Chinese tourists buy 16pc of life insurance sold in Hong Kong
Steady increase in spending on products prompts industry players to raise concern over risks from closing transactions during short trips
More mainland tourists are buying insurance in Hong Kong - spending HK$15 billion last year - a trend industry insiders fear could lead to complaints if sales are not handled carefully.
Hong Kong insurance agents are barred from selling any products on the mainland, but mainlanders can buy policies from Hong Kong agents or banks when they visit the city.
Chan Kin-por, the legislator for the insurance industry, said mainlanders had become an important source of business for Hong Kong-based life insurance companies.
"They don't just come here for cosmetic products or jewellery but also to buy life insurance products. This is because the insurance products offered here have more features and higher returns compared with what are on offer across the border," Chan said.
Savings-type life insurance policies in Hong Kong can usually deliver 4 to 5 per cent annual returns, higher than the 1 to 2 per cent offered by mainland policies.