Social Media As The Driving Factor In The Insurance Buying Frenzy In Mainland China
How do Hong Kong insurance companies sell policies to the Chinese in Mainland? Wen is a part-time agent in Hong Kong who netted HKS130, 000 in commissions after she posted a few remarks about insurance in WeChat, a popular instant messaging app in China. Her first 3 clients flew to Hong Kong at their own expense to buy insurance policy from Wen.
Chatter in WeChat is driving the insurance buying frenzy in Mainland China with insurance sales surging to their highest levels. This phenomenon continues even with the restrictions imposed by Mainland China to stop the exodus of billions of Yuan from the country. However, agents are also very careful with their posts to avoid increased scrutiny from Chinese regulations. Although agents continue to post in social media, they have shifted to quieter practices to draw less attention to the pace of insurance sales.
According to the Commissioner on Insurance in Hong Kong, insurance sales to the Mainland Chinese have more than doubled during the second quarter of the year to HK$16.9 billion compared to the first quarter. Demands for Hong Kong insurance policies have increased in spite of regulations that aim to dampen the surge in policy purchases. The boom in insurance purchases has actually lifted the revenue of the Hong Kong insurance industry with sales reaching 58% for the first half of the 2016. However, the significant uplift from Mainland China’s insurance purchases has increased the amount of new premiums by 83%.
No matter the restrictions imposed to cool down the insurance buying frenzy, both the insurance agents and buyers have ways to go around them. According to an economics professor from the School of Humanities and Social Sciences at Beijing Institute of Technology, the government is turning a blind eye to a certain extent although they haven’t completely closed the doors.
Social media plays a big role in spreading information about insurance like what happened when Wen posted a message in WeChat. It makes sense for insurance providers to pay attention to insurance marketing tips they can use in social media in order to boost sales. Expert professionals can provide the service to improve marketing efforts.