Core Viewpoint - The Hong Kong insurance market is experiencing a surge in demand from mainland customers as they rush to purchase high-yield insurance products before the upcoming regulatory changes that will limit the demonstration of returns to 6% and 6.5% for different currency products [1][6]. Group 1: Market Trends - The Hong Kong insurance market is witnessing a peak in customer visits, particularly from mainland clients, who are traveling specifically to secure insurance policies with a projected return of over 7% before the end of June [3][4]. - In 2024, the total premium for new insurance policies in Hong Kong reached HKD 219.8 billion, marking a 22% year-on-year increase and the highest in a decade [9]. - Mainland visitors contributed HKD 62.8 billion in premiums, a 6.5% increase from the previous year, accounting for 29% of all new premiums in Hong Kong [9]. Group 2: Product Preferences - Savings-type insurance remains the most popular category, with a market share of 62.1% in new policies, where whole life insurance constitutes 58.5% [10]. - Approximately 91% of new policy premiums are derived from savings-type products, with an average annual premium of HKD 409,000 per policy [10]. - The shift in motivation for mainland customers purchasing Hong Kong insurance has transitioned from seeking protection to focusing on investment opportunities, driven by lower interest rates and unsatisfactory returns from domestic investments [6][7]. Group 3: Regulatory Changes and Risks - The Hong Kong Insurance Authority has set new guidelines that will limit the demonstration of returns on insurance products, effective July 1, which has prompted a rush among customers to purchase before the changes take effect [1][6]. - There are concerns regarding the sales practices of unlicensed agents promoting Hong Kong insurance to mainland clients, which could lead to regulatory issues and potential consumer harm [12][13]. - The Insurance Authority has initiated reforms on the commission structure for intermediaries to address the issues related to unlicensed sales and high commission rates [14].

Core Insights - The Hong Kong insurance market presents both opportunities and challenges for mainland clients, with new policy premiums from mainland visitors expected to reach HKD 62.8 billion in 2024, a 6.5% year-on-year increase, accounting for 28.6% of total new policy premiums in personal business [1] Group 1: Investment Opportunities - The demand for Hong Kong insurance products is driven by the need for better understanding and communication regarding insurance terms, as well as the uncertainty of returns and health disclosures [1] - Companies like 万通保险 (Manulife) aim to bridge the information gap and help clients navigate the complexities of investing in Hong Kong insurance [1] Group 2: Selection Criteria for Insurance Companies - Understanding insurance terms is crucial, including coverage scope, exclusions, waiting periods, and claims service [3] - The reliability of the insurance company is a key factor, as it reflects the company's investment capability and long-term stability [3] Group 3: Brand Background - The credibility of an insurance brand is often linked to its shareholders; for instance, 万通保险 is backed by the 170-year-old 万通人寿 (Manulife Financial), which has a strong financial rating [4] - 万通保险 collaborates with Barings, a 260-year-old asset management firm, enhancing its investment reliability [5] Group 4: Investment Strength - Investment capability is a core indicator of an insurance company's ability to meet its commitments, especially for savings and dividend products [7] - 万通保险 has a dedicated investment team focusing on alternative assets and entrusts 99% of its fixed-income assets to Barings, which is crucial for product yield stability [7][9] Group 5: Solvency Ratio - Hong Kong's insurance sector is governed by strict regulatory frameworks that require companies to maintain a solvency ratio above 100%, with leading firms often exceeding 200% [10] - 万通保险 has reported a solvency ratio exceeding 240%, indicating strong capital strength to cover potential claims [10] Group 6: Investment Strategy - Investing in Hong Kong insurance requires careful planning and informed decision-making, with a focus on matching personal needs with the right products [11] - Investors are advised to consult with experts from 万通保险 to fully understand the investment landscape [11]