Hong Kong insurers to weather Beijing’s tax shift with 8-10% premium growth: S&P
Hong Kong’s life insurers could still see annual premium growth of 8 to 10 per cent over the next two years, despite a recent regulatory shift stemming from Beijing’s overseas taxation rules, according to credit-rating agency S&P Global Ratings. Resilient demand for overseas diversification should prevent a lasting downturn, the agency said, in the latest vote of confidence in the city’s thriving…
Hong Kong's life insurers are expected to maintain annual premium growth of 8% to 10% over the next two years, despite a regulatory shift due to Beijing's overseas taxation rules, according to S&P Global Ratings. Despite a temporary slowdown in sales to mainland customers, the agency does not anticipate a lasting decline in business.
The growing demand for multi-currency asset diversification, offshore wealth management, and healthcare and protection services, coupled with Hong Kong's aging population, are expected to sustain the sector's growth. The base-case projection of 8 to 10% growth represents a decrease from the 33.7% jump in premiums last year. However, significant downside risks could arise if mainland business drops off sharply.
Insurers with greater exposure to mainland visitors may face longer sales processes and higher compliance costs. Local banks, with their diversified wealth platforms, are relatively well-positioned to navigate the changing regulatory landscape.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
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