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Hong Kong’s insurance market has added a unique feather to its cap as HSBC Life made history by selling a world record US$250 million worth of life insurance.
The insurance was sold this year and was recognized in the Guinness Book of World Records this week, surpassing the US$201 million policy purchased by a California tech billionaire in March 2014.
Although the insurer did not reveal the names of the policyholders, HSBC Life’s Hong Kong and Macau CEO Edward Moncriif said the clients were ultra-high-net-worth Asians with multiple nationalities. Stated.
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“Sales of insurance policies like this demonstrate Hong Kong’s emergence as Asia’s and the world’s leading ultra-high-net-worth insurance market,” Moncruyff said in an exclusive interview with the Post. “Until now, such huge insurance policies were only issued in the US, UK and Bermuda, but now Hong Kong has proven that it has the ability to issue such huge insurance policies.”
HSBC Life CEO Edward Moncrieff said Hong Kong had proven it had the capacity to issue huge insurance. Photo: Sun Yeung alt=HSBC Life CEO Edward Moncruif said Hong Kong had proven it had the capacity to issue huge insurance. Photo: Seungyoung>
The purpose of this policy is real estate planning, he added.
The insurance company said 19 companies underwrote the insurance sold to the tech giant, but only HSBC Life is currently underwriting the insurance. This client was referred by Charles Monat Group, an insurance broker focused on high net worth individuals.
“Although insurance risks can be written and placed anywhere in the world, our customers chose to purchase insurance in Hong Kong. This is because Hong Kong offers the insurance and services that high-net-worth customers need. It shows that we have the talent pool and ecosystem to do that,” Moncruyff said.
“As wealthy individuals turn to insurance as a means of leveraging and transferring wealth, Hong Kong will increasingly stand to benefit and capture more than its fair share in this business.”
In addition to the record policy issuance, HSBC Life sold 10 other policies worth more than US$50 million to customers in the past 12 months.
“There is a growing demand for megalife insurance policies in Asia, most of which are for succession planning purposes,” he said. “There is a wave of first-generation personal wealth, and they are now starting to think about transferring their wealth, businesses, enterprises, etc. to the next generation and beyond.”
Moncruyff said many of his ultra-high-net-worth clients’ assets are tied up in business operations or real estate and cannot be quickly converted into cash.
Wealthy clients in Western countries have long addressed estate management and estate planning through insurance, and this demand is starting to grow in Asia, he said.
“Insurance provides liquidity and can be divided among various family members or charities designated by the policyholder. It is also administered outside of probate, providing certainty and privacy. Masu.”
According to a study conducted by HSBC Global Research in August 2022, the number of billionaires in Asia, excluding China and Japan, is expected to increase from about 10 million in 2022 to 22 million by 2030. There is.
Hong Kong’s overall insurance market has grown over the past decade, mainly due to buyers from mainland China. The city’s new business insurance premiums were twice as high last year as they were 10 years ago, according to the study.
Last year, mainland tourists spent HK$59 billion (US$7.5 billion) on insurance policies in Hong Kong, according to insurance authorities.
Last year’s tally was a significant increase from HK$2.1 billion in 2022, HK$700 million in 2021 and HK$6.8 billion in 2020, when the city was largely closed to out-of-town visitors due to pandemic-related restrictions. . Before the coronavirus outbreak, sales were HK$43.4 billion in 2019, HK$47.6 billion in 2018, and HK$50.8 billion in 2017.
The Hong Kong government’s promotional efforts, including those carried out by Chief Executive John Lee Kathu, including roadshows in Southeast Asia and other overseas markets over the past two years, have increased global awareness of Hong Kong’s insurance industry. Ta.
“Hong Kong should continue to leverage these competitive advantages, which are difficult for other cities to emulate,” Moncruyff said. “With further stimulus and support, Hong Kong’s position in this field will be unsurpassed.”
This article originally appeared in the South China Morning Post (SCMP), the most authoritative news organization on China and Asia for more than a century. For more stories from SCMP, explore the SCMP app or visit SCMP on Facebook. twitter page. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.
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