HSBC Life (International) Ltd. is strategically positioning itself to enhance its customer reach in Hong Kong by leveraging a combination of broker, bancassurance, and digital channels. The company aims to innovate beyond traditional insurance products, according to CEO Daisy Tsang.
“We are actively exploring ways to strengthen our distribution network and meet the increasing demand in the region,” Tsang shared in an interview with Insurance Asia. “Our focus is on partnering with high-quality entities that possess specialized expertise to help us tap into underserved customer segments and improve engagement.”
A key aspect of this strategy involves collaborating with insurtech companies to utilize artificial intelligence, particularly as the industry recovers from a downturn that began during the COVID-19 pandemic in 2021. With the easing of travel restrictions, Hong Kong’s economy is poised for a rebound, which is expected to drive growth in the life insurance sector.
Tsang, who has been part of the HSBC group for over two decades, envisions HSBC Life as the foremost provider of comprehensive wealth and health solutions in Hong Kong and Macau, moving beyond conventional insurance offerings.
Data from the Insurance Authority indicates that HSBC Life commanded a 21.4% market share of new business premiums and a 19.7% share of annualized new premiums in the first half of 2024, with over $3.17 billion (HK$24.6 billion) in new business premiums recorded during that period.
The life insurance market in Hong Kong is projected to grow at a compound annual growth rate of 4.1% from 2024 to 2028, with direct written premiums anticipated to rise from $58.7 billion this year to $68.8 billion in four years, according to GlobalData Plc. Last year, the total premiums in the sector increased by less than one percent to $61.13 billion (HK$474.79 billion).
Looking ahead, Tsang emphasized HSBC Life’s plans to bolster its digital capabilities and expand its footprint in the Greater Bay Area over the next five years.
In her interview, Tsang addressed several key aspects of HSBC Life’s strategy:
Addressing Changing Customer Needs
“Our strategy is to leverage our strong local presence and extensive network in the Greater Bay Area to remain accessible to our customers,” Tsang stated. She emphasized the importance of innovation in products and services, focusing on flexibility and accessibility, particularly through enhanced digital capabilities. “We aim to ensure that our products and services are readily available to meet the evolving needs of our diverse customer base.”
Capturing Demand from High-Net-Worth Segments
HSBC Life continues to seek opportunities to strengthen its distribution network. Tsang highlighted the firm’s robust performance across various channels, including brokers and digital platforms. “We are focused on collaborating with high-quality partners and exploring potential insurtech partnerships to better serve untapped segments,” she added.
Talent Development for Competitive Edge
Recognizing talent as crucial to organizational success, Tsang noted that HSBC Life is committed to investing in employee development programs and fostering a collaborative culture. “Many of our leaders have been with the HSBC group for years, which reflects our dedication to nurturing and recognizing talent,” she said.
Enhancing Customer Service
“Customer centricity is at the heart of our operations,” Tsang explained. The insurer prioritizes collecting feedback to refine processes related to product design and customer service. “As our customer base grows, we are committed to creating a holistic support ecosystem that addresses their needs.”
The Future of Bancassurance at HSBC Life
Tsang asserted that insurance is a vital component of wealth management. “HSBC Life will continue to play a critical role in the bank’s strategy, collaborating with various departments to optimize synergies and identify growth opportunities,” she stated. The goal is to innovate and integrate products with the bank’s evolving offerings, enhancing accessibility for customers.
Vision for the Future in Hong Kong and Macau
In her concluding remarks, Tsang articulated a clear vision for HSBC Life: “We aspire to be the leading insurer and the preferred provider of comprehensive wealth and health solutions. Our goal is to play an active role in our customers’ lives, safeguarding their aspirations while expanding our distribution and product offerings.”
With a focus on technology and customer engagement, HSBC Life is poised to navigate the evolving landscape of the insurance industry in Hong Kong and beyond.
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