Part 4: Customer Service

Paper II — General Insurance · Part 4: Customer Service

Q1 Free

Which of the following best describes the importance of quality customer service to the business development of insurance intermediaries?

A. Quality service is only needed when customers complain
B. Customer service is only important during claims
C. Quality service only increases operating costs without business growth
D. Quality service builds trust, promotes customer loyalty, generates word-of-mouth and long-term business growth

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Correct Answer: D

Quality customer service runs throughout the entire insurance business process, including pre-sale consultation, insurance services, policy management and claims assistance.
Good customer service builds long-term client relationships, increases customer loyalty, and generates new client referrals through word-of-mouth.
In a competitive market, customer service is an important factor for differentiation.

Q2 Free

Under Hong Kong insurance regulations, is it permitted for insurance intermediaries to provide 'Rebating of Commission' to clients?

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Correct Answer: C

Under the regulations of the Insurance Authority (IA) of Hong Kong, offering commission rebates to clients is a regulatory breach for insurance intermediaries.
Commission rebating refers to an intermediary returning part of their commission to the client as an inducement to purchase insurance.
This practice is considered unfair competition and may harm the client's protection interests (clients may purchase unsuitable products in exchange for rebates).

Independent study aid. Not affiliated with or endorsed by the Insurance Authority (IA) or the Vocational Training Council (VTC).