Mainlanders’ spending on HK insurance doubles

December 2 2016 by InsuranceAsia News Staff

A total of HK$48.9 billion (US$6.3 billion) was spent by Chinese mainlanders on Hong Kong insurance products in the first nine months of the year.

This is more than twice the figure logged during the same period in 2015.

The Office of the Commissioner of Insurance, which released the data Wednesday, said mainlanders accounted for 37% of the total new life insurance sales in the first three quarters valued at HK$132.3 billion.

Last year, mainlanders shelled out HK$21.1 billion on insurance products in first three quarters while the year-round figure stood at HK$31.6 billion.

This may all change in November, said Chan Kin-por, a lawmaker for the insurance sector, explaining that this is the month when UnionPay, China’s biggest credit card payment company, banned mainlanders from using its platform to buy investment-related insurance policies in Hong Kong.

Analysts think that Beijing’s ban aims to help plug capital outflows.

Because of such move, insurers generally expect sales to drop in the fourth quarter of this year, according to Chan.

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