13
THURSDAY, FEBRUARY 18, 1993
"THROUGH SUCH CONTACTS WILL DEVELOP BETTER UNDERSTANDING, CO- OPERATION AND, ULTIMATELY, WIDER ECONOMIC OPPORTUNITIES, HE ADDED.
-
HE NOTED THAT THE INSURANCE INDUSTRY HAD FACED CHALLENGES IN RECENT YEARS, AS NEW AREAS OF RISK HAD EMERGED.
SEVERAL
OF
"IN PARTICULAR, THE RISE IN BOTH THE VOLUME AND THE AMOUNT CLAIMS FOR EMPLOYEES COMPENSATION HAS BROUGHT UNDERWRITING LOSSES FOR MANY COMPANIES IN THIS CATEGORY OF INSURANCE.
"COMPANIES BALANCE SHEETS HAVE ALSO BEEN AFFECTED BY THE ESCALATION OF MOTOR THEFTS AND THE CONSEQUENT INCREASES IN MOTOR INSURANCE PREMIA HAVE NOT BEEN WELCOMED BY THE GENERAL PUBLIC, HE SAID.
++
"I CAN ASSURE YOU THAT THE POLICE CONSIDER THIS ΤΟ BE A PRIORITY ISSUE AND ARE DOING EVERYTHING IN THEIR POWER TO COMBAT THESE THEFTS.
OF
"THE PROPOSED INCREASE IN THE MAXIMUM PENALTY FOR THE OFFENCE TAKING A CONVEYANCE WITHOUT AUTHORITY SHOULD SERVE' AS A POWERFUL DETERRENT, MR TAM SAID.
10
THE POLICE AND OTHER PARTS OF THE GOVERNMENT ARE ALSO ACTIVE IN COMBATING THE CROSS-BORDER SMUGGLING OF CARS AND OTHER HIGH-VALUE GOODS AND IN SEEKING THE RETURN OF STOLEN PROPERTY, HE SAID.
"THE INSURANCE INDUSTRY IS ALSO PLAYING ITS PART BY ENCOURAGING POLICY HOLDERS TO TAKE GREATER PRECAUTIONS AGAINST THE THEFT OF THEIR VEHICLES, HE SAID.
ON A MORE POSITIVE NOTE, HE SAID GIVEN HONG KONG'S DEVELOPED STATUS AS A FINANCIAL CENTRE AND THE PREVAILING OPTIMISM OVER ITS ECONOMY, THE LOCAL INSURANCE INDUSTRY HAD GOOD PROSPECTS FOR GROWTH.
IN TERMS OF GROSS PREMIUM INCOME, GENERAL INSURANCE BUSINESS INCREASED BY 22 PER CENT FROM $9 BILLION IN 1990 TO $11 BILLION IN 1991.
TURNING TO LIFE INSURANCE, MR TAM SAID THE MARKET HAD ALSO BEEN DEVELOPING RAPIDLY.
IN 1991, THE GROSS PREMIUM INCOME IN RESPECT OK LIFF INSURANCE BUSINESS REACHED $7.3 BILLION.
"SUCH BUSINESS MAY EXPECT CONTINUED SUBSTANTIAL GROWTH, BEARING IN MIND THAT ONLY A SMALL SECTOR OF THE LOCAL POPULATION HAS YET TAKEN OUT LIFE INSURANCE AND THERE IS INCREASING AWARENESS OF THE NEED TO
INSURE, HE SAID.
■
ON THE LONG-AWAITED OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE, MR TAM SAID THERE WERE ESTIMATED TO BE SOME 22,000 RETIREMENT SCHEMES OF DIFFERENT TYPES, COVERING ABOUT ONE-THIRD OF THE WORK FORCE.
"THE GOVERNMENT