Hong Kong insurance firm staff heads for the exit and here’s why

The industry is on the cusp of a serious ‘brain drain’.

International insurers in Hong Kong are thinking about cutting back on operations during what probably is the worst talent shortage in the city, a survey by the Hong Kong Federation of Insurers.

One out of three international insurers are thinking about cutting back on operations due to staff shortages and 30% are mulling on relocating their global and regional team, leaving only a Hong Kong-focused staff behind.

The survey said many financial workers have left their jobs and moved out to other cities and Hong Kong has difficulties in replacing them due to strict restriction measures to curb the COVID-19 pandemic.

Hong Kong requires inbound travellers, even fully vaccinated ones, to undergo a quarantine period of up to 14 days

80% of firms surveyed have experienced high staff turnover in the actuary, IT, finance, and claims departments.

“Hong Kong insurers are losing staff at a rate much faster than the rate of recruiting replacements. The emigration and brain drain risks are now having a business impact on many insurance companies,” said Edward Moncreiffe, chairman of the HKFI

The HKFI said it will bring these issues up and give their recommendations to the Insurance Authority, which includes a proposal to bring down quarantine requirement to seven days and to allow returning residents to isolate at home rather than in hotels.

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