HSBC Life to keep using tech to stay on top in Hong Kong

The life insurer wants to offer solutions beyond traditional products, its CEO says.

HSBC Life (International) Ltd. wants to harness its broker, bancassurance and digital channels to capture more customers in Hong Kong, whilst using disruptive technologies to improve and automate its traditional insurance business, according to its top official.

“We continue to look for opportunities to strengthen our distribution network and capture the growing demand in the region,” HSBC Life chief executive officer Daisy Tsang told Insurance Asia.  “Our strategic focus will be on collaborating with high-quality partners with specialised expertise to help us access untapped customer segments and enhance our customer interactions.”

These include partnerships with so-called insurtech firms to leverage artificial intelligence capabilities, she added, as the sector rebounds from a decline that started at the height of the COVID-19 pandemic in 2021.

The recovery is expected as Hong Kong’s economy tries to regain its growth momentum amidst easing travel restrictions.

Tsang, who has been with the HSBC group for more than two decades, said her vision for HSBC Life, Hong Kong’s leading life insurer, is to become the leading provider of complete wealth and health solutions in the city and nearby Macau, beyond traditional insurance products. 

HSBC Life had a 21.4% market share for new business premiums and 19.7% for annualised new premiums in the first half of 2024, according to data from the Insurance Authority. The insurer wrote more than $3.17b (HK$24.6b) in new business premiums in the six months to June.

Hong Kong’s life insurance industry is expected to grow at a compound annual growth rate of 4.1% from 2024 to 2028, according to London-based GlobalData Plc. Direct written premiums are projected to rise to $68.8b in four years from $58.7b this year.

The sector’s total premiums grew less than a percent to $61.13b (HK$474.79b) last year. 

Tsang said HSBC Life seeks to expand its digital capabilities and strengthen its presence in the Greater Bay Area in the next five years.

Here is the excerpt from her interview with Insurance Asia.

How do you address the changing needs of customers in and outside Hong Kong?

Our strategy is to capitalise on our strong local presence and our significant footprint in the Greater Bay Area to ensure we are always there for our customers. We are committed to continuous innovation in our products and services, aiming to deliver exceptional value to our customers. A key part of our strategy is enhancing flexibility and accessibility, especially through the expansion of our digital capabilities. This is pertinent in today’s rapidly changing environment, where customer circumstances evolve swiftly and their mobility increases. Customers across all segments and geographical locations are equally important to us. To cater to their evolving needs effectively, we strive to be readily available whenever they need us, and ensure they have easy access to our products and services.

What other distribution channels are you considering to capture the growing demand from high-net-worth segments?

We continue to look for opportunities to strengthen our distribution network and capture the growing demand in the region. Given our robust performance across broker, bancassurance and digital channels, our strategic focus will be on collaborating with high-quality partners with specialised expertise to help us access untapped customer segments and enhance our customer interactions, including potential partnerships with insurtech firms that leverage AI capabilities.

How do you plan to develop talent to remain competitive?

Talent forms the bedrock of any organisation, and we continue to invest in talent development programmes to enhance the skills of our employees. We also strive to foster a culture that encourages collaboration and knowledge-sharing, thereby creating opportunities for our employees to contribute and grow simultaneously. Many of the leaders within our organisation, including myself, have been with the HSBC group for an extended period - in my case, for over 20 years. This underscores our commitment to fostering an environment that nurtures and recognises talent. Rest assured, we will continue to prioritise this aspect in our ongoing efforts.   

How do you plan to improve customer service to stay on top?

Customer centricity is core to everything we do. We prioritise gathering valuable feedback and integrating it into our processes, including product design, customer journey enhancements, and service provision. With a rapidly growing customer base seeking protection beyond the purchase of our products, our initiatives are geared towards creating and providing them with a holistic support ecosystem. This ecosystem encompasses health and other benefits, makes it easier for them to manage their portfolios, and ensure readily available assistance. Our aim is to seamlessly cater to our customers’ evolving needs.

What is the future of bancassurance at HSBC Life?

Insurance and protection are fundamental elements of wealth management and financial planning. Recognising this, HSBC Life is poised to maintain its pivotal role within the bank’s proposition and future plans to serve our customers. As an integral part of the HSBC group, we will continue to work closely with other areas of the bank to maximise synergies and seize growth opportunities. Our goal is to continually innovate our products and services to align seamlessly with the bank’s evolving offerings. We aim to integrate into the increasingly digitalised bank journeys and customer experiences where appropriate, enhancing accessibility. This includes simplifying application processes for the mutual benefit of our customers and our bank distribution network.  

What is your vision and strategy for HSBC Life in Hong Kong and Macau in the next five years?

At HSBC Life, the vision for our business in Hong Kong and Macau is to be the leading insurer and the go-to provider of comprehensive wealth and health solutions. We are committed to going beyond the traditional role of an insurer that just pays claims by playing an active role in each life stage of our customers, protecting and helping them to fulfil their goals and aspirations. With this vision in mind, our strategic priorities include leveraging our strengths in wealth management, particularly within the high-net-worth segment. Simultaneously, we are expanding our distribution reach across various segments and ensuring the availability of a comprehensive range of health and protection products and services.