A growing number of professionals from mainland China’s finance and technology sectors are relocating to Hong Kong, drawn by opportunities in the city’s revitalised insurance industry.
These individuals, facing diminishing career prospects and wages in mainland China, are finding new avenues for income by selling insurance products in Hong Kong, where the industry has seen renewed growth following the pandemic, according to Bloomberg.
This trend comes as some insurance markets are expected to see robust growth in the next few years.
According to GlobalData, Hong Kong’s personal accident and health insurance market is expected to reach a compound annual growth rate (CAGR) of 7.4%, with gross written premiums increasing from HKD$21.4 billion (US$2.7 billion) in 2024 to HK$28.5 billion (US$3.6 billion) by 2028.
Meanwhile, the life insurance market is forecasted to experience a CAGR of 4.1% from 2024 to 2028, with direct written premiums jumping from HK$459.9 billion (US$58.7 billion) in 2024 to HK$539.1 billion (US$68.8 billion) in 2028.
Bloomberg’s report revealed that insurance companies – including AIA Group Ltd and Prudential Plc – have been actively recruiting these mainland professionals to market insurance plans to Chinese visitors. This segment, which had previously drawn attention from regulators, is experiencing a significant uptick as cross-border travel has resumed.
Since the beginning of 2023, mainland tourists have invested over HK$75 billion (US$9.6 billion) in Hong Kong insurance policies, despite ongoing regulatory efforts to curb unlicensed sales and corruption.
The insurance products, often denominated in US dollars or Hong Kong dollars, provide coverage for critical illness or term life and frequently include savings or investment components. These features are appealing to mainland buyers who seek to protect their wealth from a weakening yuan and capitalise on the higher interest rates available in Hong Kong.
For agents, the surge in sales has proven to be highly profitable. Top earners in the industry have reported annual incomes exceeding HK$10 million, driven by commissions and bonuses.
Since insurers in Hong Kong cannot directly market their products in mainland China, agents often leverage personal networks to attract clients who travel to Hong Kong to finalise transactions. Mainland Chinese buyers typically use Hong Kong bank accounts or international credit cards to purchase policies, with China’s annual foreign exchange limit of US$50,000 facilitating these transactions.
In response to emigration concerns that threatened Hong Kong’s role as an international financial hub, the city’s government relaxed its visa requirements in late 2022. The Top Talent Pass Scheme, which provides two-year visas to qualified individuals, and the Quality Migrant Admission Scheme, which does not require applicants to secure jobs before arriving, have drawn approximately 200,000 new arrivals, primarily from mainland China.
At a recent AIA sales meeting, about 40 participants, many of whom had recently secured visas through these programs, gathered to discuss sales strategies. These professionals, ranging from their 20s to 50s, are part of a broader trend of mainland Chinese shifting into Hong Kong’s insurance sector as they seek more stable and lucrative career options.
However, the path to success is not guaranteed for all. Some entrants have encountered difficulties with the stringent requirements imposed by both insurers and immigration authorities.
For instance, one agent was denied a sign-on bonus after failing to complete mandatory training, leading to the termination of her contract. This case highlights the increased scrutiny from Hong Kong’s immigration office, which now requires insurance agents seeking visa renewals to provide detailed commission reports and demonstrate that their sales are to clients, not self-purchases.
Despite these challenges, the demand for Hong Kong insurance products among mainland visitors continues to grow. Companies like HSBC Life and Chow Tai Fook Life Insurance Co (CTF Life) have reported increased sales to mainland clients and are expanding their agent networks to meet this rising demand.
“In the long run, we believe that insurance offerings in Hong Kong will continue to attract customers from Mainland China,” said Man Kit Ip, chief executive officer of CTF Life, the new brand identity of FTLife Insurance Company Limited.
