Hongkongers driving to Greater Bay Area cities to soon need only one insurance policy
- One policy a ‘great example of how insurance can remove frictional costs and stimulate economic activity’, says chairman of local insurers’ industry body
- HKFI’s Moncreiffe also wants to see investment-linked insurance policies being sold under the Wealth Management Connect
The new arrangement represents the unilateral recognition of private Hong Kong cars entering Guangdong province through the Hong Kong-Zhuhai-Macau Bridge with policies bought from a local insurer and whose coverage will extend to third-party liability in Hong Kong and the mainland. Unilateral recognition with Macau is yet to be finalised.
“We hope to see this type of unilateral recognition policy extended to medical insurance, property insurance or other types of life protection in the Greater Bay Area,” Moncreiffe said.
“This is definitely good news. At present, I need to buy three policies, which is time-consuming and expensive. I strongly believe in the Greater Bay Area and would like to see more measures that make it easier for us to travel and work across the border,” he said.
“Many investment-linked products are low risk and they are suitable for Bay Area investors looking to diversify their portfolios,” he said. “In the UK and other markets, investment-linked policies are mainstream retirement protection products, but represent a small portion of sales in Hong Kong. We want to see Hong Kong catch up on this international trend.”
In the first half of 2019, for example, only 6 per cent of life insurance premiums in Hong Kong were investment-linked policies, compared with 17 per cent in Singapore, 39 per cent in the US and 69 per cent in the UK, according to data compiled by the HKFI.