What are the advantages of insurance in Hong Kong compared with insurance in the Mainland?

The last time mainland tourists came to Hong Kong to purchase insurance was at a peak in 2016, with the total contribution of annual new premiums reaching more than HK$70 billion. Recently, according to JPMorgan Chase, with the customs clearance of Huizhong Port, the amount of insurance purchased by mainland tourists coming to Hong Kong can return to the pre-epidemic peak in 2023. Purchasing insurance in Hong Kong has once again become a hot topic of public opinion.

1. How to buy it?

Whether you should choose Hong Kong insurance or mainland insurance has recently become a hot topic of discussion. There are also many friends and clients around me who come to consult me ??on this type of issues. I have arranged Hong Kong insurance for many clients and personally accompanied them to Hong Kong for on-site handling. As far as my personal experience is concerned, the advice I give is: If your assets are all in China, you plan to live in China all the time, and you just want to buy protection insurance, then there is really no need to follow the trend.

2. There are three main reasons

1. First, don’t bother with it

Take critical illness insurance as an example. Before 2017, Hong Kong’s critical illness insurance , whether it is price or guaranteed content, it has certain advantages. However, after 2017, the mainland's critical illness insurance market began to "roll up", resulting in the price of Hong Kong's critical illness insurance having no advantage at all. In terms of coverage, both sides have their own advantages and disadvantages.

2. Secondly, it is too troublesome

The after-sales service of Hong Kong policies, such as changing information, paying fees, etc., is far less convenient than in the Mainland. Then there are things like medical insurance claims. If you are afraid of trouble, or your time is more valuable, it is not recommended.

3. Finally, it is difficult to withdraw and withdraw money

Especially for large amounts, because the foreign exchange policy does not support it, and China has now joined CRS (***Same reporting standards , officially known as the Standard for the Active Exchange of Financial Account Information), the information of these Hong Kong policy accounts will also be automatically exchanged back to the tax system on the mainland.

3. Who is suitable to buy Hong Kong insurance?

So, who is suitable to buy Hong Kong insurance? For those whose money is already outside and who most likely don’t want it to come back, my suggestion is that Hong Kong insurance and mainland insurance can be combined in a portfolio if we have sufficient funds and the capital inflow and outflow are in compliance. There should be a mutually complementary relationship between them, rather than a mutual PK relationship.

If any of our family members live and work overseas, or even have immigration needs, it is indeed necessary to configure some overseas insurance; but if our family members’ work, life focus, and asset focus are mainly Whether it is within the country, it is still recommended to use mainland insurance as the main insurance and Hong Kong insurance as the supplement.

That is to say, we often say that where the people are and where the risks are, planning should be done; where the property is and where the risks are, planning should be done.