Insurance premiums rise in Q2 amidst Mainland tourist influx: Jefferies

Premiums peaked at $90b as the city saw its highest tourist number since the pandemic.

Cross-border insurance premiums in Hong Kong reached $80b in the second quarter of the year, spurred by the over 4 million Mainland Chinese Visitors (MCVs), the highest number since the COVID-19 pandemic.

“…The volume of MCVs rose +20% month-on-month and +15% year-on-year, which is especially important given that this demographic is the main source of life insurance sales,” Jefferies said, citing data from the Hong Kong Tourism Board and Insurance Authority.  

Whilst there were disclosure changes in the structure of insurance data release, there was still an upswing in sales, especially those made by third-brokers and bancassurers, the investment bank said.

The firm expects a surge in sales ahead of regulatory reforms made in mid-2025, it added.

HSBC and Hang Seng doubled their percentage of industry premiums year on year in 1Q2025, posting 12% and 7%, respectively, of growth during the period.  

The firm reckons that banking customers switch out of bank savings and into life insurance savings, as consumers expect interest rates to fall, making the longer duration of life insurance products better than bank savings, whose rate may soon be cut, Jefferies said.