5 trends driving job creation in Hong Kong's insurance sector

Hong Kong was recently ranked 70th globally in Mercer's Quality of Living survey, making it the 3rd highest-ranked Asian city after Singapore and Tokyo. As Hong Kongers pursue better standards of living and more comprehensive health and wealth planning, we have seen strong growth in the insurance sector as consumer demand increases.

Here are five trends we expect to see drive job creation this quarter.

1. Increasing competition in health insurance
The area of health insurance is seeing steady growth as companies invest more in employee benefits and consumers display greater interest in life and health insurance. However it is increasingly difficult for insurers to maintain a strong foothold over competitors in the market given the vast options consumers have. As such we see insurers investing more in their operations support department to improve the quality and speed of service in order to beat the competition.

2. Continuous M&A activities
An increasing number of merger and acquisition deals in the insurance sector will create new opportunities within the industry. Experienced strategic talent such as corporate development consultants will be actively sought after as companies seek to make a smooth transition post-merger. Professionals with knowledge of the Hong Kong and Asian markets will be integral to the success of these businesses.

3. Digital transformation
Purchase behaviours have been changing, with more and more companies embracing digital transformation to capture customers via e-commerce and mobile channels. The same applies to insurance companies. Changing regulatory requirements have also driven insurers to focus on IT infrastructure advancement and improvement of the overall customer experience. Project managers, for example, will be very much in demand this quarter to support such transformation projects.

4. Strong focus on compliance
The insurance industry is one that is highly regulated and monitored, and we have seen strong hiring in the compliance and audit functions as insurers prepare themselves for regulatory changes in the industry. Skills in regulatory and product compliance, Anti-Money Laundering, compliance advisory, and distribution compliance will be highly valued by potential employers.

5. Growth of risk management
We have also seen insurers develop their risk function in a bid to lower financial and operational risks in the market. This has attracted audit professionals seeking a change as they have transferable and highly valuable skills, allowing them to transit smoothly into the risk function within insurance. We expect to see more audit professionals make the move, leaving vacant positions within audit teams.

These factors point to a positive climate in Hong Kong's insurance market. In addition, insurers view Asia as a high-growth market with Hong Kong being the perfect regional headquarters given its strategic location. Hiring activities are expected to continue steadily in the April to June quarter, according to the Hays Quarterly Report.