}
aef1.1g/kw/2.2.3
CONFIDENTIAL
be
they would probably be fairly evenly spread; but he thought around
500 individuals might be involved within 5 years of 1997. Mr Norris said this was a manageable number, and a facility could constructed, probably through a combination of insurance cover and a loan. The risk premium would change over time; the more nervous members of HMOCS who sought an immediate facility would have to take a bigger uncertainty premium. A rough cost estimate
would be 5 per.
cent per annum on top of prevailing HK interest
rates. Actuarial details would be needed and a model drawn up. If a single company were prepared to do both the life insurance and loun parts of the package, it would be better were it to be based in HK, though UK life assurance companies had only a modest
presence in HK.
Mrs Brown said it was very much a matter for the HKG to approach possible private sector institutions. Mr Norris offered to provide a list of possible private sector firms that might be interested in setting up such a scheme.
CONFIDENTIAL
KEVIN WOODFIELD AEF1
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