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Coronavirus pandemic
BusinessBanking & Finance

HSBC Life, AIA, BOC Life among Hong Kong insurers expanding online sales channels, medical products as pandemic causes worst slump on record

  • Developing digital sales and medical cover will go some way towards rebooting the Hong Kong insurance sector, HKFI chairman says
  • There has been a rise in demand for medical insurance products driven by the coronavirus crisis

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Coronavirus restrictions have put a huge dent in Hong Kong insurance sales. Photo: Sam Tsang
Enoch Yiu

Hong Kong insurance companies are developing more online sales channels and introducing more medical and retirement products to boost sales as the sector is poised for its worst slump on record, according to industry players.

Mainland Chinese, until now huge spenders on Hong Kong insurance policies, spent only HK$839 million (US$108 million) on them in the second quarter, down 85 per cent from the first three months. In the first half, their spending dropped 76 per cent year on year, according to Insurance Authority data.
Coronavirus travel restrictions have prevented mainlanders visiting Hong Kong to buy the policies.

“The full-year sales are not looking good. Cross-border traffic has not picked up. The government has tightened social distancing since July due to the third wave of infection. This has stopped the 100,000 salespeople from meeting clients to sell the policies in person,” said Eric Hui Kam-kwai, chairman of the Hong Kong Federation of Insurers (HKFI), the industry body for the sector.

Total new sales of life insurance in the first half-year dropped 34 per cent from a year earlier. If the trend continues, it will be the worst slump on record, bypassing 2008 when sales dropped 25 per cent during the year.

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