Insurers Prudential, Manulife seal tech alliances amid Beijing’s tightened tax rules

Several Hong Kong insurance firms, including Prudential, Manulife and BOC Life, are forming alliances with technology companies to adapt to Beijing's stricter tax rules. Prudential has partnered with Alibaba Cloud to create an AI underwriter that can analyze a client's financial situation, medical history, occupation and residential status to provide preliminary decisions in minutes, rather than days, according to Prudential's CEO Lawrence Lam.

Alibaba Cloud's Ethan Yuan Zhiming explained that the collaboration combines Prudential's insurance expertise with Alibaba Cloud's AI capabilities to deliver faster and better service. In June, Prudential also signed a strategic partnership with Manulife Hong Kong to develop AI solutions for improving customer experience and operational efficiency.

Manulife and AHA Healthcare Technology have also signed a memorandum of understanding to explore collaboration in health management and cross-border healthcare services and insurance technology, reflecting a growing trend as more Hongkongers seek affordable medical treatment in mainland China. BOC Life recently teamed up with Deloitte Private to cater to high-net-worth individuals and families who require succession planning and wealth advisory services.

These partnerships come amid Beijing's new tax rules on cross-border investments, with mainland Chinese visitors accounting for about a quarter of all life insurance sales in Hong Kong. Beijing has also imposed a 20% levy on gains from offshore insurance policies in several major mainland cities. Prudential's Lam emphasized that insurers should embrace AI technology to stay competitive, stating that those who best utilize AI will be the winners in the evolving insurance landscape.