Hong Kong has a long history of insurance and has been a long-standing industry in the rapidly developing economy of Hong Kong. Especially in the past half century, many powerful insurance companies around the world have set foot in this auspicious land. With the influx of global capital, technology, and talent, Hong Kong has rapidly developed into one of the major insurance markets in the Asia Pacific region. The top ranked insurance companies in Hong Kong are all companies with a long history, such as Prudential, which has a high reputation in mainland China and was founded in 1848 with a history of 167 years. AIA Insurance was founded in 1919 and has a history of 96 years.
The insurance industry in Hong Kong has a strict and sound regulatory system. Hong Kong upholds the rule of law, and policies signed in Hong Kong are protected by Hong Kong laws. In the past, there have been cases of insurance claims being rejected in mainland China, but the “disclaimer clause” and “suicide clause” listed in Hong Kong policies clearly reflect the differences between insurance products in mainland China and Hong Kong.
Firstly, the majority of people in the insurance service industry in Hong Kong have bachelor’s and master’s degrees, with a small number holding doctoral degrees. They are able to have a deep understanding of customer needs and recommend the most suitable products to customers, rather than blindly recommending products. This will improve the compatibility between the customer and the product, and the customer’s applicability and comfort will be enhanced. Secondly, those engaged in the insurance service industry in Hong Kong are required to be strictly regulated by the Insurance Association, and there is no need to deceive customers or conceal their true situation in order to sign insurance policies, thereby preventing customers who need to claim compensation from receiving the compensation they deserve. When a customer’s claim is compensated, their satisfaction will also be greatly improved. Therefore, the complaint rate for customers purchasing insurance in Hong Kong is extremely low.
Affordable premiums and high returns: The average life expectancy of Hong Kong people ranks among the top three in the world because longer life expectancy can reduce the possibility of insurance companies compensating, and combined with various factors such as operating costs, premiums are cheaper than those of mainland counterparts. Moreover, Hong Kong insurance companies are able to invest in global assets, and the investment industry standards in Hong Kong are high. According to historical data, the insurance return rate in Hong Kong has always been higher than that of its mainland counterparts.
Wide coverage: Taking major illnesses as an example, it is understood that there are about 30 types of critical illnesses insured in China, while many insurance companies in Hong Kong have insured over a hundred types of critical illnesses. Moreover, there is a limit on the coverage amount in China. It is understood that the maximum coverage amount for children’s life insurance can only reach 100000 yuan.
Easy claims: It is understood that buying insurance in mainland China is simple but relatively difficult to claim, while Hong Kong insurance has strict underwriting procedures and relatively simple claims procedures when buying insurance. Taking medical insurance as an example, if a patient is hospitalized due to illness, the policyholder can submit a claim application form by mail (which can be downloaded and printed), along with medical expense invoices, disease diagnosis certificates, and other materials to the insurance company. The insurance company will then send a compensation check from Hong Kong, and the policyholder does not need to go to Hong Kong in person throughout the entire claim process.
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