Hong Kong SMEs Face Significant Underinsurance Challenges, QBE Survey Reveals
Hong Kong – A new report from QBE Insurance highlights a concerning trend among Hong Kong’s small and medium-sized enterprises (SMEs): a substantial gap in insurance coverage, especially regarding potential business interruptions. The survey, which gathered insights from 600 business executives, underscores the need for improved risk management and financial preparedness within this crucial sector.
Business professionals in Hong Kong.
The survey revealed that a significant 65% of Hong Kong SMEs are concerned about income loss stemming from business interruptions. However, only 24% of these businesses have secured insurance to mitigate this risk. This disparity points to a considerable vulnerability for these companies, as they are exposed to potential financial strain from unforeseen events.
Rising property rental prices continue to be a major concern for Hong Kong SMEs. For the second year in a row, property rental costs topped the list of anxieties, cited by 67% of respondents – a slight increase from 64% in the previous year. Similarly, the survey showed that 65% of respondents were worried about losing employees, while 64% expressed concerns about equipment malfunction.
Andex Fung, the head of SME Segment, Asia at QBE, commented on the findings, noting that “Despite increased awareness of these risks, many SMEs remain underinsured.” This statement emphasizes the need for SMEs to reassess their risk profiles and proactive measures to protect themselves from severe financial losses.
Workplace Safety and Employee Well-being
The QBE survey also examined workplace safety and health (WSH), finding a positive trend in the communication of insurance coverage and benefits to employees. The percentage of companies informing employees about coverage increased from 90% in 2024 to 92% in 2025. Moreover, awareness of employee compensation insurance, a mandatory requirement under Hong Kong law, rose from 76% to 83% in the same period.
However, the survey also reflected a decline in the adoption of return-to-work policies. The number of businesses with these policies decreased from 86% to 82%. At the same time, the number of companies reporting WSH incidents increased from 22% to 25%. These mixed data streams show the need is to keep WSH a priority for Hong Kong SMEs.
Concerning employee well-being, the study revealed that mental health remains a top priority for Hong Kong SMEs. An overwhelming 95% of respondents acknowledged its importance, up from 94% last year. To support their employees, businesses are increasingly implementing flexible work schedules, like offering hours (46%, up from 39%) and work-from-home options (40%, up from 28%).
Talent Acquisition, Retention, and Older Workers
Talent acquisition and retention remain major challenges for the SMEs. A full 50% of respondents identified it as a key issue, a substantial increase from 39% in 2024. To address this, SMEs are turning to strategies such as pay raises and bonuses to retain skilled workers, with 43% prioritizing this approach compared to 29% the previous year. Flexible work arrangements are also becoming more common, with 39% of businesses now offering them, up from 26%.
For better job satisfaction among employees, other initiatives implemented included creating relaxation spaces to better support work-life balance. For the first time, the survey has also highlighted the attitudes toward older workers, who constitute nearly 14% of Hong Kong’s workforce. SMEs are significant employers of this demographic, with 49% reporting that at least 10% of their workforce is aged 65 or older.
Several employers recognize the valuable contributions of older workers, citing their experience (34%), high retention rates (26%), and loyalty (25%) as key strengths. This suggests an appreciation for experience which bodes well for the city’s employment landscape.
