Hong Kong life insurance coverage gross sales hit document, pushed by consumers from mainland China – Cyber Tech

Gross sales of insurance policies to mainland guests within the first half amounted to HK$29.7 billion, down 7 per cent from HK$31.9 billion a yr earlier. Nonetheless, that’s greater than the pre-Covid stage, when mainlanders purchased HK$26.3 billion of life and medical insurance policies within the first half of 2019.

Mainland guests accounted for 26 per cent of the whole life and medical premiums within the first half.

Moreover mainland guests, the robust development was additionally as a result of HSBC Life issuing the world’s Most worthy life insurance coverage coverage in the beginning of this yr. The coverage, with a safety worth of US$250 million, was licensed by Guinness World Information in February.

Although the premium was not disclosed, the sale was a significant increase to whole gross sales of latest life insurance coverage and helped HSBC Life keep its place as the highest life insurer in Hong Kong by way of new gross sales within the first half.

“I’m excited to witness the rising offshore demand for high-quality financial savings options” stated Daisy Tsang, CEO of HSBC Life Hong Kong and Macau. “As a key worldwide monetary centre, Hong Kong has seen a surge in demand from offshore purchasers looking for premium financial savings and wealth-management options.”

Tax incentives the Hong Kong authorities created in Could final yr to encourage rich folks to arrange household workplaces within the metropolis, together with the introduction of the brand new Capital Funding Entrant Scheme in Could, have made Hong Kong a super hub for attracting high-net-worth purchasers to purchase jumbo insurance policies for wealth administration and property planning, she stated.

“The growing cross-border mobility between Hong Kong and different Better Bay Space cities is creating vital alternatives for innovation within the insurance coverage sector,” Tsang added.

Different main gamers, comparable to AIA Group and Manulife, additionally reported good gross sales development within the first half.

Mainland clients like to purchase insurance coverage insurance policies in Hong Kong because the merchandise are bought in US {dollars} or Hong Kong {dollars}. This helps hedge in opposition to a falling yuan, which has weakened 13 per cent in opposition to the US greenback over the previous two years.

Within the first half, 21 million travellers visited Hong Kong, a rise of 64 per cent from a yr earlier, in accordance with knowledge revealed by the Hong Kong Tourism Board. Two-thirds had been from the mainland.

Mainland Chinese language vacationers final yr spent HK$59 billion on life and medical insurance coverage insurance policies in Hong Kong, greater than the extent recorded in 2017 and 2019 of HK$43 billion to HK$51 billion, respectively.

“As Hong Kong continues its financial development and welcomes an growing variety of guests, we witness our business’s resilience and sturdy growth within the first half of the yr,” stated Patrick Graham, CEO of Manulife Hong Kong and Macau. “We’re delighted to have contributed to this momentum, attaining robust development throughout a number of key efficiency metrics.

“Wanting in the direction of the second half, we keep a cautiously optimistic outlook on development prospects pushed by a gentle improve in customer numbers and the federal government’s initiatives to invigorate the native economic system and tourism.”

The rise within the variety of Hongkongers travelling exterior of town additionally drove up demand for journey insurance coverage, sending new premiums for accident and medical health insurance up 22 per cent to HK$11.7 billion within the first half, the Insurance coverage Authority’s knowledge confirmed.