BOC Life, HSBC and Manulife intention for greater share of Hong Kong’s silver-haired financial system

Main banks and insurers in Hong Kong, together with HSBCManulife and BOC Life plan to increase their companies to aged residents, a major phase of the town’s inhabitants.

Folks aged 65 and over made up 22 p.c of the town’s 7.5 million residents final yr, based on the statistics division. Since 1971, life expectancy in Hong Kong has elevated from 67.8 years to 82.5 years for males and to 88.1 years from 75.3 years for ladies in 2023.

BOC Life goals to increase its “RetireCation” program launched final month, which permits policyholders to make use of the money worth of their retirement plans to pay for his or her keep at properties offered by its companions in main cities throughout the continent. The insurer plans to increase its protection to Southeast Asia and Japan subsequent yr.

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“Previously, insurance coverage corporations struggled to offer safety to households when the breadwinner died all of the sudden,” Wilson Tang, CEO of BOC Life, mentioned in an interview. “At this time, the demand for retirement safety is rising as folks stay for much longer. They should begin planning for retirement early.”

Wilson Tang, CEO of BOC Life, December 12, 2024. Picture: Jonathan Wong alt=Wilson Tang, CEO of BOC Life, December 12, 2024. Picture: Jonathan Wong>

Tang mentioned the corporate would additionally work on merchandise aimed toward high-net-worth shoppers, together with property planning.

Edward Moncreiffe, CEO of worldwide insurance coverage at HSBC, mentioned there was robust demand for merchandise that allow households to go on their wealth to the following technology.

“In Hong Kong, the prosperous first technology is more and more prepared to make use of insurance coverage as an property planning instrument, with flexibility one in every of their prime priorities,” he mentioned. “Our financial savings merchandise present much more flexibility for our prospects to regulate how their dying advantages are paid to their family members, in addition to the flexibility to designate a trusted particular person to handle their coverage within the occasion of unexpected circumstances.”

HSBC Life offered a world file $250 million insurance coverage coverage in January. This helped the group’s new insurance coverage worth improve by 77 p.c within the first half to US$1.3 billion. Moncreiffe mentioned there was robust demand from high-net-worth people for such large property planning insurance policies.

Edward Moncreiffe, CEO of HSBC World Insurance coverage, on the HSBC essential constructing in Central on August 26, 2024. Picture: Dickson Lee alt=Edward Moncreiffe, CEO of HSBC World Insurance coverage, on the HSBC essential constructing in Central on August 26, 2024. Picture: Dickson Lee>

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“The insurance coverage trade can meet such demand as a result of insurance coverage insurance policies have named beneficiaries, may be executed exterior of personal probate, supply liquidity and divisibility and pays out wealth switch sums of very excessive worth.”

HSBC has launched extra options in its merchandise associated to Mandatory provident fund (MPF), a compulsory pension scheme launched by the federal government in 2000, to assist retirees handle their accrued advantages and preserve their monetary well-being, mentioned Lo Tak-fonf, chief govt of HSBC Pension.

“Particularly, now we have improved our withdrawal choices to raised meet the altering wants of retirees,” he mentioned. “Along with lump sum and partial withdrawals, we now supply a month-to-month withdrawal possibility, offering a steady revenue for residing bills.”

Patrick Graham, Chief Government Officer of Manulife (Worldwide) Restricted, pictured in Ngau Tau Kok on June 3, 2024. Picture: Xiaomei Chen alt=Patrick Graham, Chief Government Officer of Manulife (Worldwide) Restricted, pictured in Ngau Tau Kok on June 3, 2024. 3, 2024. Picture: Xiaomei Chen>

Manulife Hong Kong CEO Patrick Graham mentioned the insurer want to have an even bigger share of the silver-haired financial system, the place life expectancy is the second highest on the earth. Greater than a 3rd of the inhabitants will probably be over 65 by 2041, he added.

“We anticipate continued robust demand from this demographic for numerous well being care and financial savings options that meet their longevity wants.”

Manulife is the town’s largest pension supplier, which has launched annuity and MPF companies in addition to life insurance coverage merchandise for retirees to make sure that they’ve a steady revenue stream after retirement. retirement, Graham added.

He mentioned Manulife would introduce extra medical insurance for important diseases, medical remedies in addition to different monitoring applications to fulfill the wants of the Better Bay Space’s growing old inhabitants. About 88,000 Hong Kongers aged 65 or older lived within the southern province of Guangdong in 2022, 11% greater than in 2017, based on authorities information.

This text was initially printed within the South China Morning Post (SCMP)essentially the most authoritative voice in reporting on China and Asia for greater than a century. For extra SCMP tales, please discover the SCMP application or go to the SCMP Facebook And Twitter pages. Copyright © 2024 South China Morning Put up Publishers Ltd. All rights reserved.

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