The Digital Insurer Award - HSBC Life (International) Limited

1. The Digital Insurer - Insurer Innovation Award 2021

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Introducing Digital Policy Value Projections
What we noticed What we did about it
Customers are curious to understand how their
policy value grows over time
Customers are eager to know the non-
guaranteed cash value
Customers want to know when their policy will
break even, so they can plan when to surrender
the policy for liquidity
…and want all these answers instantly
at their fingertips
Launch of Digital Policy Value Projections
A revolutionary platform for customers to view projected
policy values, with enhanced features that are currently not
available via paper illustrations:
Real-time Graphical and
interactive
Additional figures: Expanded
product scope:
• Total projected
premium paid
calculation
• Projected total benefit
%
• Non-participating
endowment products,
Annuity and Whole of Life
policies
*The Digital Insurer - Insurer Innovation Award 2020 winner
• Understanding that customers often feel insurance is complex, HSBC Life launched the first-in-market Digital Policy Value Projections
platform – a new function within its award-winning Insurance Dashboard*.
• This innovative and exciting new functionality enables customers to have a simple and clear view of their current policy projection
anytime, anywhere and without waiting until the anniversary for paper benefit illustrations.

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A new benchmark in Hong Kong’s insurance industry
Available online and via mobile, the Digital Policy Value Projections platform not only provides customers with greater transparency on their
policy values, but also simplifies complex policy information with an intuitive design and interactive charts.
Annual Paper Illustrations Real-time Reprojections
Projected benefit
Cumulative received/projected value
• Only sent to customers by mail on an annual basis
• Written request with a lead time of 3-4 days is required if they
want to view their projected policy values before their next policy
anniversary
Customers can easily stay on top of their wealth matters
anytime, anywhere

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Without compromising any calculations available in paper illustrations, we leveraged on a real-time calculation engine that uses the latest
rates and charges to calculate accurate values, allowing us to be transparent with our customers. Customers can now view their real-time
policy value projections whenever they wish.
Greater transparency with real-time value projections
Select ‘View future
value projections’
on policy details
page
projections
Projected benefit
Cumulative received/projected value
2 i) FOUR tabs for easy navigation : Highlights,
Payout benefit, Cash/ Surrender value and
Death benefit
ii) Information includes projected total premiums
paid, cumulative received/ projected value, and
projected benefit
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HSBC Life new
products, services and
promotions at a
glance
Select any policy to
view the projections
Personal Internet Banking Mobile banking

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Case Study #1: Annuity with payout
Kate has an HSBC Early Income Annuity Plan and is currently in the annuity period where she is receiving monthly payouts to support her retirement
expenses. She wants to see the amount of her non-guaranteed payout when she turns 85 years old …
The interactive chart shows
the total payout and the
guaranteed / non-guaranteed
breakdown at any age,
starting from the current
policy year.
1. Select the ‘Payout benefit’ tab for details of monthly payouts
2. Tap the button to view the projected value at 85
3. The orange portion represents the non-guaranteed payout
4. The annual payout at age 85 (guaranteed and non-guaranteed)
is shown
5. Both previous payouts and projected future payouts are shown
6. The payout benefit table shows the breakdown of the payout at
a certain age (in 1-year or 5-year intervals)
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Non-guaranteed payout at her age of 85

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1. Tap on the Cash/Surrender value tab
2. Activate non-guaranteed portion and select age 80
3. Guaranteed/ non-guaranteed cash benefit and total payout against total premiums paid at age 80 are
shown
4. This number includes all monthly annuity payouts received and cash benefit upon surrender
5. Cash/surrender values are shown in table format for easy comparison across the policy years
Cash/Surrender value at age 80
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2
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Breakeven
point
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Death benefit
1. Tap on the Death Benefit tab
2. In this interactive chart, she can see her guaranteed/non-guaranteed Death
benefit and total premiums paid across time
3. Also shown in table format for easy comparison across the policy years
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Case Study #1: Annuity with payout
Afterwards Kate wonders how much her cash benefit would be if she surrenders her policy at 80 years of age, and also how much her children would receive if
anything happened to her …
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Tom has an annuity plan with HSBC and has chosen to rollover and accumulate all his paid monthly annuity payments to earn additional interest. He wants to
check how much he is projected to receive if he were to surrender his policy at age 63 and also the amount his beneficiaries are projected to receive in the
unfortunate event of his passing …
1. Tap on the Cash/Surrender value tab
2. Select age 63 to view his guaranteed/non-guaranteed cash benefit
3. The interactive chart shows the breakeven point with non-guaranteed cash value
(orange) and without non-guaranteed cash value (green)
4. Tom can also expand the table to view the details
Cash/Surrender value at age 63
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Death benefit
1. Tap on the Death Benefit tab
2. The interactive chart shows guaranteed/non-guaranteed death benefit and total
premiums paid across time; non-guaranteed continues to grow over time due to
special bonus and accumulated dividend and interest
3. Tom can also expand the table to view more details
At age 63, Tom’s
guaranteed death
benefit already
exceeds the total
premiums paid.
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Case Study #2: Annuity with accumulating payments (rollover)
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Day 1 – Jack requests to change the settlement option from accumulation to payout.
Day X - HSBC Life operations team changes the option; a notification will be issued once it has been completed. Dashboard will be updated and the re-projections page will reflect the
latest settlement option.The payout tab will be shown in the following month. If the change happens mid-year, the first year will be prorated.
From rollover to payout
Jack is currently in the annuity period and has been accumulating his monthly payouts. However, his financial situation has recently changed and wants to
cash out his monthly payouts to support his retirement expenses ...
Day 1
The first year’s
figure will be pro-
rated if the change
was processed
mid-year.
Day X
This chart would reflect
a decreasing trend (the
previous accumulated
cash value would
remain). Cumulative
received/projected value
would remain the same.
Five years later, Jack’s
financial circumstances
improve and he is ready to
change the annuity
settlement option from
monthly payouts back to
rollover and accumulate
interest once again.
The cash surrender and
death benefit will be
refreshed with an
increasing trend, with
figures commencing from
the next anniversary.
Case Study #3: Changing annuity settlement option during accumulation period

