A recent survey conducted by Prudential Hong Kong Limited has found that less than four in 10 individuals feel equipped to manage unforeseen medical expenses.
The Hospitalisation Coverage Survey, released on July 10, indicated that only 36% of participants are confident in their ability to address unexpected healthcare costs.
This sense of preparedness drops further among older adults, with just 29% of those aged 51 and above expressing financial readiness for medical emergencies.
The findings revealed that most respondents rely on a combination of medical insurance, personal savings, and public healthcare to cover medical bills.
Specifically, 68% depend primarily on insurance, 65% on personal savings, and 46% on public healthcare services.
Despite these resources, a significant portion of policyholders still report feeling vulnerable to the financial impact of illness.
The survey also highlighted persistent concerns among those already holding medical insurance policies.
Sixty percent of respondents are apprehensive about increasing premiums, while 44% are worried that premiums may go unused if no claims are made.
Additionally, 40% believe their current coverage does not fully address their medical needs, particularly in areas such as rehabilitation therapies and traditional Chinese medicine.
Financial stress is further compounded by chronic health conditions.
Two-thirds of respondents cited ongoing treatment and hospitalisation costs for chronic illnesses as a major concern.
Long-term care expenses and the potential impact of illness on family members are also significant worries, reported by 65% and 60% of participants, respectively.
These trends underscore a widespread perception that existing insurance products may not provide adequate protection against the full spectrum of healthcare costs.
The survey identified a notable gap in hospital cash plan adoption.
Only 29% of respondents currently have hospital cash coverage, in contrast to higher uptake rates for critical illness (64%) and savings life insurance (61%).
Among those with hospital cash plans, 73% believe coverage should extend at least to age 75, and 42% prefer lifetime protection.
However, most policyholders receive daily cash benefits below HK$1,200, and only a fifth consider this amount sufficient for their needs.
These findings point to a growing demand for hospital cash products that provide more comprehensive and longer-term financial support.
The data suggested that awareness of hospital cash benefits remains limited, and that current offerings may not fully align with policyholders’ practical requirements.
In response to these insights, Prudential Hong Kong Limited has launched the Encash Hospital Cash Savings Insurance plan.
The product is designed to offer whole-life health and life protection, with features including daily hospital cash benefits, lump-sum payouts for long-term hospitalisation, and coverage for conditions such as severe dementia, Parkinson’s disease, and severe diabetes.
The plan also incorporates a guaranteed cash value that increases over time, as well as a non-guaranteed terminal bonus.
Felix Fung (pictured), chief product officer at Prudential Hong Kong Limited, said the new plan aims to address the gaps identified in the survey by providing customers with lifelong protection and opportunities for wealth accumulation through a limited premium payment period.
“This empowers individuals to safeguard their health and build a stronger financial foundation to flexibly meet their evolving medical and financial needs throughout different life stages,” he said.
The policy offers daily hospital cash benefits for eligible hospital stays, enhanced benefits for intensive care unit admissions, and a one-time benefit for specific long-term illnesses.
Flexible premium payment terms and exclusive underwriting guidelines for certain medical conditions are also included.
Candy Au Yeung, chief customer operations and health officer at Prudential Hong Kong Limited, stated that the company’s goal is to meet customers’ long-term protection needs and alleviate the financial pressures associated with illness.
“Looking ahead, Prudential remains dedicated to standing by our customers when they need it most, delivering thoughtful and comprehensive health solutions to meet their diverse needs,” she said.
The release of the survey coincides with projections for continued growth in Hong Kong’s general insurance sector.
According to GlobalData, the market is forecast to reach HK$85.4 billion (US$10.9 billion) in gross written premiums by 2029, representing a compound annual growth rate of 5.1%.
Health-related insurance remains a leading segment, with personal accident and health policies expected to account for 34.7% of general insurance premiums in 2025.
