Insurance

The first ESG Savings Plan from a Hong Kong Insurer is launched

After leading the market in recent years with their innovative range of Savings plans in “Venus II”, “Vision” and “Victory”, Sun Life Hong Kong has launched a new savings plan to capture and change the Savings Plan industry for Insurers.

Stellar is the first ESG-focused savings plan* in the market that focuses on investing in assets that meet global benchmarks of sustainability across environmental, social, and governance (ESG) categories.

 

Chief Product Officer Robin Lee states that “Stellar is a participating insurance plan that focuses on investing in assets that excel in ESG qualities, with a vision to build client’s wealth that makes a positive impact and ensures a legacy for future generations. While accumulating wealth for client’s and their family in pursuit of better well-being and financial security, this plan also serves as an excellent legacy planning tool that enables long-term savings to pass across multiple generations.”

 

Lee also says that “Stellar comes with 2 years of premium payment (or PrePay), that enables you to enjoy potential long-term wealth growth without committing to long-term payments. What’s more, Stellar comes with flexible Change of Coverage and Change of Insured options shall you need it, allowing you to transfer your legacy hassle free”

Highlights of ESG investment strategies for Stellar

In tune with Sun Life’s unwavering commitment to a sustainable global environment, Stellar supports allocation to sustainable investments including, but are not limited to:

  • Green bonds
  • Renewable energy
  • Energy transition
  • Sustainable buildings
  • Clean transportation
  • Water and Waste management
  • Social Infrastructure projects
     

Speaking with David Varley, Chief Partnership Officer – Brokerage of Sun Life Hong Kong, he states that “Stellar is the 1st ESG-focused savings plan* in the Hong Kong market that actively integrates ESG concepts into its own investment strategies.  We also have an exciting Stellar Client Offers (subject to terms and conditions) that aligns with our ESG proposition:

  1. A 3% premium rebate on your Annualized First Year Premium within promotion period
  2. A 5% p.a. guaranteed prepayment interest rate for using our electronic services (i.e., eContract and eAdvice) and prepay all your future premiums upon issuance of Stellar policy within promotion period

 

Varley continues: "Stellar is a product that will give client’s a mix of guaranteed returns and also some non-guaranteed returns, and most importantly, is supported by an investment strategy that is embedded within an ESG framework developed proprietarily by Sun Life or by recognized third-party ESG data providers., with a projected total  IRR of up to 7%. We are excited to offer Stellar and see huge opportunity for sales and distribution as this is a product that clients have asked for.”

 

* This is based on market conditions as of April 12, 2022 and comparison among other savings plans for new Composite and Long Term Businesses as defined by the Insurance Authority in the Register of Authorized Insurers.