Multiple Benefits! Hong Kong's Insurance Industry Welcomes New Opportunities

Going to Hong Kong to buy insurance was once one of the must-do things for mainland tourists visiting Hong Kong.

At its peak in 2016, mainland tourists contributed more than HK$70 billion in life policies to Hong Kong's insurance industry, accounting for 40% of the territory's individual business!

In the wake of the epidemic, Hong Kong and the Mainland sealed off the border, and the number of mainland tourists coming to Hong Kong dropped drastically. Lacking the added support of mainland customers coming to Hong Kong, the insurance industry in Hong Kong has been hard hit.

In 2023, with the clearance of Hong Kong's mainland, Hong Kong's insurance industry will also see new changes.

Recently, multiple favorable policies have been released.

Hong Kong government releases blueprint for the development of Hong Kong's insurance industry

Last month, the Hong Kong Government released a blueprint for the development of Hong Kong's insurance industry, giving a shot in the arm to the future of Hong Kong's insurance industry.

The Blueprint sets out a clear vision and mission to reinforce Hong Kong's role as a global risk management center and a well-established insurance hub. Its key elements are set out below:

01,To enhance Hong Kong's competitive edge as an international risk management center and deepen synergies with other financial sectors;

02In addition, we have implemented proactive policy measures and development-friendly legislation to help Hong Kong's insurance industry explore new markets;

03It also promotes the balanced development of long-term business and general business, and the development of Hong Kong as a fully-fledged insurance hub;

04In addition, we will capitalize on Hong Kong's unique advantages under "one country, two systems" and seize the opportunity presented by the "dual-cycle" strategy to facilitate the integration of the insurance industry into the overall situation of national development;

05It will release the social value of insurance and provide the general public with comprehensive risk management and control programs.

For the Guangdong-Hong Kong-Macao Greater Bay Area Hong Kong Insurance Service Center, the Chief Executive of the HKSAR, Mr. Lee Ka-chiu, said:

"We are making final preparations to set up insurance after-sales service centers in the Greater Bay Area, including Nansha and Qianhai, which will provide services such as enquiries on renewal of insurance policies, compensation and handling of complaints, etc., targeting at customers holding Hong Kong insurance policies.

"It is foreseeable that the establishment of a Hong Kong insurance after-sale service center in the Guangdong-Hong Kong-Macao Greater Bay Area to provide convenience to the many mainland residents who have purchased Hong Kong insurance will soon become a reality.

Advantages of Hong Kong Insurance

01,denomination currency

In line with Hong Kong's positioning as a global financial center, insurance in Hong Kong can be denominated in a variety of currencies, with Hong Kong dollars and US dollars being the majority, and claims are also settled mainly in Hong Kong dollars and US dollars.

In terms of asset allocation, it is already a consensus in asset planning to diversify the exchange rate risk of an allocation by holding different currencies.

02,Cross-border advantages

Hong Kong's capital can flow all over the world. Hong Kong is a cross-border financial center and a port of call only, where one can attack and retreat.

03,legal regulation

The financial system of Hong Kong is very mature and perfect, and it adopts the policy of "strict entry, lenient exit", that is, strict underwriting and lenient claims handling, which greatly protects the quality of insurance policies.

04,Product types and innovations

The Hong Kong insurance market is very competitive, with endless product innovations and different functions of various types of products. Combined with its product-specific structure and operational advantages, it can meet the market's diversified protection needs and realize multi-functional planning for assets.

05,Insurance program structure

Hong Kong insurance is very flexible in terms of the structure of the insurance program, allowing for a change of insured, as well as the setting up of a second policy holder and a second beneficiary, etc.

The diversity and flexibility of Hong Kong's insurance product structure provides more choices and possibilities when building a policy planning system based on customer needs.

06,Operational Advantages

Hong Kong insurance also has a number of advantages in terms of operation:

❶ Easy intergenerational coverage

❷ Very high level of exemption from medical examinations

❸ Lax financial underwriting

❹ Flexibility in receiving death benefits

As one of the freest and most open economies in the world, Hong Kong has gone through many ups and downs, and has always stood firm in the midst of all the trials and tribulations, and is still the shining jewel standing proudly in the East!

It is believed that with the normalization of exchanges between the two places, the future of Hong Kong's financial industry will be even brighter!