2 1 Shi Ji Jing Ji Bao Dao·2025-10-27 12:33Core Insights - JD.com and Yuexiu Group are entering the Hong Kong insurance market, driven by the demand for cross-border financial services in the Greater Bay Area [1][2][8] - JD.com has obtained an insurance brokerage license and rebranded as "JD Insurance Consultant (Hong Kong) Limited," while Yuexiu Group has completed full ownership of Hong Kong Life Insurance [3][4][5] Company Developments - JD.com received its insurance brokerage license on October 14, 2023, allowing it to operate in general and long-term insurance sectors until October 2028 [3] - JD.com is building a local team in Hong Kong by recruiting for various positions, indicating a commitment to local operations [4] - Yuexiu Group has acquired 83.33% of Hong Kong Life Insurance through its subsidiary, marking a significant milestone after multiple attempts since 2016 [5][6] Market Dynamics - The entry of JD.com and Yuexiu Group reflects a broader trend of mainland capital seeking opportunities in the Hong Kong insurance market, which offers unique advantages such as multi-currency policies and global asset allocation [2][9] - The Hong Kong insurance market is experiencing a transformation, with a noticeable trend towards "mainlandization" as new policies are increasingly purchased by mainland clients [11][12] Industry Trends - The insurance market in Hong Kong is expected to focus more on health insurance, pension products, and high-end savings products to meet the needs of high-net-worth clients from the mainland [11][12] - The digitalization of the insurance sector is being accelerated by the entry of internet giants like JD.com, which brings innovative practices from the mainland [12][13] Challenges and Opportunities - Mainland companies face challenges in localizing operations, particularly in actuarial science, risk management, and compliance [14] - Despite the challenges, the unique market access provided by Hong Kong insurance licenses is seen as a valuable asset for mainland firms looking to serve cross-border clients [9][15] Market Performance - Hong Kong's insurance market is robust, with a reported insurance density ranking first in Asia and second globally, and a premium income growth of 50% year-on-year for long-term business in the first half of 2025 [16]