Hong Kong SMEs lack adequate insurance vs key concerns: report

Only 24% have protection against equipment damage despite it being a top risk.

Whilst majority of Hong Kong SMEs have purchased some form of insurance protection, their key risks concerns tend not to be covered, according to a QBE report.

Even with three-fifths (65%) saying that equipment breakdown is their top risk concern, only 24% admitted to having relevant insurance coverage for it. The same goes for other top concerns such as property damage (61%) and loss of vital staff (59%) where 31% and 10% have relevant protection for these risks, respectively.

Price appears to be the main concern in terms of insurance (57%), with 39% tending to rely on advice from other people and 38% perceiving business insurance to be “too complex” to understand.

SMEs also lack protection against cyber risks amidst the digital surge. Whilst 53% have accelerated their digitisation due to the pandemic, three-fourths are not fully informed about possible risks and one in four don’t even have relevant protection.

Only 28% of small businesses would consider buying cyber-security insurance as the cost may be too high to be worth the investment.