1. INTRODUCTION
1.1 Background
Since 1997, Hong Kong has been facing the economic downturn that has never been come across in recent decades. The unemployment rate and the number of bankrupts are reaching the new records every month. Pay-cut is just accepted a trend in Hong Kong now.
Insurances are regarded as essential protection for everyone, however, it is also a long-term investment. In the other words, insurances cannot or are not supposed to give the policy owner the short-term benefits. Moreover, for many families burdened with mortgages, tuition payments, and increasing expenses, having one or both salary earners lose their jobs is a very traumatic event. Even for young people just graduating from school, a high unemployment rate means that it will be harder for them to find the job that they want at the pay that they desire. It a fact that the monthly premium payment could become the burden for someone unemployed or with considerate pay-cut. With these regards, it is valuable to evaluate how the insurance industry can survive and even grow in such a situation.
This management project report aims to study the case of Manulife Hong Kong, one of the leading insurance companies in Hong Kong.
2. COMPANY BACKGROUND
2.1 Overview of the Company
Canadian-based Manulife Financial commenced operations in Hong Kong in 1897. Now operating under three wholly-owned subsidiaries – Manulife (International) Limited (MIL), Manulife Funds Direct (MFD) and Manulife Provident Funds Trust (MPFTC) – it is one of the largest financial services organizations in Hong Kong.
Manulife Hong Kong was holding the 2nd position ...