billion in 2017 to purchase Dah Sing Life from Dah Sing Bank and named it as "Tahoe Life" to start operations. However, Tahoe Life's parent company has been in financial difficulties in the past two years, and it has been rumoured that the company would be wound up. In February 2021, the insurance authority ordered the company to suspend its business. Tahoe has been prohibited from selling new policies since February 8, and it was not until August that it resumed normal. In the face of financial difficulties, Tahoe Life's solvency will also be affected to a certain extent.
The three major insurance companies in Hong Kong recently announced their interim performance. Among them, Prudential unexpectedly recorded a loss of US$4.64 billion (about HK$36.17 billion), and the overall annual premium equivalent sales decreased by 35%. When an insurance company turns profit to loss, investors who hold insurance policies with dividend need to be vigilant and pay attention to the difference between the actual and expected dividend distribution performance.
Therefore, insurance clients are advised to observe the quality of different insurance companies and market conditions regularly to avoid taking risks on their own.
Source:
Headline Daily, Business Focus
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