Hong Kong life insurance sales hit record, driven by buyers from mainland China
Sales surge 12 per cent to US$14.9 billion as mainland visitors continue buying spree to chase better returns and hedge the yuan
Life insurance sales in Hong Kong surged by 12 per cent in the first half to a record high as a buying spree continued among mainland visitors and wealthy individuals in Hong Kong. A world record policy also helped.
New life insurance sales rose to HK$115.9 billion (US$14.9 billion) from the HK$103 billion reported in the same period last year, which itself was a record, according to the Insurance Authority.
The level is the highest since the authority was established in 2016 and 16 per cent higher than the total of HK$99.9 billion in the first half of 2019, before the Covid-19 pandemic.
Sales of policies to mainland visitors in the first half amounted to HK$29.7 billion, down 7 per cent from HK$31.9 billion a year earlier. Still, that is higher than the pre-Covid level, when mainlanders bought HK$26.3 billion of life and medical policies in the first half of 2019.
Mainland visitors accounted for 26 per cent of the total life and medical premiums in the first half.
Besides mainland visitors, the strong growth was also due to HSBC Life issuing the world’s most valuable life insurance policy at the beginning of this year. The policy, with a protection value of US$250 million, was certified by Guinness World Records in February.
Though the premium was not disclosed, the sale was a major boost to total sales of new life insurance and helped HSBC Life maintain its position as the top life insurer in Hong Kong in terms of new sales in the first half.
