Hong Kong’s job-hopping insurance workers may see bigger pay

They should expect a salary hike of as much as 15%.

Insurance workers in Hong Kong looking to change employers should expect higher salaries this year as companies scramble to fill vacancies amidst a talent shortage, according to headhunting experts.

Existing insurance workers should expect a 3% to 4% pay increase, whilst those changing employers could negotiate as much as a 15% hike, Dutch human resource (HR) consulting firm Randstad NV said in a job market outlook and salary guide released in January.

“Salary increments [in most industries] typically fall within the 3% to 5% range due to a conservative approach to compensation management,” Demi Poon, principal consultant of Insurance at Randstad Hong Kong, told Insurance Asia in a Zoom interview.

“However, when you switch employers, you enter a more competitive job market where companies are eager to attract skilled workers. This is often why they offer higher starting salaries to bring in talent,” she added.

Hong Kong salaries are expected to rise 4% across all industries in 2025, whilst half of the organisations polled plan to keep their headcount, New York-based HR consulting firm Mercer said in a January report.

Inflation and cost-of-living adjustments dictate salary increases for existing employees, whilst competition for talent drives up the compensation for new hires, Gary Chin, head of Rewards at Mercer Hong Kong, told Insurance Asia in an emailed reply to questions.

“Such competition can lead to higher salary increases for job changers as firms seek to fill vacancies quickly,” he said. “Industries such as the financial and insurance sectors in Hong Kong are amongst those that experience talent shortages.”

“This scarcity drives companies to offer better pay to appeal to new talent, resulting in more significant increases for job changers,” he added.

The insurance industry is expected to keep steady hiring activity in 2025 despite a sluggish economy, according to the Mercer report. It expects insurers to replace lost headcount and fill in new roles in distribution and operations, with broker and agent jobs driving growth.

Insurers seek middle to senior managers with experience for agents who will serve Chinese visitors from the mainland, Mercer said. Randstad said there is also interest in hiring assistant and junior managers.

“Employers are taking a more flexible approach to hiring and are open to accepting candidates who may not have a lot of insurance expertise but who have strong networks in mainland China, a solid foundation understanding of insurance products, and a willingness to learn,” according to the Randstad report.

British recruitment company Hays in January said 38% of businesses in Hong Kong plan to expand their workforce in 2025. The job of an insurance business analyst was the third-most in demand in its report.

“The insurance business analyst serves as a crucial bridge between the business and information technology functions by aligning expectations, providing valuable suggestions and enhancements to product development and operational processes,” Freeman Pang, manager of Insurance at Hays Hong Kong, told Insurance Asia in an email.

More for underwriters
Analysts who specialise in underwriting or claims can command higher salaries, he said, adding that people who have worked on automation projects are well-suited for the job. People with strong technical and communication skills may find it easier to transition to a product ownership or project management role.

Randstad expects 34% of Hong Kong employers to expand their sales and business development teams, 22% to target technology roles, and 16% to prioritise digital transformation and artificial intelligence (AI) positions.

“AI and generative AI will have a transformational impact on insurers, and many players are prioritising their efforts in this area,” Henrik Naujoks, head of Asia-Pacific financial services practice at Bain & Co., told Insurance Asia.

“However, most insurers haven’t deployed it at scale. One of the biggest challenges is the capability topic,” he added.

Chin said professionals in AI and digital transformation will be tasked to design and optimise tools to enhance customer engagement by providing instant support and information. “AI roles will also focus on leveraging predictive analytics to anticipate customer needs and behaviours.”

He said a potential economic downturn, automation, and shifting workforce dynamics could put a downward pressure on salaries.

Pang expects measured headcount growth. “However, we foresee sustained high competitiveness in specific talent areas, notably actuarial, underwriting, business transformation, technology risk/cybersecurity, and regulatory compliance.”