Mainland professionals flock to Hong Kong’s resurgent insurance sector

A growing number of professionals from mainland China’s finance and technology sectors are moving to Hong Kong, attracted by the opportunities offered by the city’s vibrant insurance industry.

Bloomberg reports that these individuals, grappling with diminishing career prospects and lower wages in mainland China, are looking for new ways to earn money by selling insurance products in Hong Kong, where the industry has seen renewed growth in the wake of the pandemic.

Hong Kong’s insurance sector is expected to see solid growth over the next few years

This trend results from predictions that some insurance markets will experience dynamic growth in the coming years.

According to GlobalData, the health and accident insurance market in Hong Kong is expected to experience a compound annual growth rate (CAGR) of 7.4%, with gross premiums expected to increase from HK$21.4 billion (USD$2.7 billion) in 2024 to HK$28.5 billion (USD$3.6 billion) in 2028.

Mainland Chinese professionals move to Hong Kong amid insurance boom

A Bloomberg report revealed that insurance companies — including AIA Group Ltd and Prudential Plc — have been actively recruiting these professionals from mainland China to sell insurance plans to Chinese visitors. This segment, which previously drew the attention of regulators, has seen significant growth as cross-border travel resumes.

Since the start of 2023, mainland Chinese tourists have invested more than HK$75 billion (US$9.6 billion) in insurance policies in Hong Kong, despite ongoing regulatory measures to curb illegal sales and corruption.

Insurance products, often denominated in U.S. dollars or Hong Kong dollars, provide critical illness or life cover and often include savings or investment components. These features appeal to mainland Chinese buyers who want to protect their wealth from a weakening yuan and take advantage of the higher interest rates available in Hong Kong.

Insurance sales in Hong Kong on the rise

For agents, the sales growth has proven highly lucrative, with top earners in the industry reporting annual revenues of more than HK$10 million, driven by commissions and bonuses.

Because Hong Kong insurers are not allowed to sell their products directly to mainland China, agents often use personal networks to attract clients who travel to Hong Kong to complete the transaction. Mainland buyers typically use Hong Kong bank accounts or international credit cards to purchase policies, and China’s annual foreign exchange limit of $50,000 facilitates these transactions.

In response to concerns about emigration that threatened Hong Kong’s role as an international financial centre, the city government relaxed visa requirements in late 2022. The Top Talent Pass, which provides two-year visas to eligible people, and the Quality Migrant Admission Scheme, which does not require applicants to secure employment before arrival, have attracted about 200,000 new arrivals, mostly from mainland China.

At a recent AIA sales event, about 40 attendees, many of whom had recently obtained visas through these programs, gathered to discuss sales strategies. These professionals, aged between 20 and 50, are part of a broader trend of mainland Chinese moving to Hong Kong’s insurance sector as they seek more stable and lucrative career options.

Insurance Difficulties in Hong Kong

However, the path to success is not guaranteed for everyone. Some participants have encountered difficulties due to strict requirements imposed by both insurers and immigration authorities.

For example, one agent was denied a signing bonus after failing to complete mandatory training, leading to his contract being terminated. The case highlights increased scrutiny by Hong Kong’s immigration bureau, which now requires insurance agents seeking visa renewals to provide detailed commission reports and show that their sales are to clients, not purchases made by themselves.

Despite these challenges, demand for insurance products in Hong Kong among mainland Chinese visitors continues to grow. Companies such as HSBC Life and Chow Tai Fook Life Insurance Co (CTF Life) have seen an increase in sales to mainland Chinese customers and are expanding their agent networks to meet this growing demand.