HSBC Life, Hong Kong’s largest insurer by sales, views high-net-worth clients in Asia and the Greater Bay Area as a key driver of growth for the foreseeable future, according to Edward Moncreiffe, CEO of global insurance at HSBC.
“Asia is where we see the highest levels of wealth creation; Asia is also where we see the lowest levels of social insurance,” Moncreiffe, who was elevated to the position in April, said in an exclusive interview with the Post, his first since his appointment.
“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 said. “We are already a top-three international Asia insurer by new business volume and value. Roughly 90 per cent of our growth comes from Asia, and this is where we will continue to invest.”
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Moncreiffe, a former sports journalist, was previously the Hong Kong and Macau CEO of HSBC Life. He replaced Greg Hingston, who left to pursue other opportunities.
Earlier this year, Moncreiffe was instrumental in HSBC Life selling a world record US$250 million policy. This helped the group’s new insurance value grow 77 per cent in the first half to US$1.3 billion.
Moncreiffe expects the record to be broken soon, as there is strong demand from wealthy individuals for such jumbo policies for estate planning.
“High-net-worth clients will be a key growth driver for HSBC Life in the coming years as we see many first-generation entrepreneurs in Asia looking to transfer their businesses and wealth to the next generation,” he said.
Insurance sales agents approach mainland tourists in Canton Road, Tsim Sha Tsui. Photo: Eugene Lee alt=Insurance sales agents approach mainland tourists in Canton Road, Tsim Sha Tsui. Photo: Eugene Lee>
“We have issued 15 policies with a sum insured of more than US$50 million since 2023 in Hong Kong and Singapore. We expect to be a leader in this space due to our credit rating and risk capacity.”
Life insurance sales in Hong Kong surged by 12 per cent in the first half to a record high as a buying spree continued among mainland visitors and wealthy individuals in Hong Kong.
New life insurance sales rose to HK$115.9 billion (US$14.9 billion) from the HK$103 billion reported in the same period last year, which itself was a record, according to the Insurance Authority data released on Friday. The level is the highest since the authority was established in 2016
Moncreiffe said he expects falling interest rates, which seem like a sure bet to begin this month, to increase demand for insurance saving products. A rate cut would mean lower returns from time deposits, which would lead people to opt for insurance policies for higher returns, he said.
Another growth driver for HSBC Life could come from the rising number of Hongkongers living in the Greater Bay Area, where the insurer operates in eight out of the 11 cities. This will open up opportunities to provide life, retirement and medical plans for retirees in the development area.
“We are seeing an emerging trend of not just mainlanders coming to Hong Kong to buy life policies but also an increasing number of Hongkongers who are moving to the Greater Bay Area to retire,” he said.
Moncreiffe said another new trend this year among customers in Hong Kong is to buy 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,” he said. “They need insurance savings and annuity plans in different currencies.”
In addition, visitors from dozens of countries have been buying products in Hong Kong. Customers from as many as 49 different markets have bought policies from HSBC Life in the last 12 months.
“To me, that shows Hong Kong is fundamentally an international financial city, and our products and services need to be international,” Moncreiffe said.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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