Includes major banks and insurance companies in Hong Kong HSBCManulife and BOC Life are planning to expand their services to elderly residents, a significant portion of the city’s population.
According to Statistics Korea, people aged 65 or older accounted for 22% of the city’s 7.5 million residents last year. Since 1971, life expectancy in Hong Kong has increased from 67.8 years for men to 82.5 years in 2023, and from 75.3 years to 88.1 years for women.
BOC Life aims to expand its “RetireCation” program, which launched last month. This program allows policyholders to use cash values from their retirement plans to pay for lodging at properties offered by our partners in major mainland cities. Next year, we plan to expand insurance coverage to Southeast Asia and Japan.
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“In the past, insurance companies focused on protecting the family when the head of the household passed away unexpectedly,” Wilson Tang, CEO of BOC Life, said in an interview. “Now that people are living longer, the demand for retirement security is increasing. “You need to start planning for retirement early.”
December 12, 2024 BOC Life CEO Wilson Tang. Photo: Jonathan Wong alt=BOC Life CEO Wilson Tang December 12, 2024. Photo: Jonathan Wong>
Tang said the company will also develop products for high-net-worth clients, particularly those related to estate planning.
HSBC Global Insurance CEO Edward Moncreiffe said there was strong demand for products that would enable families to pass on wealth to the next generation.
“In Hong Kong, there is a growing trend among the affluent first generation to use insurance as a wealth planning tool, with flexibility being a top priority,” he said. “Our savings products provide customers with greater flexibility in customizing how their death benefit is paid out to their loved ones, as well as the ability to nominate a trusted individual to manage the policy should the unexpected arise. We provide.”
HSBC Life sold a world record $250 million worth of insurance products in January. This resulted in the group’s new policy value increasing by 77% in the first half of the year to US$1.3 billion. Moncreiffe said there is strong demand from wealthy individuals for such large estate planning policies.
Edward Moncrieff, CEO of HSBC Global Insurance, held at the Central HSBC main building on August 26, 2024. Photo: Dickson Lee alt=Edward Moncrieff, CEO of HSBC Global Insurance, at Central HSBC Main Building on August 26, 2024. Photo: Dixon Lee>
