About 80 per cent of Greater Bay Area mainland customers have no experience in buying insurance products from Hong Kong or Macau, but expressed a strong interest in learning more about cross-border insurance products, a survey carried out consultancy agency Deloitte shows.
The White Paper jointly published by Deloitte China and BOC Group Life Assurance Company Limited (BOC Life) – named GBA Outlook: Opportunities in Insurance – summarized the results of more than 1,000 respondents across the GBA and other Mainland cities, so as to identify the differentiators and denominators of customer’s behaviors by age in the region.
According to the survey results, except Guangzhou, Shenzhen and Hong Kong, insurance penetration in other GBA cities is less than 10 per cent.
However, many respondents stated to be especially interested in more information on critical illness coverage (64 per cent) and medical insurance products (63 per cent), while over 60 per cent of respondents indicated a lack of familiarity with insurance products and regulations as the main reason not to subscribe to insurance.
“The large population base of the Greater Bay Area provides huge market potential and new footholds for development of the insurance industry. The survey findings in the whitepaper shed light on consumer needs in the region, facilitating insurers in development of products and services to meet the different needs of customers
across the GBA,”the Chief Executive of BOC Life.
Respondents in mainland cities with experience buying insurance from Hong Kong or Macau also emphasized their offer of more reasonable premiums, higher yields and wider coverage.
In terms of insurance product preferences, critical illness coverage and medical insurance products ranked top two among GBA customers – both above 80 per cent while only 61 per cent of Hong Kong respondents chose critical illness.
In line with the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area Plan, the People’s Bank of China, China Banking and Insurance
Regulatory Commission, the China Securities Regulatory Commission, and State Administration of Foreign Exchange issued guidance on supporting
the development of the GBA through opening up the financial sector.
‘The Guidance features initiatives that enable insurers in Hong Kong and Macau to expand their business into the GBA Mainland market. Driving
financial integration within the GBA under the framework of the Mainland
and Hong Kong Closer Economic Partnership Agreement is a key initiative,’ the whitepaper added.
‘This includes empowering Hong Kong and Macao insurers to establish servicing centers in GBA Mainland cities to facilitate after-sales services, thereby improving customer experience and efficiency. These services include renewals, policy servicing, and claims’