How 2026’s Changes Could Affect Your Health and Motor Insurance in Hong Kong
Hong Kong’s insurance market is being reshaped by pressure on the public health system, rapid electric‑vehicle adoption, and tighter regulation from the Insurance Authority. These changes affect how individuals, families, and employers should think about health and motor insurance in 2026.
Health insurance, VHIS and cross‑border living
Hong Kong’s tax‑funded public healthcare remains heavily subsidised, but longer waiting times and higher hospital charges are pushing more residents to explore private and international medical insurance. Voluntary Health Insurance Scheme (VHIS) plans are popular because they offer standardised hospital benefits, guaranteed renewal and the possibility of claiming a salaries tax deduction on eligible premiums (up to a capped amount per insured person under the Inland Revenue Ordinance).
At the same time, more people now live, work or receive treatment across Hong Kong, the Greater Bay Area and overseas, which makes gaps between local public systems and private cover more visible. A typical approach is to use public hospitals for emergencies, combine a VHIS‑certified plan for baseline local hospital cover and tax benefits, and add a top‑up or international medical policy for private rooms and cross‑border treatment.
Motor insurance, EVs and new driving technology
Hong Kong is moving quickly towards electrification of private cars, backed by a roadmap to end new fuel‑propelled private car registrations by 2035 or earlier and a range of EV incentives. By 2025, Transport Department data indicated that electric vehicles accounted for roughly 70 percent of new private car registrations, putting Hong Kong among the leading EV markets globally.
This shift has important implications for motor insurance. High‑voltage batteries, complex electronics and advanced driver‑assistance systems (ADAS) can increase repair costs, and insurers price this into premiums and excesses. Premiums for EVs and hybrids can vary significantly between insurers depending on claims experience, repair‑network agreements, and how each company rates risks such as automatic‑only licence holders, semi‑autonomous driving functions and telematics data.
Why regulation and advice matter more
As health and motor products become more technical, Hong Kong’s Insurance Authority has strengthened rules on product design, disclosure and sales practices. Guideline GL31 on medical insurance business and the Code of Conduct for licensed intermediaries require insurers and distributors to focus on fair treatment of customers, clear explanation of key exclusions and waiting periods, and suitability of recommendations.
For consumers, this means policy wording, disclosure duties and benefit limits are under more scrutiny but still require careful reading and, often, professional guidance. Independent, licensed insurance brokers in Hong Kong can compare different VHIS, international medical, EV and traditional motor policies across insurers, highlight how IA rules apply, and help clients align cover with their healthcare usage, driving patterns and cross‑border lifestyles.
