Insurtech Talent Development in Hong Kong – From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline

2 From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline Preface Insurance has emerged as one of the most rapidly evolving sectors as a result of the ongoing technological disruptions in the financial services industry. The global insurance industry is witnessing promising opportunities driven by insurtech with a remarkable projected compound annual growth rate (CAGR) of 52.7% from 2023 to 2030.1 According to a study conducted by the Hong Kong Monetary Authority (HKMA), the three fintech verticals identified as the key focus areas for development in Hong Kong are wealthtech/ investech, greentech and insurtech, among which the insurtech sector in Hong Kong displays the highest interest (scored 8.1 out of 10) in fintech adoption.2 However, the results also show that insurance companies have the lowest level of maturity in terms of their internal fintech team arrangement, implying a lack of structured manpower and resource systems to meet the needs for insurtech development. To stay competitive in the expanding global digital landscape and to capitalize on opportunities unique to Hong Kong, the city must cultivate a digitally adept workforce and attract talent with the ability to embrace emerging trends, such as environmental, social and governance (ESG) and cross-sectoral collaboration, as well as to meet the growing demand for cross-border services within the Greater Bay Area (GBA) market. In 2022, we embarked on the study of insurtech talent development with the aim to gain a fuller understanding of the talent landscape of the insurtech sector in Hong Kong. Over the course of 18 months, we studied the trends and policies in different jurisdictions revolving insurance and insurtech talent. We gathered first-hand insights into the current manpower situation and talent requirements of Hong Kong’s insurtech sector through an industry-wide survey between March and April 2022, and organized the Insurance Industry Dialogue: Insurtech Talent and the Real Game Changer seminar in June 2023 to engage industry players and the regulator in the discussion of talent development approaches amidst the emerging trends and opportunities. 1 Grand View Research (2022). Insurtech Market Size, Share & Trends Report By Type (Auto, Business, Health, Home, Specialty, Travel), By Service (Consulting, Support & Maintenance, Managed Services), By Technology, By End Use, By Region, And Segment Forecasts, 2023 – 2030 . https://www.grandviewresearch.com/industry-analysis/insurtech-market 2 Hong Kong Monetary Authority (2023, August). A Bridge to the Future: Hong Kong Fintech Promotion Roadmap . https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2023/20230825e1a1.pdf