Hong Kong’s Silver-Haired Economy: A Booming Market for Insurers
As Hong Kong’s population ages, major banks and insurers are gearing up to tap into the lucrative market of elderly residents. With people aged 65 and above making up 22% of the city’s 7.5 million residents, the demand for retirement protection and estate planning is on the rise.
A Shift in Focus
In the past, insurance companies focused on providing protection to families in the event of a breadwinner’s passing. However, with life expectancy increasing to 82.5 years for men and 88.1 years for women, there is a growing need for retirement planning. Wilson Tang, CEO of BOC Life, notes that people are living longer and need to start planning for retirement early.
BOC Life’s Expansion Plans
BOC Life aims to expand its “RetireCation” programme, which allows policyholders to use the cash value of their retirement plans to pay for stays in properties provided by its partners in major mainland cities. The insurer plans to widen its coverage to Southeast Asia and Japan next year. Additionally, BOC Life will focus on products for high-net-worth customers, particularly involving estate planning.
HSBC’s Jumbo Estate Planning Policies
HSBC Life has seen strong demand for products that allow families to pass on wealth to the next generation. The company sold a world record US$250 million policy in January, contributing to a 77% growth in new insurance value to US$1.3 billion in the first half. Edward Moncreiffe, CEO of global insurance at HSBC, notes that wealthy individuals are seeking jumbo estate planning policies that provide flexibility and liquidity.
Enhanced MPF Features
HSBC has introduced new features in its products related to the Mandatory Provident Fund (MPF), a compulsory retirement scheme introduced by the government in 2000. The enhanced features aim to help retirees manage their accrued benefits and maintain financial wellness.
Manulife’s Silver-Hair Economy Ambitions
Manulife Hong Kong CEO Patrick Graham is keen to tap into the silver-hair economy, where life expectancy is the second highest in the world. With more than one-third of the population expected to be over 65 by 2041, Graham anticipates strong demand for healthcare and savings solutions that address longevity needs. Manulife will introduce more health insurance products and annuities to meet the needs of the ageing population in the Greater Bay Area.
A Growing Market
The ageing population presents a significant opportunity for insurers in Hong Kong. With around 88,000 Hongkongers aged 65 or above living in southern Guangdong province, the demand for retirement protection and estate planning is set to continue growing. As the city’s population ages, insurers are poised to play a critical role in helping individuals plan for their golden years.
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