The Zhitong Finance App learned that Hong Kong Insurance Regulatory Authority Chief Executive Zhang Yunzheng said that Hong Kong is entering a super-aged society, but only about half of Hong Kong's population of about 7 million has insurance, and the rest must rely on government care. Among the elderly aged 65 or above, only 20% are covered by insurance. He pointed out that currently insurance only accounts for about 16% of Hong Kong's overall medical expenses, while government subsidies are as high as 51%. Facing an annual medical inflation rate of about 10%, it will be difficult for the Hong Kong government to support it alone in the long run, and the industry and all parties must strengthen cooperation to narrow the coverage gap.
Zhang Yunzheng said that the Insurance Regulatory Bureau's supervisory management concept is shifting from simple “regulation” to seeking “collaboration” and actively cooperating with all parties to promote product innovation. As an example, the authorities supported insurance companies to launch annuity plans to help Hong Kong people retire in the north, but there are differences in the systems between the two places. In the future, it is necessary to gradually open up welfare payment systems, connect medical records, and cooperate with cross-border non-emergency ambulance services to ensure that Hong Kong people can return to Hong Kong for medical treatment in a timely manner when needed.
In terms of dealing with climate risk, Zhang Yunzheng mentioned that the Insurance Regulatory Bureau is cooperating with academia to promote a “climate model project” to improve data quality through scientific research to help the industry develop parametric insurance products with low risk of basis differences and easy to understand.