A third of international insurers may downsize their Hong Kong operations as staff head for exit amid tough Covid-19 restrictions, survey finds

Big insurers consider relocating global and regional teams as travel restrictions make it impossible to recruit staff to replace those heading abroad

This could undermine Hong Kong’s status as an international financial centre, says chairman of the Hong Kong Federation of Insurers

Reading Time:3 minutes

The shortage of talent has been exacerbated by the city’s strict Covid-19 policies. Photo: Nora Tam

Published: 8:30am, 3 Mar 2022Updated: 5:24pm, 3 Mar 2022

Almost a third of international insurance companies in Hong Kong are considering downsizing their operations because of a shortage of talent exacerbated by the city’s strict Covid-19 policies, according to a survey by the Hong Kong Federation of Insurers (HKFI).

Some 30 per cent of respondents said they are thinking about relocating their global and regional teams, leaving just staff focused on the Hong Kong market.

The insurance sector is the latest to voice concerns about the “brain drain” problem, after banks, investment firms and regulators expressed similar worries in recent months.

Many financial firms have lost staff who have migrated to other cities, and found it hard to recruit replacements from overseas because of the tough quarantine and travel restrictions imposed by the Hong Kong government over the past two years.

Over 80 per cent of those surveyed said they have a high turnover of staff in their actuary, IT, finance and claims departments. The HKFI surveyed 33 insurers last month, with a combined market share of 80 per cent. They include the biggest players in the city, though the HKFI did not name them.

Hong Kong, one of the largest insurance centres worldwide, has 160 insurance companies that employ some 130,000 sales agents and 30,000 other staff. HSBC Life, AIA, Prudential, Manulife are some of the biggest insurers in in the city.