Hong Kong insurers target young and the elderly as protests deter mainland Chinese from buying insurance products in the city

Insurers entering the Hong Kong market are having to seek out younger and more elderly customers as the anti-government protests have led to a sharp fall in mainlanders visiting the city to buy life and medical insurance products.

Insurance sales to mainland Chinese customers have dropped by an estimated 30 per cent during the increasingly violent pro-democracy rallies that have plagued the city since early June, according to industry players. Regulations require mainlanders must be in Hong Kong in person to buy insurance products.

The sales have been a hugely important source of income for the city’s insurers, so they are desperate to tap new types of customer to plug the gap.

Well Link Life Insurance Company, which received a licence in April and started to sell products in August, is focusing on customers aged 50 and over, offering them retirement and medical products. It primarily aims its medical insurance at those aged between 55 and 75, while it offers a number of savings products for retirement needs.

“We would like to serve mainland customers. However, as fewer mainlanders are coming now amid the social unrest, we are first focusing on the Hong Kong customers, particularly the grey-haired group aged above 50,” said Thomas Lee Mun-nang, chief executive of Well Link.

“There are 3.1 million people in Hong Kong who are 50 years old or above, while this will increase to 4.25 million in 10 years, which will be more than half of the Hong Kong population at about 7.5 million now. The grey-haired customers can bring in huge business opportunities for us.

“There are not many insurance companies eyeing this age group, which could give us opportunities to capture these customers.”