HSBC LifeHSBC, Hong Kong's largest insurer by sales, sees high-net-worth clients in Asia and the Greater Bay Area as a key driver of growth for the foreseeable future, according to Edward Moncreiffe, chief executive of HSBC's global insurance business.
“Asia is where we see the highest levels of wealth creation; Asia is also where we see the lowest levels of social security,” Moncreiffe, who was promoted to the post in April, said in an exclusive interview with the Post, his first since his appointment.
“Our key growth areas are the two international wealth centres of Hong Kong and Singapore, together with the emerging wealth markets of mainland China and India,” he said. “We are already one of the top three international insurers in Asia by volume and value of new business. Approximately 90 per cent of our growth is coming from Asia, and that is where we will continue to invest.”
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Moncreiffe, a former sports journalist, was previously chief executive of HSBC Life in Hong Kong and Macau. He replaced Greg Hingston, who left to pursue other opportunities.
Earlier this year, Moncreiffe was instrumental in HSBC Life selling a world-record policy worth $250 million. This helped the value of the group's new insurance grow by 77 percent in the first half to $1.3 billion.
Moncreiffe expects the record to be broken soon, as there is strong demand from wealthy individuals for such giant estate planning policies.
“High net worth clients will be a key growth driver for HSBC Life in the coming years as we see many first-generation entrepreneurs in Asia looking to transfer their businesses and wealth to the next generation,” he said.
Insurance agents reach out to mainland tourists on Canton Road, Tsim Sha Tsui. Photo: Eugene Lee alt=Insurance agents reach out to mainland tourists on Canton Road, Tsim Sha Tsui. Photo: Eugene Lee>
“We have issued 15 policies with an insured sum of over $50 million since 2023 in Hong Kong and Singapore. We expect to be a leader in this space due to our credit rating and risk capacity.”
Life insurance sales in Hong Kong rose 12 percent in the first half to a record high as a buying spree among mainland visitors and wealthy individuals in Hong Kong continued.
Sales of new life insurance The total amount of insurance rose to HK$115.9 billion (US$14.9 billion) from HK$103 billion in the same period last year, which in itself was a record, according to data from the Insurance Authority released on Friday. The level is the highest since the authority was established in 2016.
Moncreiffe said he expects falling interest rates, which seem a sure bet to begin this month, to boost demand for insurance savings products. A rate cut would mean lower yields on term deposits, prompting people to opt for insurance policies for higher returns, he said.
Another growth driver for HSBC Life could come from the growing number of Hong Kongers living in the Greater Bay Area, where the insurer operates in eight of the eleven cities. This will open up opportunities to offer life, retirement and medical plans to retirees in the developing area.
“We are seeing an emerging trend of not only mainland citizens coming to Hong Kong to buy life insurance policies, but also an increasing number of Hong Kongers moving to the Greater Bay Area to retire,” he said.
Moncreiffe said another new trend this year among Hong Kong customers is purchasing multi-currency savings plans.
“Hong Kong is a very international city where we have policyholders who may want to send their children to study in Canada or buy a property in the UK to invest and retire in the Greater Bay Area,” he said. “They need savings plans and annuities in different currencies.”
In addition, visitors from dozens of countries have been purchasing products in Hong Kong. Customers from as many as 49 different markets have purchased HSBC Life policies in the past 12 months.
“For me, this shows that Hong Kong is fundamentally an international financial city and that our products and services must be international,” said Moncreiffe.
This article originally appeared in The South China Morning Post (SCMP)the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, explore the SCMP Application or visit the SCMP Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.
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