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S&P expects Hong Kong life insurers to grow premiums 8% to 10%
S&P said the tax-related rules could cause a temporary sales slowdown to mainland customers, but it expects underlying demand for offshore diversification to remain intact.
Hong Kong life insurers are expected to continue growing premiums at an annual pace of 8% to 10% over the next two years, despite a recent regulatory shift linked to Beijing’s overseas taxation rules, according to S&P Global Ratings as described by SCMP Economy.
S&P said it expects a temporary slowdown in sales to mainland customers as some clients reassess offshore investment choices, while warning that near term volatility could increase.
In its view, the core demand behind the business remains durable, including multi-currency asset diversification, offshore wealth management, and healthcare and protection.
SCMP Economy noted that Beijing’s taxation bureau said the scrutiny reflected an existing tax rule rather than a new policy, but market anxiety rose as local enforcement intensified and cross-border information sharing under the Common Reporting Standard increased the visibility of offshore assets.