Facing a 16% depreciation in the yuan over the past three years, many Mainland Chinese consumers are turning to Hong Kong’s life insurance products to mitigate currency risk.
This trend is one of several driving the city's life insurance market, which is projected to grow from $62.6 billion in 2024 to $73.7 billion by 2029, according to GlobalData.
Hong Kong’s life insurance market is forecast to expand from HK$489.3 billion (US$62.6 billion) in 2024 to HK$575.6 billion (US$73.7 billion) in 2029, with a projected compound annual growth rate (CAGR) of 3.3%.
In 2025, the market is expected to reach HK$503.3 billion (US$64.4 billion) in direct written premiums (DWP), marking a 2.9% year-on-year increase.
The growth is attributed to several structural factors, including an aging population, the return of Mainland Chinese policyholders, and increased demand for insurance products from overseas markets. Insurers are adjusting their offerings to align with changes in population structure and consumer preferences, particularly in whole life and pension policies.
According to Swarup Kumar Sahoo, senior insurance analyst at GlobalData, Hong Kong life insurance has gained appeal among customers from Southeast Asia, the Middle East, and Mainland China due to “better coverage, competitive premiums, and better returns” on Hong Kong dollar-denominated policies. He added that the recent depreciation of the yuan has contributed to stronger demand, particularly among clients in the Greater Bay Area and Middle Eastern markets.
In response, the Insurance Authority of Hong Kong is expected to publish Arabic-language policy documents by the second quarter of 2025 to accommodate growing Middle Eastern interest.
Mainland demand is also being driven by affluent consumers in cities such as Shenzhen and Guangzhou.
Whole life insurance is projected to remain the dominant product line, accounting for 65.8% of life insurance DWP in 2025, and growing at a CAGR of 3.3% through 2029. Endowment policies are forecast to represent 14.8% of the market in 2025, with a higher growth rate of 5.8% annually over the same period.
Other segments – including pensions, annuities, and term life – are expected to account for the remaining 19.4% of total DWP.
With the population aged 65 and over estimated to reach 20.3% in 2025, insurers are adapting to longer-term coverage needs.
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