Morgan Stanley has released a research report stating that recent exchanges with insurance companies and frontline sales channels indicate that regulatory pressure on bancassurance in Hong Kong and the mainland may only be a short-term phenomenon, while underlying demand remains strong. Third-quarter performance outlook and investment behavior are key areas of recent focus, and large insurance companies are expected to continue expanding their market share in 2027.
The report notes that third-quarter sales momentum was weak, particularly in the bancassurance segment, mainly due to regulatory restrictions and a slowdown in sales pace following strong growth in the first half of the year. Despite the high base, "good start" sales were mainly concentrated in the early period. The report expects that individual insurance companies will set differing sales targets for the 2027 "good start" campaign.
The report mentions that despite commission restrictions, banks remain optimistic that insurance demand growth will outpace the growth rate of wealth management assets under management, driven by strong demand and attractive products. On the asset side, given market volatility, some insurance companies are more inclined toward high-dividend stocks, and new asset-liability management rules may further guide investment behavior.
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