Insurance purchases by mainlanders hit record high in HK

September 2 2016 by InsuranceAsia News Staff

Insurance sales made by Hong Kong companies to mainland Chinese residents were at an all-time high in the second quarter.

The figure, according to the Office of the Commissioner of Insurance in Hong Kong, more than doubled from April to June this year.

The increase came even as China’s regulators took further steps to limit purchases of the products, which can serve as a way to sidestep the nation’s capital controls.

Data showed that in the second quarter, mainland insurance purchases surged to HK$16.9 billion (US$2.2 billion) from HK$7.1 billion a year earlier, exceeding the previous high of HK$13.2 billion in the first quarter this year.

China has been tightening the rules governing sales of Hong Kong insurance to mainland residents, as part of moves to clamp down on residents seeking to move money out of the country and evade capital controls.

Hong Kong policies also gained popularity with mainland buyers because of the perception that they offer better benefits than equivalent products sold by Chinese insurers.

MORE FROM: Legal/Regulatory