White Collar | Proposed regulator needs to consider interests of mainlanders who buy insurance policies in HK

Mainlanders used to visit Hong Kong to shop for luxury handbags, jewellery and infant formula. They’ve now added insurance to their shopping list.

That’s sparked new regulatory concerns and is something lawmakers need to pay attention to as they discuss legislation that will establish an insurance authority.

The good news is that mainlanders spent HK$16.9 billion buying life insurance policies in Hong Kong in the first nine months of this year, according to government statistics released on Friday.

That surpassed the HK$15 billion they spent on buying such policies here in the whole of last year.

Mainlanders accounted for 20.3 per cent of new life insurance sales in Hong Kong in the first three quarters of this year. That compares with 16 per cent last year, 13 per cent in 2012, 9 per cent in 2011 and 4 per cent in 2010.

The bad news is an increase in regulatory concerns. Why are so many mainlanders buying insurance policies here and why has the growth rate been so strong?