The spending on life insurance products in Hong Kong by Chinese mainlanders slumped drastically in the first nine months of 2020 due to severely curtailed numbers of people crossing the border.
According to a report by South China Morning Post, mainlanders spent a total of HK$6.5bn ($833m) on life and annuity policies in Hong Kong between January and September 2020, a decline of 82% from the same period a year ago.
Data from the Insurance Authority says the decline was sharper than the 76% year on year fall recorded in the first half. Mainlanders accounted for 6.6% of the overall spending on these products.
The biggest sequential decline was recorded between 1 April and 30 June 2020 when stringent restrictions to contain the virus were implemented. During that period, mainlanders spent only HK$839m on life insurance products in Hong Kong, down 85% from HK$5.4bn in the first quarter.
Around 48% of the insurance policies taken out by mainlanders in the city in the nine months were for critical illness, 36% were life products and 5% were medical insurance.
The number of visitors to the city dropped 99.8% to 4,855 in October, while that in the year’s first 10 months it plunged 93.2% to 2.7m according to Hong Kong Tourism Board.
Sales of life and annuity premiums recorded in the local Hong Kong market fared much better, falling only 11% to HK$84bn in the first nine months.