QBE Survey: Hong Kong SMEs Face Risks With Limited Insurance Coverage
HONG KONG, March 18, 2025 – A recent survey by QBE Insurance highlights significant concerns for small and medium-sized enterprises (SMEs) in Hong Kong, particularly regarding financial risks and staff retention. The survey, conducted between November 2024 and January 2025, gathered insights from 600 business executives on various challenges and opportunities.
One of the most striking findings is the disparity between the risks businesses perceive and the insurance coverage they hold. While approximately one-third of the surveyed businesses expressed concern about financial losses due to business interruption, the loss of key staff, or equipment breakdown, only about a quarter have insurance policies designed to cover these potential setbacks. “Although we are seeing an increase in awareness of these risks, it is concerning that many SMEs are still underinsured,” said Andex Fung, Head of SME Segment, Asia at QBE. “Business owners should consider adequate protection against the full range of threats that can disrupt their operations.”
Key Concerns and Underinsurance
For the second year running, rising property rental costs remain the most significant worry for Hong Kong SMEs, with a 67% of respondents citing this issue. However, the data reveals that:
- 65% of businesses are worried about income loss from business interruption, while just 24% have insurance to mitigate this risk.
- 65% are concerned about the impact of losing staff, and only 19% possess relevant insurance coverage.
- 64% are worried about equipment malfunctions, and only 25% have insurance to cover this hazard.
Fung urged business owners to see insurers as partners able to provide advice and comprehensive risk management solutions to meet specific needs. “Overall, the cost of not having the right coverage in place can be far greater than the investment in protection.”
Workplace Safety and Health
Attention to workplace safety and health (WSH) issues remains prominent among Hong Kong SMEs. The survey showed that 92% of respondents communicate relevant benefits and coverage to their employees, up from 90% the previous year. Awareness of employee compensation insurance is also high: 83% of businesses stated that they are fully informed about this type of coverage, with 76% saying the same in 2024. Mental health issues are also relevant, with approximately 95% of the companies regarding the topic as essential. Moreover, more SMEs are implementing actions to improve the wellbeing of their employees: The survey detected that 46% of companies offer flexible working hours to improve work-life balance, up from 39% the previous year; 40% offer work-from-home arrangements, up from 28% in 2024.
Talent Retention Efforts Intensify
As competition for top talent heats up in Hong Kong, SMEs are giving greater attention to talent acquisition and retention strategies. The survey noted a significant increase in the percentage of SMEs concerned about these issues, with 50% identifying it as a key challenge compared to 39% in 2024. The most common strategy for staff retention is increasing pay and bonuses(43%), followed by more flexible work schedules (39%). Also, many companies offer special spaces for their employees to relax in or for recharging purposes. The survey also examined businesses’ attitudes towards older workers, who are a substantial part of the workforce, the survey reveals, with Hong Kong SMEs actively employing a notable number of workers aged 65 and above.
