Even against the backdrop of economic turmoil, AIA and Prudential say they are hiring more aggressively this year. The number of insurance sales staff had risen 16 per cent to 122,769 by the end of March, after 16,943 newcomers joined the industry in the previous 12 months. The insurers’ hiring spree is in contrast to other industries which are laying people off, leading the jobless rate to hit a 15-year high of 5.9 per cent in the March to May period.
Hong Kong’s economy shrank 8.9 per cent year on year in the first quarter, the worst slump since records began in 1974. It has received multiple blows, including the protracted US-China trade war, a year of anti-government protests and the Covid-19 pandemic.
The expansion within the insurance sector is potentially good news for 232,400 jobless in the city, as the industry may be able to offer some of them a second career.
AIA, the largest life insurance company in Hong Kong, plans to hire 6,000 more agents this year, 1,000 more than its average annual recruitment count.
AIA’s hiring target also reflects its confidence in the bay area project – Beijing’s plan to integrate Hong Kong, Macau and nine mainland Chinese cities into an economic powerhouse. Insurance was a major sector mentioned in the blue print revealed last year. Insurers want to expand because they believe the current health crisis will lead more people to buy policies to protect their family.
They are also optimistic that an “Insurance Connect” scheme – similar to existing cross-border initiatives like Stock Connect and Bond Connect – being considered as part of the Greater Bay Area project will bring them more business in the long term.
An “Insurance Connect” would initially allow them to set up servicing centres in bay area cities to collect premiums, handle claims and even distribute simple insurance products in the future.
Mainland Chinese are big spenders in the local insurance sector. At the peak, they bought HK$72.68 billion (US$9.4 billion) in insurance policies in Hong Kong in 2016, about 39 per cent of all premiums collected in the city. This declined to only HK$5.4 billion in the first quarter of this year, down 58 per cent year on year as the pandemic prevented mainland residents from coming to the city to shop for insurance products. The opening up of the bay area provides hope of a turnaround.
They are also optimistic that an “Insurance Connect” scheme – similar to existing cross-border initiatives like Stock Connect and Bond Connect – being considered as part of the Greater Bay Area project will bring them more business in the long term.
An “Insurance Connect” would initially allow them to set up servicing centres in bay area cities to collect premiums, handle claims and even distribute simple insurance products in the future.
Mainland Chinese are big spenders in the local insurance sector. At the peak, they bought HK$72.68 billion (US$9.4 billion) in insurance policies in Hong Kong in 2016, about 39 per cent of all premiums collected in the city. This declined to only HK$5.4 billion in the first quarter of this year, down 58 per cent year on year as the pandemic prevented mainland residents from coming to the city to shop for insurance products. The opening up of the bay area provides hope of a turnaround.
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