XChange TEC.INC, a China-headquartered technology-driven insurance services provider, has acquired a licensed insurance brokerage firm in Hong Kong as part of its strategy to expand operations across Asia and strengthen its foothold in key financial hubs.
The acquisition gives XChange TEC direct access to Hong Kong’s regulated insurance market, enabling the firm to offer new insurance products aimed at high-net-worth individuals and cross-border clients from mainland China and other international jurisdictions.
In a statement, XChange TEC.INC said the acquisition reflects the firm’s ongoing focus on regional expansion.
“Hong Kong’s insurance sector has demonstrated robust growth driven by rising demand from mainland Chinese clients and expatriates seeking international-standard wealth preservation tools. As a gateway linking global capital flows, Hong Kong offers unparalleled opportunities to serve high net-worth individuals, multinational corporations, and cross-border investors,” it said.
It added that securing a licensed presence in Hong Kong allows it to develop and distribute insurance products designed to address the evolving financial and protection needs of clients in Asia’s mature and emerging markets.
“The company’s entry into [the] Hong Kong market aligns with the vision to become a one-stop hub for clients seeking sophisticated risk management and wealth enhancement solutions,” the firm said.
The transaction comes amid a notable shift in Hong Kong’s insurance sector, which has experienced renewed momentum following the easing of pandemic-related restrictions.
Financial and tech professionals from mainland China have increasingly moved to the city, attracted by new income opportunities in insurance distribution. Many are entering the field through partnerships with firms such as AIA Group and Prudential, promoting policies to mainland tourists visiting Hong Kong, according to a Bloomberg report.
With mainland job markets tightening, these professionals are tapping into growing demand for wealth protection solutions among Chinese nationals. Bloomberg reported in 2024 that sales of insurance policies to mainland clients had reached over HK$75 billion since early 2023. These policies are typically denominated in foreign currencies and include life, critical illness, and savings components.
Data from the Hong Kong Insurance Authority showed that for the first nine months of 2024, total gross premiums amounted to HK$480.8 billion.
New office premiums for long-term business, excluding retirement products, rose 15.7% year-on-year to HK$169.6 billion, led by non-linked individual policies valued at HK$162 billion. Linked policies, however, declined to HK$7.2 billion.
Mainland Chinese policyholders contributed HK$46.6 billion to the individual new office premium segment, accounting for more than a quarter of the total. Whole life, critical illness, and medical plans comprised the bulk of these purchases.
In-force premium revenue for long-term insurance grew by 8.3% to HK$405.8 billion, while total claims and benefits paid increased 12.7% to HK$270.2 billion.
General insurance results were also positive, with gross premiums reaching HK$75 billion and net premiums at HK$51.7 billion. The segment reported HK$6.7 billion in operating profit and HK$2.2 billion in underwriting gains. Key business lines included medical, liability, and property insurance.
Hong Kong’s evolving regulatory landscape and role as a financial intermediary continue to attract insurers and financial services providers seeking cross-border growth. The government’s relaxed visa policies, such as the Top Talent Pass Scheme and the Quality Migrant Admission Scheme, have supported an influx of talent from the mainland.
