Hong Kong’s post-70s and post-80s generations say they are planning to buy insurance over the next 12 months because of concerns about their inability to pay for long-term medical expenses, according to the latest survey from Swiss Re.
The survey found 73% of Hong Kong respondents are concerned about paying medical expenses relating to major illnesses such as cancer. The percentage was higher than the 67% average for Asia Pacific.
It indicated about 60% are planning to buy insurance over the next 12 months, with 25% of them planning to buy investment-linked life insurance products. It also found 21% and 19% plan to buy medical insurance and insurance products respectively which cover serious illness compensation.
The survey also revealed that around 35% of Hong Kong respondents believe their family may struggle financially in the case of early death or other critical illnesses. Ninety-two per cent put this down to inadequate savings while 66% said inadequate insurance was the reason.
Meanwhile, 42% of Hong Kong respondents said their biggest barrier to insurance purchases was ‘no spare money’, followed with 31% citing the low returns they offer.
Clarence Wong, director, client markets, Asia said the post-70s and 80s generations represent a tremendous business opportunities for insurance companies. Wong added their willingness to take financial risks remains unchanged even after the global financial crisis. They ranked the second in their overall risk appetite in Asia-Pacific.
The survey interviewed 13,800 post-70s and 80s consumers in Asia Pacific while respondents from Hong Kong accounted for 1,000 people.