Hong Kong: Beauty salons get insurance
Source: Asia Insurance Review | Jan 2018
A beauty industry group has made a deal with an insurer to provide coverage for small and medium-sized beauty parlours as long as they are accredited by the Hong Kong Beauty Industry Union.
The insurance scheme, initiated by the union, aims to improve the service quality of the sector, reported South China Morning Post. The union currently has 2,000 to 3,000 members, who are all beauty sector practitioners.
The Customs and Excise Department received 411 reports against the beauty services industry over suspected unfair trade practices in the first 10 months of the year.
“There has not been any insurance scheme for beauty parlours before. With this scheme, consumers’ rights would be protected if they are injured during a procedure,” said Ms Joyce Tsang Yue, founding chairwoman of the union.
The insurance plan, provided by Chubb, targets beauty parlours that earn less than HK$50 million (US$6.4 million) a year. Premiums payable by participating parlours range from around HK$10,000 to HK$50,000, depending on the insured amount. Under the plan, participating parlours are insured for at least HK$3 million.
Accreditation will be assessed by the Hong Kong Productivity Council, which would look into areas such as devices, services and management of beauty parlours. A