Hong Kong Insurance Authority: Insurance accounts for only 16% of Hong Kong's healthcare expenditure; amid high medical inflation, multi-party collaboration must be strengthened.

Clement Cheung, Chief Executive Officer of the Hong Kong Insurance Authority, said that Hong Kong is entering a super-aged society, but only about half of Hong Kong's approximately 7 million population holds insurance, with the rest having to rely on government care; among those aged 65 or above, the proportion covered by insurance is only 20%. He pointed out that insurance currently accounts for only about 16% of Hong Kong's overall healthcare expenditure, while government subsidies account for as much as 51%. Facing an annual medical inflation rate of about 10%, the Hong Kong government will find it difficult to sustain this alone in the long run, and the industry and all parties must strengthen collaboration to narrow the protection gap. Cheung said that the Insurance Authority's regulatory philosophy is shifting from purely "regulation" to pursuing "synergy," actively working with all parties to promote product innovation. As an example, he said the authority supports insurers in launching annuity plans that cater to Hong Kong people retiring in the mainland, but given the differences between the two systems, future efforts must gradually connect the welfare payment systems, achieve interoperability of medical records, and complement cross-border non-emergency ambulance services to ensure Hong Kong people can return to Hong Kong for medical treatment in a timely manner when needed. In addressing climate risk, Cheung mentioned that the Insurance Authority is collaborating with academia to promote a "climate modelling project," leveraging scientific research to improve data quality and help the industry develop parametric insurance products with low basis risk that are easy to understand.