Media365
Hong Kong’s rapidly greying population is creating both policy headaches and fresh business opportunities, from stronger demand for health insurance and retirement products to a growing market for medical services across the border, according to industry leaders.
“The ageing population of Hong Kong brings challenges, but at the same time it also adds new business opportunities,” said Stephen Yiu Kin-wah, chairman of the Insurance Authority, at the Asian Insurance Forum on Monday.
The government projects that by mid-2036, the city will have 2.4 million elderly residents – around one-third of the population. As more people grow older, Hong Kong faces mounting pressure on public healthcare, which already accounts for 8.3 per cent of gross domestic product, official data shows.
To ease the burden, the government in 2019 introduced tax incentives to encourage residents to buy policies under the Voluntary Health Insurance Scheme (VHIS), Undersecretary for Health Cecilia Fan Yuen-man said at the forum.
“We hope to encourage those who can afford to get the VHIS to cover their medical expenses, whereas the government can focus on those who are poor and have more serious or critical conditions,” Fan said.
She added that the VHIS had proven popular, with many policyholders willing to pay extra for plans that offered more comprehensive coverage than the standard options.
The demographic shift has also prompted financial institutions including Manulife, HSBC and BOC Life to roll out new products in recent months that provide regular income streams for retirees.
