A recent survey by QBE Insurance has revealed that 65% of small and medium-sized enterprises (SMEs) in Hong Kong remain without business interruption insurance, despite growing concerns over potential income loss. The survey, which gathered insights from 600 business executives, highlighted the risks SMEs face, including workplace safety, talent retention, and insurance coverage.
The survey found that while most business leaders are concerned about the financial impact of business interruptions, only 24% have taken steps to mitigate this risk with appropriate insurance.
Property rental prices continue to be the top concern for Hong Kong SMEs, with 67% of respondents citing it as their primary business challenge for the second year in a row. This figure has increased slightly from 64% in 2024. Additionally, 65% of business leaders expressed worry about staff turnover, and 64% were concerned about potential equipment malfunctions. However, just 19% and 25% of companies, respectively, have insurance coverage for these issues.
Andex Fung, Head of SME Segment for Asia at QBE, pointed out that despite growing awareness of these risks, many SMEs remain underinsured. “This highlights a critical gap in coverage that could leave businesses vulnerable to unforeseen events,” Fung said.
The survey also noted a rising focus on workplace safety and health (WSH). The proportion of companies communicating insurance coverage and benefits to employees rose to 92% in 2025, up from 90% the previous year. Awareness of employee compensation insurance, which is mandatory by law in Hong Kong, also saw an increase, rising from 76% in 2024 to 83% in 2025.
However, some setbacks were observed in the area of workplace safety, with the percentage of businesses reporting WSH incidents rising from 22% to 25%, and the number of companies with return-to-work policies decreasing from 86% to 82%.
Mental health continues to be a top priority for Hong Kong SMEs, with 95% of survey respondents acknowledging its importance, up slightly from 94% last year. In response, more businesses are implementing measures to support employee well-being, such as offering flexible working hours (46%, up from 39%) and work-from-home arrangements (40%, up from 28%).
Talent acquisition and retention remain significant challenges for SMEs, with half of the respondents identifying them as major concerns, up from 39% in 2024. Increasing pay and bonuses is now a primary strategy for retaining skilled workers, with 43% of SMEs prioritizing this approach, compared to 29% last year. The offering of flexible work schedules has also gained momentum, with 39% of businesses providing this option, up from 26%.
Furthermore, the survey explored attitudes towards older workers, who constitute nearly 14% of Hong Kong’s workforce. The findings indicate that SMEs continue to be a key employer of this demographic, with 49% of companies reporting that at least 10% of their workforce is aged 65 or older. Employers recognize the value of older workers, citing their experience (34%), higher retention rates (26%), and loyalty (25%) as their key strengths.
In summary, the QBE Hong Kong SME Survey underscores both the growing awareness of risks such as business interruptions and the continued challenges faced by SMEs in terms of insurance coverage, workplace safety, and talent management.
Related topics
