Hong Kong, July 11 – As Hong Kong’s insurance sector emerges as a highly lucrative career path, a wave of top talent, including graduates from China’s elite Tsinghua and Peking universities, has surged into the industry, sparking intense debate over its ethics and practices.
Former Professor Larry Lang of The Chinese University of Hong Kong ignited controversy with a recent social media outburst, branding the sector a “carefully constructed fraud” and highlighting seven alleged pitfalls in Hong Kong’s insurance market.
“Look around – nine out of ten high-caliber professionals in Hong Kong are now selling insurance. Why are Tsinghua and Peking University’s brightest minds turning to this field? It’s staggeringly profitable!” Lang declared, calling attention to reports of brokers earning up to HK$2 million annually. He argued that such earnings originate from policyholders, with commissions in the first year alone accounting for the full premium.
Industry insiders acknowledge a stark divide in performance among these recruits, with some rapidly achieving milestones like MDRT (requiring first-year premiums of HK$1.5 million) or COT (HK$4.5 million) within months, while others falter without sales and exit the business.
Hong Kong immigration divides applicants into categories: Type A, for those earning HK$2.5 million or more in the prior year; Type B, for graduates of top global universities with at least three years’ experience; and Type C, for recent graduates from elite institutions with less experience.
In response to the criticism, Richard Lui, Executive Director of Hong Kong’s Insurance Authority, addressed concerns over commission structures. Lui noted that front-loading commissions—where agents receive large payouts upfront—is unfair to consumers. He advocated for caps modeled after systems in Singapore and Malaysia to ensure greater transparency and equity.
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