Hong Kong/China Insurance: 2026 Industry Observation: Driven by Leading Players

Research evidence excerpt

Hong Kong/China Insurance: 2026 Industry Observation: Driven by Leading Players

Idea

June 9, 2026 12:23 PM GMT

Morgan Stanley Asia Limited+MHong Kong/China Insurance | Asia Pacific Rick Zhao

Equity Analyst

2026 Industry Observation: Rick.Zhao@morganstanley.comRichard Xu, CFA +852 2239-7033

Richard.Xu@morganstanley.com +852 2848-6729

Driven by Leading Players Chenqian Liu

Research Associate

Chenqian.Liu@morganstanley.com +852 3963-0359

Greater disclosure in solvency reports improves industry

visibility. We expect diversified product strategies, optimized

investment allocation, and continued industry de-risking, with

limited system-wide risks. Leading insurers should sustain their

competitive edge. Hong Kong/China Insurance

Asia Pacific

China insurers must deliver solvency reports with more detailed operating metrics Industry View Attractive

from 1Q26, improving our ability to assess and track listed insurers’ performance

and the broader industry.

Large insurers leading par product transition towards more diversified product

strategy. Over the past two years, listed insurers have largely completed the

transition, with >80% of new premiums in par products in 1Q26. Many small and

medium-sized (SME) insurers have shown similar trends across channels. However,

many SMEs are now revisiting product strategies, with some reinvigorating

traditional product sales since 2Q26. We expect the pricing interest rate for current

par products to continue declining (from 1.75% to ~1.25%) over the next few

quarters, alongside the illustration rate. Large insurers may continue to focus on par

products, while SMEs adopt a more balanced mix between par and non-par. By

channel, large insurers could maintain their banca edge despite tighter regulation