Hong Kong insurance gains momentum as mainland arrivals climb 19%

December visitor traffic hit 4.7 million reinforcing cross-border premium growth channels

Hong Kong’s visitor arrivals continued to rise in 2025, supporting cross-border life insurance sales to Mainland Chinese visitors, according to Jefferies Equity Research.

Monthly arrivals fell to 3.3 million in September due to seasonal factors, including multiple typhoons, but rebounded to 4.6 million in October. 

November arrivals declined 9% month-on-month but were still up 17% year-on-year. Provisional data shows December arrivals reached 4.7 million, up 11% from November and 9% from a year earlier. 

This brought total visitor numbers for 2025 to just under 50 million, an increase of 12% year-on-year. 

Mainland Chinese visitor volumes rose faster than overall arrivals, increasing 19% year-on-year.

Jefferies said the sustained recovery in visitor flows is an important lead indicator for life insurance sales to mainland customers, who account for a large share of new business in Hong Kong.

Data from the Hong Kong Insurance Authority (HKIA) shows a sharp rise in both new business and in-force premiums in recent quarters. 

Jefferies noted that whilst part of the increase may be linked to changes in data disclosure, there also appears to be a genuine uplift in sales, particularly through brokers and bancassurance channels. 

The firm said this could reflect insurers and intermediaries pushing sales ahead of regulatory reforms introduced in mid-2025.

One key reform capped upside assumptions used in policy illustration documents. Jefferies said this may have encouraged brokers to accelerate sales before the changes took effect, whilst more established agency-led insurers such as AIA and Prudential could benefit over time from tighter and more standardised disclosures.

The data also points to rising competitive pressure from banks. HSBC and Hang Seng emerged as major beneficiaries, with HSBC becoming the market leader in direct individual new business premiums by the third quarter of 2025.

Jefferies suggested some customers may be shifting funds from bank deposits into life insurance savings products, amidst expectations that interest rates will fall and reduce returns on traditional savings.