Hong Kong’s insurance sales to mainland Chinese policy holders plunge as daily images of mayhem and protest rallies deter arrivals
- Sales to mainland visitors dropped by between 10 per cent and 20 per cent in the last two months because Hong Kong law requires policy holders to present themselves in person to agents before contracts can be sealed
- At the peak, mainland Chinese bought 39 per cent of all new insurance policies sold in Hong Kong in 2016
Hong Kong’s insurance sales have taken a hit in the past two months, as almost daily street protests – particularly in districts frequented by mainland Chinese visitors such as Tsim Sha Tsui and Mong Kok – have kept them away.
Policy sales have fallen by between 10 per cent and 20 per cent since June, according to Altruist Financial Group, which provides financial planning services in Hong Kong.
“Insurance sales are down with locals buying less, and mainland visitors are also buying less,” said Altruist’s chief operating officer Glenn Turner. “People are using their mobile phones to track all the things going on in the protests and have not paid attention to insurance cover.”
The decline is bad news for Hong Kong’s 70 life insurers and their combined sales force of 90,000 agents, especially those niche companies whose entire business model is aimed at selling various packages of health, medical or retirement plans to Chinese customers.
At their peak in 2016, Chinese customers bought 39 per cent of all new insurance policies sold in Hong Kong, as they sought alternatives to hedge against a deteriorating yuan.