2023 Mainland to Hong Kong to insure $59 billion! Why are rich people buying Hong Kong insurance?

It has been one year since the resumption of full customs clearance between the Mainland and Hong Kong. Over the past year, in addition to the continued hot cross-border consumption by residents of the Greater Bay Area, the Hong Kong insurance market has also seen a strong rebound, with a renewed surge in mainland residents taking out insurance in Hong Kong.

According to the latest insurance industry figures for 2023 forecast by the Hong Kong Insurance Authority, the new premiums for individual life insurance policies taken out by Mainland visitors to Hong Kong will be aboutHK$59 billionyear-on-yearSoared 27 timesThe

This value has surpassed the pre-2019 epidemic level and is second only to the all-time peak of $72.7 billion in 2016.

(Source: Hong Kong Economic Journal)

Of the products insured by Mainland visitors Savings-based insurance accounts for 60%(math.) genusProtection insurance accounts for 40%The

As an international financial center with a wealth of financial products and services, Hong Kong has attracted a large number of investors and consumers to buy insurance products, especially those with high-end financial needs. At the same time.Liberalization of the Hong Kong insurance marketcap (a poem)Improvement of the regulatory systemIt is also one of the important factors attracting mainland visitors to take out insurance.

01

Hong Kong Insurance for Global Sales

As one of the most mature insurance markets in the world, Hong Kong has a very sound insurance system. Hong Kong's insurance business is based in Hong Kong, connected to the Mainland and covering the whole world.

Hong Kong insurance follows the principle of incidence-based system. Regardless of the country you come from (except Japan), whether you are a Mainland resident or a local resident of Hong Kong, as long as you go to Hong Kong to take out an insurance policy in person and sign the policy in person, no matter where you are in the future, the policy will be strictly protected by Hong Kong laws.

Note: Due to Japanese law, Japanese citizens or long-term residents of Japan are unable to purchase Hong Kong insurance (with the exception of certain individual insurance companies).

02

Savings and dividend insurance has many advantages

Hong KongSavings and dividend insuranceIt is way ahead in Asia and even in the world. Even comparing with Singapore, the expected return of Hong Kong's participating savings insurance is the highest in Asia.
Advantage one

Reasonable and legal allocation of offshore dollar-denominated assets

Savings insurance in Hong Kong is uniformly denominated in US dollars. The US dollar is a globally accepted currency and the reserve currency of several countries. Hong Kong insurance is an offshore asset and is not subject to local taxation, allowing effective tax avoidance.
Advantage two

High expected returns

In 2024, savings participating insurance in Hong Kong offers expected returns up to 7.2%-7.3%. For example, the expected maximum IRR of a new product of an insurance company with a 2-year maturity period can even reach 7.21%.

From: First Finance
Advantage three

Multi-currency conversion

Convertible currencies are introduced in Hong Kong's participating savings and profits insurance. Major insurance companies such as AIA and Prudential in Hong Kong have 9 currencies freely convertible savings and participating insurance products, giving customers the flexibility to adjust the currency of their policies according to their actual needs in order to cope with potential currency risks.

Advantage four

Unlimited change of insured person, advance appointment of second insurer

Hong Kong's participating insurance policies allow unlimited changes of insured persons, and the policies can be continued from generation to generation. As long as there are offspring, the policy can continue to exist.

Advantage 5

Policies can be split to different people

Savings participating insurance in Hong Kong can be split into multiple policies. This allows the policy to be allocated to different family members according to individual needs without the need to cancel the whole policy or part of the policy, thus avoiding financial losses due to surrender of the policy.

Also, with the Policy Currency Conversion feature, the split policy can be specified in different currencies so that you can be flexible even if your family members are in different parts of the world.
Advantage 6

Dividend income can be locked in, from non-guaranteed to guaranteed

Hong Kong's participating savings and dividend insurance has a dividend locking feature. Usually from the xth policy anniversary, dividend income (reversionary dividends and terminal dividends) can be locked in each year, turning fluctuating dividends into fixed dividends, allowing customers to choose to partially lock in dividends when the market performs well, so as to give customers a sense of control over the policy.

In addition to the above features, Hong Kong insurance also offerspolicy transfer,Death Benefit Class Trust Option,Annuity Conversionand other services that attract global customers.

If you are interested in Hong Kong insurance, please contact Timeless Group for more details!