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Case Study #4: Adjusting dividend / interest rates
According to the latest market conditions, HSBC Life decides to adjust its dividend / interest rates, customers then can see their latest projected returns on
the reprojections page for transparency ...
Day 1 – HSBC Life changes the dividend rate / interest rate.
End of day 1 – HSBC Life operations team changes the rate table overnight; reprojection charts and figures will be refreshed.
The non-guaranteed
portion of the chart
will reflect the new
rates
Day 1 End of day 1
The non-
guaranteed figure
will also be
adjusted

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Case Study #5: Withdrawing dividends
Bob is facing financial pressure and wants to withdraw his dividends from his policy account for liquidity. After processing his request, he is able to view
his updated projected figures on the reprojections page to reflect his recent withdrawal ...
Day 1 Day x
Day 1 – Bob requests to withdraw dividends from his policy account.
Day X– HSBC Life operations team processes the dividend withdrawal request and issues the payment; re-projection charts and figures will be refreshed, showing a decreasing trend on
cash/surrender value.
Quick link on Personal
Internet Banking to
submit request for
withdrawal.
Dividend
account will
be deducted.
The surrender chart will
be adjusted to show a
drop in cash value since
dividends have already
been withdrawn.

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Case Study #6: Whole of Life
Jessica has a Whole of Life policy with HSBC Life and wants to check its non-guaranteed cash value. She prefers using her desktop so she logs onto the
Insurance Dashboard on Personal Internet Banking to find her policy details and value projections ...
1. Select the policy she wants to view from the insurance policy summary section.
2. On the policy details page, click Projected value of your policy to view the value on the re-projections page.
3. Under the section of projected values, projected total premiums paid, total projected cash benefit including guaranteed / non-guaranteed portions, and projected total benefit. are shown;
tabs for cash/surrender value and death benefit are also available for more policy details.
Non-guaranteed cash value (using desktop)
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4. Projected cash value details can also be viewed in a table format, which highlights the cash/surrender values across the years until the policy matures
5. On the Death benefit tab, guaranteed and non-guaranteed death benefit against total premiums paid are shown in both chart and table views.
Non-guaranteed cash value (using desktop)
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With a chart view,
growth of the non-
guaranteed portion of
the death benefit can be
easily viewed.
The table view provides
the exact figures across
the years at a glance.
Case Study #6: Whole of Life (cont’d)
Jessica has a Whole of Life policy with HSBC Life and wants to check its non-guaranteed cash value. She prefers using her desktop so she logs onto the
Insurance Dashboard on Personal Internet Banking to find her policy details and value projections ...

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Achievements
Having real-timeprojected values is really useful. I don’t
have to wait for a year until my policy anniversary.
I like how transparent this is. All the
information is laid out in front of me.
I think the charts are useful. I can see the
projected trend of my policy value.
I always lose or misplace my paper
statements/illustrations so I like this online platform.
Feedback from pilot testers Off to great start
Since its launch in mid-October, the number of visits to the
digital policy projections page have been increasing every
month as we gradually raise awareness via commercialisation
activities.
In January, the number of visits increased by 15% (vs
December) with the majority of the increase from mobile
visits. This shows that customers value having their policy
information in the palm of the hands as they keep track of
finances at their fingertips.
63% of total visits in January came via mobile, which proves
that our ‘mobile-first’ strategy is aligned with our customers’
needs and preferences.
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4,000
8,000
12,000
16,000
20,000
Nov Dec Jan
Visits
Mobile visits Online visits

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