Sales of new life insurance policies in Hong Kong dropped 8 per cent in first 9 months amid market volatility, Insurance Authority data shows
- Revenue from the new sales of investment-linked assurance schemes plummets 46 per cent
- Customers are waiting for a better time to buy these investment-linked products, Zurich Insurance (HK) CEO says
Revenue from new sales of investment-linked assurance schemes (ILAS) plummeted by 46 per cent year on year to HK$11.86 billion in this period, according to the data, which was released on Wednesday.
ILAS work like a hybrid life insurance policy and investment fund product. Unlike traditional life insurance policies, where insurers decide how to invest premiums, ILAS allow policyholders to invest in different investment funds.
Policyholders who invest in these products might earn higher returns during a rising market, or incur losses in a downturn. Hong Kong’s benchmark Hang Seng Index fell 26 per cent during the first nine months of this year, which has discouraged purchases of such products.
Market sentiment must improve and the border with mainland China must reopen for sales to bounce back, insurers said.
“Volatile markets are leading to a fall in sales of ILAS this year. Customers are waiting for a better time to buy these investment-linked products for better returns,” said Eric Hui, CEO of Zurich Insurance (HK).
