Hong Kong life insurance sales up 58% in first half but tax crackdown threatens momentum
Life insurance sales in Hong Kong rose 58 per cent in the first half of this year to another record high as affluent mainland and overseas customers continued to buy policies in the city for wealth transfer, protection and medical needs. It was the fourth consecutive year in which first half sales hit a record high. The industry wrote HK$275.16 billion (US$35.3 billion) worth of new life…
In the first half of the year, life insurance sales in Hong Kong surged by 58 percent, reaching a new record high, according to data released by the Insurance Authority. This growth was fueled by affluent mainland and overseas customers purchasing policies for wealth transfer, protection, and medical needs. The industry wrote a record HK$275.16 billion (US$35.3 billion) worth of new life insurance policies in the first half, compared to HK$173.7 billion a year earlier.
However, a tax crackdown from the Chinese government may threaten this positive momentum. Beijing has introduced a strict 20 percent personal income tax on mainland residents' offshore trusts and overseas investment gains, as well as other measures to curb capital flight. These actions have effectively choked off the outflow of unapproved private wealth.
Kenrick Chung, CEO of Equator Asset Protection, warned that these tax measures could deter some mainland visitors from buying insurance policies in Hong Kong, as they may see reduced returns. Meanwhile, Wilton Kee, CEO of Manulife Hong Kong and Macau, emphasized Hong Kong's role as an international insurance and wealth management hub, noting the diverse needs of customers across protection, health, retirement, and wealth planning.
Manulife has expanded its medical specialist network and formed a partnership with Ant Health to develop healthcare and wellness services. HSBC Life, with a market share of 24 percent, remained the leading player in the life insurance market for four consecutive years. HSBC Life's CEO, Daisy Tsang, highlighted the strong growth in insurance sales driven by demand from both locals and visitors.
She expects offshore customers to become an increasingly important source of growth, supported by Asia's demographic trends, which include rising wealth and an aging population.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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