Hong Kong’s health insurance and pension saving ‘tax deducting schemes’ find traction in the first two weeks since launch
- Major insurers record brisk sales in the new tax-deductible schemes since launch on April 1
- Fitch and Moody’s believe the tax schemes will boost growth of insurance companies in Hong Kong
Two government programmes to encourage individuals to buy private health insurance and save more for retirement have been well received in the first two weeks since launch, providing what could be a long term growth engine for local insurance companies, according to industry players and credit rating agencies.
Several major insurers including Prudential, AXA, AIA, Manulife and HSBC Life all told the Post that they have recorded strong sales in the new tax-deductible schemes over the first two weeks.
“With the increased awareness on medical protection needs, customers are proactively reaching out to our financial consultants to inquire about the Voluntary Health Insurance Scheme (VHIS),” Priscilla Ng, chief customer and marketing officer of Prudential, said.
Over 80 per cent of Prudential’s customers who bought the VHIS schemes are also buying the flexible plan which has more coverage but charge a higher premium than the standard plan, she said.
“Prudential’s tax deductible deferred annuity scheme saw strong growth in new business during the past two weeks, which has increased by more than 60 per cent from the prior month,” Ng said.
“The government initiative to offer tax concessions has also helped to encourage the acceptance of annuity products.”