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Higher Salaries for Hong Kong Insurance Workers

by Celia

Insurance professionals in Hong Kong considering a job change are set to benefit from increased salaries in 2025, with some able to negotiate pay hikes of up to 15%, according to experts.

As companies scramble to fill vacancies amid a talent shortage, those switching employers will find a more competitive job market, pushing companies to offer attractive salary packages. Existing insurance workers can expect a pay rise of 3% to 4%, while those changing jobs may secure significantly higher offers, said Randstad NV, a Dutch human resources (HR) consulting firm, in its January job market outlook.

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Demi Poon, principal consultant of Insurance at Randstad Hong Kong, explained in an interview that salary increases in most industries tend to range from 3% to 5% due to conservative compensation policies. However, job switchers are likely to secure higher starting salaries, as employers compete for skilled talent.

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In its global salary report, Mercer, a New York-based HR consulting firm, predicted a 4% rise in salaries across all industries in Hong Kong in 2025. Half of the companies surveyed said they plan to maintain headcount levels, with inflation and cost-of-living adjustments dictating pay increases for existing employees, while talent shortages drive up salaries for new hires.

Gary Chin, head of Rewards at Mercer Hong Kong, noted that competition for skilled workers, especially in sectors like financial services and insurance, is intensifying. “Such competition leads to higher salary increases for job changers as firms move quickly to fill vacancies,” he said.

Hiring Activity in Insurance to Remain Steady Despite Economic Uncertainty

The insurance industry in Hong Kong is expected to continue hiring in 2025, even amid a sluggish economic climate. The Mercer report forecasts steady recruitment as insurers replace lost positions and fill new roles in distribution and operations, particularly in broker and agent positions.

Insurers are seeking middle to senior-level managers with expertise in handling Chinese clients from mainland China. Randstad further highlighted a growing demand for assistant and junior managers. Employers are increasingly open to candidates without extensive insurance experience, but with strong networks in mainland China, a solid understanding of insurance products, and a willingness to learn.

Demand for Specialized Insurance Roles

In addition to senior management roles, the demand for specialized positions is also on the rise. According to British recruitment firm Hays, 38% of Hong Kong businesses plan to expand their workforce in 2025. Among the top positions in demand is that of an insurance business analyst, a key role that bridges business and technology functions.

Freeman Pang, manager of Insurance at Hays Hong Kong, explained that business analysts are crucial in aligning expectations and enhancing product development and operational processes. Those with experience in automation projects or technical skills are expected to command higher salaries, especially if they transition into product ownership or project management roles.

Insurance Industry’s Focus on Technology and Digital Transformation

Randstad’s report highlights that 34% of Hong Kong employers are looking to expand their sales and business development teams, with 22% focusing on technology roles and 16% prioritizing positions related to digital transformation and artificial intelligence (AI).

Henrik Naujoks, head of the Asia-Pacific financial services practice at Bain & Co., said AI and generative AI will have a significant impact on the insurance sector, but many firms are still in the early stages of deployment. He noted that one of the biggest challenges insurers face is developing the necessary capabilities for AI integration.

Chin emphasized that AI professionals will be instrumental in designing and optimizing tools for customer engagement, such as providing instant support and using predictive analytics to anticipate customer behavior.

Competitive Talent Landscape and Future Challenges

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Despite potential economic downturns and the rise of automation, competition for specialized talent in areas such as actuarial science, underwriting, business transformation, and cybersecurity will continue to drive salary growth in certain sectors. Pang anticipates measured headcount growth but expects high competitiveness in these critical areas.

With the continued pressure to attract top talent and adapt to evolving technological demands, insurance companies in Hong Kong are poised to offer higher salaries and more flexible hiring approaches in the year ahead.

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