On November 30, 2023, Faculty of Finance of City University of Macau hosted the Finance Seminar Series [11] Hengqin-Macao Cross-border Financial Seminar(2) at the Ho Yin Convention Center. The lecture titled "Exploration of Cross-border Insurance in the Guangdong-Macao In-depth Cooperation Zone in Hengqin" featured Mr. Xue Gang, General Manager of the Health Insurance Division at Hengqin Life Insurance Limited, Product Development Department, as the guest speaker. Guests attending this seminar included Dean Adrian Cheung, Associate Dean Professor Eva Khong from Faculty of Finance of City University of Macau.
Hengqin Life Insurance Co., Ltd. was officially established in December 2016 and is the only national life insurance corporation registered in the Hengqin Guangdong-Macao In-depth Cooperation Zone. Hengqin Life is a distinctive enterprise rooted in the cooperation zone and deeply involved in the Greater Bay Area. It has solid governance, robust operational capabilities, and long-term value creation abilities. The company's strategic positioning focuses on providing insurance services for family protection and wealth management. In a rapidly changing market and environment, continuous product development is crucial to ensure the company's stable and sustainable growth. By innovating insurance and financial products within each business segment, Hengqin Life explores new paths for development, safeguarding families in the new era.
General Manager Xue elaborated on the practice and current situation of cross-border insurance. Currently, the social and economic development in the Greater Bay Area is at a high level, with a dense population. The average insurance depth and insurance density in the Greater Bay Area are 7.89% and 11,900 yuan/person respectively which are significantly higher than the national average. This indicates a considerable potential for growth. In terms of policies, the "Opinions on Financial Support for the Construction of the Hengqin Guangdong-Macao In-depth Cooperation Zone" (i.e., "Hengqin Financial 30 Measures"), announced in February 2023, strengthens insurance protection for residents in the cooperation zone. It supports collaboration between mainland China and Macao insurance institutions to develop special insurance products for residents in the cooperation zone, such as cross-border commercial medical insurance and elderly care. The policies also support the participation of the cooperation zone in the development of the Guangdong-Hong Kong-Macao Greater Bay Area Insurance Service Center and asset management industry. Therefore, the development of the modern insurance industry in the area enjoys unique policy advantages and scale benefits.
General Manager Xue pointed out that current cross-border insurance primarily revolves around the fields of medical health, accidents and elderly care protection. It aims to provide convenience for Macao residents working, studying and living in mainland China to access mainland medical and health services, while also offering high-quality medical services in Hong Kong and Macao for mainland customers. Short-term insurance are predominant in this context. Furthermore, General Manager Xue mentioned that in the future "insurance + healthcare" is expected to become a direction for the diversification and customization of elderly care insurance products. With a focus on enhancing health, insurance policies will be organized as group annuities by healthcare enterprises on behalf of customers. Insurance will play a role in increasing and preserving the value of funds, while healthcare institutions will provide customers with benefits and supporting services related to healthcare institutions.
After that, General Manager Xue shared the prospect for cross-border insurance, analyzing the business environment from macro-environment, industry environment and regional environment perspectives. Regulatory guidance and industry norm transformation were mentioned, highlighting their role in promoting the stable development of the insurance industry.
Knowing the customer value as the guiding principle, establishing service capabilities that cover major family life scenarios and enhancing product diversification while integrating with the development of the cooperation zone are of most importance. Using the regional advantages of the Guangdong-Hong Kong-Macao Greater Bay Area, exploring exclusive innovative products for the Greater Bay Area and deepening the layout of healthcare projects were emphasized. Drawing on market experience and collaborative cooperation with insurance institutions in Hong Kong and Macao, Hengqin Life aims to explore and develop exclusive mortality data and pricing for the Greater Bay Area, in order to offer life insurance products such as term life insurance, whole life insurance and endowment insurance tailored to the Hong Kong and Macao population living in mainland China, upgrading the scope and coverage of their protection.
After the sharing session, the students actively asked questions, and General Manager Xue patiently and thoroughly answered them. This lecture provided the students with an understanding of the development and prospects of cross-border insurance in the Guangdong-Macao In-depth Cooperation Zone. More importantly, they learned about the mindset, logic, and analysis involved in product development through General Manager Xue's insights, which greatly benefited them. Faculty of Finance would like to express gratitude once again to General Manager Xue for the excellent speech, and the students also expressed their excitement for the next cross-border financial lecture.