HSBC Holdings expects a lower average insurance premium from investment-linked products this year as investors turn away from the weak stock market and seek safer insurance protection, said the head of its Asia-Pacific wealth management business.
The bank noted a renewed interest in basic protection from customers, according to a survey of Hong Kong's insurance market.
The survey, which covered 1,390 respondents aged between 18 and 64, found consumers paid an average annual premium of HK$16,890 from investment-linked policies, down from HK$17,985 a year earlier.
The poll was carried out from March to May last year, well before the collapse of Lehman Brothers that marked the start of the global financial crisis.
'As the capital market becomes more volatile, the figure may be much lower in the second half and this year,' said Bruno Lee, HSBC's head of liabilities business and wealth management.
He said lower interest rates, market volatility and slowing economic growth were likely to result in a potential gap in family protection as net worth declines and a need for more basic and affordable protection plans.
