HSBC Life has identified high-net-worth individuals (HNWIs) in Asia and retirees in Hong Kong’s Greater Bay Area as key growth drivers, reported the South China Morning Post.
In an interview with the publication, HSBC global insurance CEO Edward Moncreiffe highlighted the region’s rapid wealth creation and low social insurance levels as significant factors.
“Asia is where we see the highest levels of wealth creation; Asia is also where we see the lowest levels of social insurance,” the executive said.
“Our key growth areas are the two international wealth hubs of Hong Kong and Singapore, alongside the emerging wealth markets of mainland China and India,” he added.
“We are already a top-three international Asia insurer by new business volume and value. Roughly 90% of our growth comes from Asia, and this is where we will continue to invest.”
Under Moncreiffe’s leadership, HSBC Life’s new insurance value soared by 77% in the first half of the year, reaching $1.3bn (HK$10.14bn).
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By GlobalDataHe anticipates that the demand for large-scale policies, particularly for estate planning, will continue to rise among affluent clients.
The first half of the year saw a 12% increase in life insurance sales in Hong Kong, setting a new record driven by mainland visitors and local wealthy individuals.
Moncreiffe predicts that falling interest rates, which are expected to begin this month, will further boost demand for insurance savings products.
As time deposits offer lower returns, consumers may turn to insurance policies for more attractive yields.
Another potential growth area for HSBC Life is the increasing number of Hong Kong residents relocating to the Greater Bay Area.
The insurer’s presence in eight of the 11 cities in the region positions it to offer life, retirement and medical plans to retirees.
Additionally, Moncreiffe noted a new trend in Hong Kong where customers are opting for multicurrency savings plans.
“Hong Kong is a very international city where we have policyholders who may want to send their children to study in Canada or buy property in the UK for investment and retire in the Greater Bay Area,” Moncreiffe said.
“They need insurance savings and annuity plans in different currencies.”
HSBC Life’s reach extends beyond local markets, with customers from 49 different countries purchasing policies in the past 12 months.
Last month, Bajaj Allianz General Insurance teamed up with HSBC India in a bancassurance partnership to broaden its insurance product reach.
