Insurance Will Propel Hong Kong’s AI Ambition

At the SCMP China Conference on July 7, Chief Executive John Lee emphasized artificial intelligence (AI) as a cornerstone of Hong Kong's strategy to become a leading global center for innovation and technology. In his keynote address, Lee referred to the city's inaugural five-year development plan, aligned with China's National 15th Five-Year Plan, which will guide Hong Kong's expansion and deepen its connection with the mainland.

The trajectory is evident: Hong Kong is well-positioned to enhance its status as an international financial hub while fostering AI integration. Substantial public funding is already in motion, spanning new AI research facilities to initiatives aimed at attracting talent and expediting adoption. Despite Hong Kong's rapidly aging populace, the Greater Bay Area is witnessing heightened integration, with increased movement of people and capital across borders.

For insurers, adapting to these transformations necessitates quicker decision-making, improved data utilization, and more tailored services. AI has the potential to facilitate this, but only if insurers commit to building expertise and responsibly implementing the technology. This represents a critical juncture for Hong Kong and the insurance sector.

The government is demonstrating its commitment through tangible actions, such as establishing the Artificial Intelligence Supercomputing Centre at Cyberport, a HK$3 billion AI subsidy program, the Hong Kong Artificial Intelligence Research and Development Institute (set to launch later this year), and a new Committee on AI+ and Industry Development Strategy, which convened for the first time in June.

Hong Kong can emerge as a global benchmark for how the insurance industry fosters health and financial security in a longevity economy. As a Core Participating Insurer in the Insurance Authority’s AI Cohort Programme, Manulife is contributing to this vision by concentrating AI expertise in Hong Kong, advancing AI capabilities across the industry, and disseminating insights to regulators and peers.

Internally, Manulife leverages AI through a bilingual assistant offering 24/7 customer support, AI SalesPro, which analyzes data to enable agents to focus more on customer advice rather than research, and another AI-driven tool that streamlines underwriting and new business inquiries, accelerating processes and decision-making. By 2046, over a third of Hong Kong's population will be 65 or older, according to government projections.

This demographic shift will intensify the demand for accessible healthcare and robust financial planning to sustain extended retirements. Recent surveys indicate that approximately 90% of Hong Kong residents desire to maintain independence for as long as feasible, rather than depending on familial assistance. On average, they anticipate allocating 71% of their assets to fund their personal future requirements.

Independence, for both aging parents and their children, is increasingly a defining objective. Insurance plays a crucial role in supporting longer, more autonomous lives. As one of Hong Kong's premier insurers, Manulife is adapting to these demographic changes and evolving expectations. AI enhances this transition by expediting underwriting and claims processing, delivering more personalized health and retirement insights, and simplifying decision-making.

The objective is clear: reduce complexities and facilitate long-term planning. The tangible benefits for customers across the Greater Bay Area include a heightened sense of security and enhanced quality of life. Manulife Hong Kong, established for over a century, remains Hong Kong's largest MPF provider, with one in three residents as clients.

These recent advancements are viewed as a pivotal chapter in the company's history. While AI will not supplant the core principles of insurance, such as trust, expert guidance, and long-term commitment, it can augment these values. As Hong Kong advances its AI ambitions and strengthens ties with the Greater Bay Area, insurers bear the responsibility of raising industry standards by deploying technology to genuinely enhance customer experiences.

If achieved effectively, AI will not only modernize the insurance industry but also empower individuals to plan confidently for longer lives, navigate extended lifespans, secure financial stability, and solidify Hong Kong's position as a premier financial center and innovation hub. Success will be measured not solely by the number of years lived but by the quality of those years.