65% of Hong Kong SMEs lack business interruption coverage

Rising property rental prices remained top concern for the second consecutive year.

Whilst most (65%) business leaders in Hong Kong are concerned about income loss from business interruptions, only 24% have insurance to cover this risk, according to QBE Insurance’s latest report.

The QBE Hong Kong SME Survey gathered insights from 600 business executives on key risks and opportunities, including workplace safety, talent retention, and insurance coverage.  

Rising property rental prices remained the top business concern for the second consecutive year, cited by 67% of respondents, up from 64% in 2024. 

Similarly, 65% worry about losing staff and 64% about equipment malfunction, yet just 19% and 25%, respectively, have insurance policies in place.  

Andex Fung, head of SME Segment, Asia at QBE, noted that despite increased awareness of these risks, many SMEs remain underinsured. 

The survey also highlighted a growing focus on workplace safety and health (WSH). 

Communication of coverage and benefits to employees rose to 92% in 2025 from 90% last year. Awareness of employee compensation insurance, which is mandatory under Hong Kong law, increased to 83% from 76% in 2024. 

However, the proportion of businesses with return-to-work policies declined from 86% to 82%, whilst the number of companies reporting WSH incidents rose from 22% to 25%.  

Mental health remains a priority for Hong Kong SMEs, with 95% of respondents recognising its importance, up slightly from 94% last year. 

More companies 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 major challenges as 50% of respondents identified it as a key issue, up from 39% in 2024. 

Increasing pay and bonuses emerged as a primary strategy for retaining skilled workers, with 43% of SMEs prioritising this approach compared to 29% last year. 

Flexible work schedules also gained traction, with 39% of businesses offering them, up from 26%. 

Other initiatives to enhance employee satisfaction include creating relaxation spaces to support work-life balance.  

For the first time, the survey examined attitudes towards older workers, who make up nearly 14% of Hong Kong’s workforce. 

SMEs remain a significant employer of this demographic, with 49% reporting that at least 10% of their workforce is aged 65 or older.

Employers recognise the value of older workers, citing their experience (34%), higher retention rates (26%), and loyalty (25%) as key strengths.