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Residents from China’ Inland Purchasing Insurance in Hong Kong Market: Current Situation, Problems and Policy Options (No.163, 2021)
2021-08-17
By Tian Hui & Chen Daofu, Research Institute of Finance, DRC
Research Report, No.163, 2021 (Total 6228) 2021-6-18
Abstract: The growth of insurance business in Hong Kong is boosted by policyholders from China’s inland since 2005, making great contribution to the boom of Hong Kong’s insurance market. It has exerted both positive and negative impacts on domestic insurance market. Affected by factors such as the COVID-19 epidemic, the number of policyholders from China’s inland to Hong Kong dropped sharply in 2020, causing great uncertainties to the growth of insurance market. In the post-epidemic era, the trend of insurance business will be affected by the following facts such as the joint effects generated by policy and market factors, including to what extent the insurance industry of China’s inland and Hong Kong could meet consumers’ demands; the development of fundamental systems on product management, payment and settlement, the protection of consumers’ rights and interests as well as the open-oriented advancement of China’s financial market. Urgent efforts are needed to establish a systemic management framework for promoting while regulating the insurance business market and take it as an important form of insurance cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area to promote its sound and orderly development. The authorities need to identify development goals for achieving win-win results for all parties and launch the cross-border insurance mechanism as soon as possible.
Keywords: insurance, management, residents from China’s inland, Hong Kong
