Business at a Premium
New Yorker Charles (Chuck) Monat arrived in Asia in 1970 via Thailand, where he had served in the U.S. Army.
In Bangkok, Mr. Monat met his mentor Reeve Hankins who ran insurance broker Rolibec International. Mr. Hankins hired him off the street to sell insurance to American expatriates living in Hong Kong.
The 26-year-old arrived in a city where he knew nobody. A year later, sensing immense opportunities in "China's Manhattan," he set up Charles Monat Associates Ltd.
Fast forward 35 years later, and Charles Monat Associates Ltd. is one of Asia's premier consultancies for wealth transfer and liquidity planning, and Hong Kong's largest independent provider of life insurance.
"I set up Charles Monat Associates Ltd. in 200 square feet of office space in Central with just me and another staff member," commented Mr. Monat.
More than three decades later, Mr. Monat is still in Central, but his company now occupies 4,250 square feet of office space and retains staff in Hong Kong and Singapore.
"Hong Kong has been good to me; in fact, the city is ideal for my kind of business," said Mr. Monat.
"As a worldwide financial center, the Hong Kong government permits insurance brokers like me to source from any insurers globally and sell to anyone interested in buying. I can't think of many places in the world where the government is so supportive and friendly."
When he first started, Mr. Monat was selling insurance mostly to Americans. Today, his roster of 8,000 clients spans the region.
Tax-friendly environment
In many cities around the world, estate taxes can be crippling -- draining the resources of affluent families. In Hong Kong, estate duties have been abolished since 2005, which makes the city more enticing.
Mr. Monat noted that increasingly it had become less of a taboo to talk about death, especially within the Chinese community. As such, he is seeing more affluent clients and businesses seeking advice on how to manage their estate liquidity to protect their families and businesses.
Mr. Monat said that more people in Hong Kong are buying life insurance and in larger amounts. He noted that over the years the products have become more sophisticated and the numbers and sizes of policies have grown substantially. The crowded field creates a buzz, raises the interest level and in turn, produces more capacity on underwriting.
Mr. Monat attributed his success to Hong Kong people's work ethic. "I feel very lucky to be in a city where there is a ready pool of talent, where the people are decent and industrious and work until the job gets done. Hong Kong people have big hearts and deep pockets and they are always ready to donate to good causes as well."
As to the future of Charles Monat Associates Ltd., Mr. Monat said: "I have hired a lot of top caliber people, including some former bankers. Many have been with me over ten years. That is part of my succession plan. When I check out, the company will continue to run smoothly."
Charles Monat Associates: http://www.charlesmonatassociates.com/
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