Mainland Chinese deposits surge as Hong Kong insurers gain

End-2024, Hong Kong’s MCV insurance market reached HK$62.5b (US$8b).

The rise of Mainland Chinese household deposits in foreign currency could drive growth for Hong Kong insurers, particularly in selling US dollar-denominated insurance products to mainland Chinese visitors (MCVs), according to CGS International.

The household deposits in foreign currency rose by 17%, or US$22.1b, between November 2024 and June 2025—the strongest seven-month increase since early 2017. 

By the end of 2024, Hong Kong’s MCV insurance market reached HK$62.5b (US$8b) in new business premiums and HK$48.4b in annualised premium equivalent (APE), with in-force APE premiums at HK$147b.

The average regular premium policy sold to MCVs in 2024 stood at over US$27,000, nearly three times 2018 levels. 

Despite MCV tourist arrivals in Hong Kong still 35% below first half 2019 levels, the pace of recovery is improving, with second quarter 2025 visitor growth rising 15% year-on-year, up from 6% in first quarter this year. 

A weaker Hong Kong dollar against the renminbi is seen as a contributing factor.

CGS International also expects strong value of new business through fiscal year 2027 and stable capital positions.