A plan to open insurance after-sales service centers in the Greater Bay Area is in the final stage and is waiting the mainland government's approval, the Insurance Authority said.
IA chief executive Clement Cheung Wan-ching revealed the news when attending a forum.
However, the details of the scheme, including the types of products to be launched and the number of locations have yet to be confirmed, he said.
It was necessary to establish the centers, especially for customers who buy products from insurers in Hong Kong but live in mainland, as they have not been able to physically come to the city in nearly three years due to Covid pandemic travel curbs, he said. Moreover, Hong Kong's insurance industry is not the best in terms of service, though it is mature, Cheung added.
Citing some examples, Cheung said the market was flooded with products for savings and investments but with lower and inadequate protection.
Meanwhile, the industry was heavily reliant on mainland tourists, while also lagging behind in terms of cutting-edge technology.
Also, he pointed out that the yuan has been weakening against the US and HK dollar, currencies in which insurance policies sold in the SAR are denominated.
Cheung said that the pandemic was a turning point for the insurance industry, as virtual long-term insurance business has grown tenfold, including virtual non-life insurance, which has expanded fourfold in the past year.
The move to set up the centers is expected to boost sales of policies to mainlanders by Hong Kong insurers, he added.
