“Hong Kong stockbrokers would need to review their systems to make sure their staff can work from home during the typhoons when the market will continue to trade in September,” he said.
“Still, it is expected some brokerage staff may still need to go to the office during the typhoons. Many brokerage firms are now reviewing their insurance coverage to make sure their staff can get sufficient insurance protection to prepare for stock market trading during a typhoon.”
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Hong Kong flooded by ‘once-in-a-century’ rainstorm
Hong Kong flooded by ‘once-in-a-century’ rainstorm
The insurance sector has a wide range of products that can cover the stockbrokers in case their staff need to go to work during a typhoon, said Chan Kin-por, a veteran insurer who is also the city’s lawmaker for the sector.
This type of policy covers medical expenses, loss of wages and payment to a worker’s families in case of death.
“The employees’ compensation policies bought by all brokers already cover the situation when their staff travel between their homes and their workplaces, and this covers typhoons or black rain,” Chan said.
He said stockbrokers have the option of buying additional medical insurance or personal accident coverage for staff if they need to work during typhoons.
“It should be noted that the employee’s compensation may not cover the situation if the employees need to go to locations other than their offices during the typhoons,” he added.
“The brokerage firms may consider buying more medical insurance or personal accident insurance to offer better protection for their staff to work during the typhoons, as these policies provide a more comprehensive and higher amount of coverage to the staff who may need to travel to work during the storms or heavy rains.”
Typhoons and rainstorms are among the highest-paying events for the insurance industry in Hong Kong, but not all companies have sufficient coverage.
The local insurance industry received HK$1.9 billion (US$240 million) of claims related to damage caused by a black rainstorm and Typhoon Saola in September last year. Claims related to property damage made up 86 per cent of them, while 9 per cent arose from motor insurance, according to the Insurance Authority.
Only about 30 per cent of car owners had comprehensive insurance coverage, while the rest had policies that did not protect against flooding, some industry executives said.
