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AIA (1299) said on Thursday that mainland visitor-segment businesses are not affected by Chinese tax authorities’ levy of 20 percent personal income tax on returns from Hong Kong insurance policies.
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Value on new business among the mainland visitor segment in the first half of 2026 has grown steadily despite a high comparison in 2025, said Jacky Chan, AIA’s regional chief executive and group chief distribution officer, adding that changes to insurance products since July 1 last year have driven the growth.
China established the Provisions of the State Council on Outbound Investment (State Council Order No. 837) on July 1 – its first unified, highest-tier administrative framework for outbound direct investment – and the 20 percent tax levy on offshore insurance income, which has raised worries among Hong Kong insurance firms regarding their operations.
Chan said the company remains positive about demand from mainland visitors and that taxation is not a major long-term factor for life insurance in Hong Kong. Instead, key drivers are access to global investments, diversified products, and personalized services.
Chan said the 20 percent tax on global investment income for mainland residents has always been in place and applies to all overseas investment returns, not only insurance returns. He also noted that if mainland clients continue to seek overseas asset diversification, especially among high-net-worth individuals, demand for Hong Kong insurance products will remain unaffected.
When asked whether the news on regulating insurance activities had fully reflected in the third-quarter results, Chan reiterated that the company continues to see strong demand from mainland visitors and has not observed any impact. He mentioned that the average insurance cost for mainland visitors in the first half of 2026 was US$21,000 (HK$163,800), slightly up from US$20,000 for the full year of last year.
