Zurich Life Insurance Recorded Double APE Growth in 2024 To Launch Index-based Universal Life and Other Innovations

Zurich Insurance (Hong Kong) (“Zurich”) announces its life insurance business results, presenting impressive performance with a year-on-year doubling of annual premium equivalent (APE). Zurich upheld its market-leading position in investment-linked assurance scheme (ILAS) products, with its market share in the independent financial services (IFA) distribution channel rising to 45% in the first three quarters of 2024, up from 35% in the same period in 2023. Additionally, the savings insurance business with remarkable performance emerged as a new driving force of Zurich's life business, in particular, the sales of the "Swiss Fortune Universal Life Plan" increased 20 times year-on-year.

Peter Yuan, Acting Chief Executive Officer of Life Insurance, Zurich Hong Kong, said, “Zurich’s life business achieved multiple milestones and significant growth last year, demonstrating our agility in adapting to market changes. Our successful implementation of channels and products diversification strategies has garnered overwhelmingly positive feedback from the market and customers as well. Notably, customer net promotor score increased by 15% year-on-year, accompanied by phenomenal growth in sales among visitors to Hong Kong,” he added, “we are honored that our efforts in product offerings and environmental, social, and governance (ESG) initiatives have been recognized in the industry. Our Swiss Fortune Universal Life Plan received the “Life & Wealth Management Insurance - Excellence Performance” from Bloomberg Businessweek/Chinese, marking a significant three-year winning streak. Zurich has also been recognized with the “Excellence in ESG and Sustainability Award” at the Hong Kong Insurance Awards organized by the Hong Kong Federation of Insurers for the third year in a row.”

Key metrics fulfilled for life business

With growing offshore investment demand from Mainland China investors, market analysts¹ estimate that private wealth assets under management will nearly double to USD 2.3 trillion by 2030. In response to the opportunity, Zurich actively expanded its offshore business since last year, with APE from visitors to Hong Kong accounted for nearly 30% in life business, primarily driven by Mainland Chinese visitors. Notably, APE from this segment surged 17 times year-on-year, with policies successfully issued for the New Capital Investment Entrant Scheme.

Meanwhile, Zurich achieved multiple business milestones, including the launch of the “Swiss Fortune Universal Life Plan”, which is Zurich’s first savings product in nearly a decade. Zurich also implemented a diversified sales channel strategy, resulting in a year-on-year growth at around 70% in the number of brokers, which doubled APE generated through broker channel. Furthermore, online channel sales rose nearly threefold year-on-year, successfully attracting customers who prefer self-service online with simple life products.

In the ILAS segment, Zurich upheld its position as a market leader in offering ESG investment options², supporting clients in responsible investing and aligning with its commitment to green finance and sustainability.

Strengthening manifold strategy in 2025

The Hong Kong government has actively positioned the city as a global wealth management center, and has reiterated its commitment in its latest budget to fostering the development of the asset and wealth management industries. The government has already introduced and enhanced measures such as the New Capital Investment Entrant Scheme to attract asset owners to settle in Hong Kong and explore investment opportunities. Zurich will continue to support the government policies, with two products already qualified for the scheme.

On the other hand, Zurich is actively involved in regulators’ consultation for indexed universal life (IUL) products. Upon the release of relevant guidelines, Zurich will leverage its experience and strengths in ILAS, in conjunction with Group's experience in similar products, to introduce IUL at the opportune moment. As the market fragments, Zurich will continue to diversify its products and sales channels to reach a broader customer base, such as launching innovative personal accident insurance plan that features premium rebates, introducing innovative savings plans, and delivering tailored protection for Hong Kong residents frequenting the Greater Bay Area. In addition, to maintain its leadership in ILAS while enhancing service quality, Zurich will introduce an all-rounded customer service upgrade, including the OneZurich online platform which allows instantly changes to policy details, as well as other initiatives such as streamlining policy issuance and claims processes, promoting paperless transactions, and upgrading its customer service platforms on WhatsApp and WeChat.