US Dollars and Weak Yuan Push Life Insurance Growth in Hong Kong with Capital Investment Entrant Scheme
US Dollars and Weak Yuan Influence on Life Insurance Growth
Life insurance sales in Hong Kong surged by 12 per cent in the first half to a record high, fueled largely by investing mainland visitors. New life insurance sales rose to HK$115.9 billion (US$14.9 billion) from HK$103 billion a year earlier, establishing a new benchmark since the establishment of the Insurance Authority in 2016.
Influence of Mainland Visitors
- First-half sales to mainland visitors totaled HK$29.7 billion, 7 per cent lower than previous year but above pre-Covid levels.
- Mainland clients represented 26 per cent of the life and medical premiums in Hong Kong.
Significant Contributions and Innovations
HSBC Life's issuance of the world's most valuable life insurance policy at US$250 million, certified by Guinness World Records, contributed greatly to total sales.
Capital Investment Entrant Scheme Enhances Wealth Management Opportunities
- New tax incentives promote family offices, attracting high-net-worth clients.
- The Greater Bay Area's cross-border mobility generates significant innovation in insurance products.
Market Insights and Growth Outlook
As 21 million travelers visited Hong Kong in the first half, up 64 per cent year-on-year, local insurers have shown resilience. Industry leaders like Manulife express optimism driven by visitor increases and government initiatives aimed at invigorating the economy and tourism.
The rise in travel also elevated demand for travel insurance, with new premiums increasing by 12.5 per cent to HK$11.7 billion.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.