Mainlanders showing less interest in Hong Kong insurance products
Fewer Hong Kong insurance insurance policies have been purchased by mainland Chinese in the course of the first three quarters of 2017, in accordance with regulatory information.
According to a press release by the Hong Kong Insurance Authority, the worth of latest insurance policies bought to guests from the mainland dropped from HKD23.7 billion in the fourth quarter of 2016 to HKD10.1 billion in the third quarter of 2017.
For the third quarter of 2017, new premiums decreased by 47% year-on-year, principally because of the decline in insurance purchases by mainland Chinese, mentioned Carol Hui, government director of the Hong Kong Insurance Authority.
“Tighter measures governing mainland capital inflows and outflows have also led some insurers to adjust their sales strategies, causing a decline in premiums,” Hui was quoted as saying by Caixin.
Universal life insurance, a sort of short-term high-yield coverage, noticed a big decline, with gross sales dropping by 78% because the begin of 2017.
The lower in purchases was affected by Beijing’s tightening of private international change purchases and outbound company purchases of insurance in late 2016 in order to cease capital flight. Concerns over the devaluation of the yuan have principally subsided as effectively.
In October 2016, UnionPay, China’s largest banking card firm disallowed mainlanders from buying insurance products, together with these used as investments, in Hong Kong.
According to Hui, whereas the gross sales numbers of protecting insurance insurance policies resembling medical insurance to mainland guests will stay regular, the regulator expects that gross sales of investment-related insurance insurance policies will proceed to say no in the close to future.
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