Hong Kong insurance policies regain sparkle among mainland investors as yuan weakens
- Prudential reports life and health insurance policies taken out by mainland clients jumped 23 per cent in the third quarter on year
- China’s yuan has fallen 10 per cent against the US dollar from its peak in March, sparking a rush to Hong Kong insurance as a hedging tool
A weaker yuan and the new high-speed rail link brought more mainlanders to Hong Kong to buy life and health policies in the last quarter, a trend that local insurers expected to continue over the following months.
British insurer Prudential, which has the largest insurance sales team in Hong Kong, saw income from the sale of life and health insurance policies to mainlanders increase by 23 per cent in the third quarter on year.
“Mainlanders have returned to the market. We have seen an increase over the past six months, particularly during the third quarter,” said Nic Nicandrou, chief executive of Asia at Prudential in Hong Kong on Wednesday.
Nicandrou said mainlanders mainly bought health and life policies to diversify risks.
“The high speed rail train started running in September and it has also brought in more mainlanders to visit Hong Kong and that also boost sales,” said Derek Yung, chief executive of Hong Kong at Prudential. “Looking ahead, with the opening of the Hong Kong-Zhuhai-Macau Bridge, the sales to the mainland travellers should continue to increase.”
Hong Kong insurer FWD said it had recorded a “slight increase” in mainland Chinese buying life policies in the past six months.
Analysts said mainlanders were buying Hong Kong insurance policies to hedge against the ongoing decline in the value of the yuan against the US dollar. The yuan has fallen 10 per cent against the US dollar from its peak in March.
