The first quarterly report from the Hong Kong Federation of Insurers (HKFI) reveals the answer to the mystery: new policy premiums in Hong Kong surged by 43.1% year-on-year, the highest quarterly figure since records began in 2001. What is more noteworthy is that the share of policies contributed by mainland visitors has reached 28.6% - meaning that one out of every three new policies is from mainland customers!

Mainlanders taking out insurance policies in Hong Kong in the first half of 2025 exceeding HK$50 billion (a big jump year-on-year), close to the total for the whole year of 2023 ($59 billion) 
Expected to top $70 billion for the year, or surpass 2016's $72.7 billion all-time peak 
New policy premiums in Hong Kong exceeded HK$310 billion (up about 5% year-on-year), with savings products accounting for more than 90%

This heat is no coincidence. 2025 Hong Kong savings participating insurance average annualized return maintained at 5.2%-6.8%, while the average level of similar products in the Mainland is only 3.5%, the gap of 2-3 percentage points in the compounding effect, will evolve into an amazing wealth gap!

Taking the principal of RMB 1 million as an example, according to the compound interest of Hong Kong product 6%, the principal and interest will be about 5.74 million after 30 years, while according to the mainland's 3.5%, it will be only 2.8 million, which is a difference of nearly 3 million. If held for 50 years, this figure will expand to tens of millions or even hundreds of millions, which is exactly the miracle created by "time + compound interest"!
This urgency was amplified by the window of regulatory policy. from July 1, the Hong Kong Insurance Authority lowered the demo rate cap for US dollar policies from 7% to 6.5%, which means that with the same investment of US$50,000, the 30-year income demo will shrink from US$1.56 million to US$1.24 million, a difference of over US$300,000. Savvy investors smelled the opportunity, which led to the spectacle of "lining up with suitcases to sign"!

Who is suitable to buy Hong Kong insurance

1. Families with medium- to long-term asset allocation needs

The core advantage of Hong Kong Savings and Participation Insurance lies in the long-term release of compound interest effect, which usually needs to be held for more than 10 years in order to show the obvious income advantage. For families planning to reserve for children's education and pension, these products can be called "time friends".

For example, if a 35-year-old parent takes out a $50,000 savings insurance policy for their newborn child and pays the premiums over five years, the cash value of the policy can reach about $150,000 by the time the child is 25 years old, which can cover the cost of studying abroad and the remaining funds can be used as start-up capital for a business. According to the data of an insurance company, the actual dividend rate of a similar policy sold in 2010 is 0.3% higher than the demonstration value up to 2025, which confirms the reliability of long-term holding.

There are two prerequisites to be met by this groupThe first is that the funds will not need to be used for 5-10 years, and the second is that short-term fluctuations in returns are acceptable. Those who want to "get in and get out" may be better suited to more liquid financial options

2、Ordinary people who have the need for dollar asset allocation

For ordinary investors who are unable to hold US dollars through offshore property purchases and US stock investments, the Hong Kong dollar policy is a low-threshold globalization tool. It does not require complex foreign exchange operations and a single policy can achieve currency diversification.

83% of Hong Kong policies taken out by mainlanders in 2025 choose to be denominated in US dollars. Behind this is the plain logic of "not putting eggs in one basket" of family assets - when RMB assets face volatility, dividends and claims payments from USD-denominated policies can serve as a buffer. Research by a third-party organization shows that families with foreign currency policies have 40% more asset stability than single-currency families during periods of exchange rate volatility.

Suitable people include:Those with overseas spending plans (e.g. children studying abroad), those engaged in cross-border trade, and middle- to high-income families concerned about long-term exchange rate risk.However, it should be noted that although the threshold of $10,000 is not high, it is still necessary to reasonably allocate the proportion according to the total assets of the family, and it is recommended that the allocation of foreign currency assets should not exceed 30%.

3、High net worth people who are concerned about high-end medical insurance

Hong Kong high-end medical insurance is known for its global medical network and broad coverage, covering private hospitals, overseas treatments, targeted drugs and other items that are often exempted in mainland products.

2025 data shows that among the Hong Kong medical insurance policies purchased by Mainland customers, 72% opted for the "Global ex-US" protection plan, with annual premiums concentrated at US$20,000 to US$50,000 per year.

These products are particularly suitable for two groups of people: firstly, those who have the need for regular overseas medical treatmentHong Kong policies can be directly billed to medical institutions in more than 120 countries around the world;Secondly, those who are concerned about the comprehensiveness of critical illness protectionThe definition of "cancer in situ" and "coronary artery bypass grafting" is more liberal and the threshold for claims is lower.

According to the terms and conditions of a star product, its cancer treatment coverage includes cutting-edge technologies such as Proton Heavy Ion Therapy and CAR-T Cell Therapy, and the annual sum insured is as high as HK$50 million, which is difficult for similar products in the Mainland to reach. However, it should be noted that this type of product has very strict requirements on policyholders' health notification, and those with pre-existing conditions need to be prepared for underwriting in advance.

4. Families with cross-border inheritance needs

According to the Insurance Companies Ordinance of Hong Kong, the policy compensation can be paid directly to the beneficiaries without the need to go through the complicated notarization of inheritance in the Mainland, which is particularly suitable for families whose assets are distributed in the Guangdong, Hong Kong and Macao Greater Bay Area.

After the implementation of the newly revised Personal Information Protection Law in 2025, the information declaration for cross-border transfer of assets by mainland residents will be more stringent, while the "non-inheritance" nature of Hong Kong insurance policies makes them more private when inherited. Data from a family office shows that the average inheritance cost of assets inherited through insurance policies is 60% lower than that of traditional inheritance methods, and the time taken is shortened from 1-2 years to 1-3 months.

Suitable people include:People with cross-border assets, families with many children who wish to avoid inheritance disputes, and high net worth individuals considering immigration planning. However, it should be noted that beneficiaries who are Mainland residents are still required to comply with foreign exchange regulations when receiving claims in US dollars.

If you can not accept the long-term holding, want to 10 years 8 years or so to get 7% returns, will be disappointed, because according to most of the products in the market 8 years may be expected to return just back to the capital of the state, at this point, when you open your insurance division APP to see and when the first time to pay in almost the same premiums, exclaimed! Liar! Then you turn around and spout "Hong Kong insurance scam!" on your own social media, "harvesting the middle class" and "the middle class". The headlines such as "Harvesting the middle class" and "Hong Kong insurance scam" are not very real.

We brushed on the network of the relevant title of the post, clicked in 99% are such a situation, the policyholder in the policy did not have a specific understanding of the form of the product, income, the expected return of capital, the rate of realization and other related issues, only to 7% income blindly chose the choice.

Instead of being a scam, one's heart is so big and the AGENT one meets is so unreliable that the policyholder doesn't understand the product well enough to really get the intrinsic value of the policy's assets.

We have a professional team to do specific communication with you to help you tailor-made insurance plan, the whole process to assist you to complete the insurance payment, to help you better manage their own policies, if you need to contact our online customer service!