Hong Kong SMEs concerned about numerous business risks, but few invest in protective measures, unearths QBE annual survey

• Around one-third of businesses are concerned about the financial fallout from business interruption, loss of key staff, and equipment breakdown — while only about one quarter hold insurance policies that cover these.
• Attention to workplace safety and health issues remains high, with more communicating their coverage and benefits to employees.
• The proportion of Hong Kong SMEs with a staff retention plan has notably increased, with increased pay the number one strategy for keeping staff.
• Hong Kong SMEs are a major employer of workers aged 65 or older, with 49% saying their workforces are made up by 10% or more of this demographic.

HONG KONG, March 18, 2025 /PRNewswire/ -- QBE Insurance today announced a second and final batch of key findings from this year's QBE Hong Kong SME Survey. Between November 2024 and January 2025, 600 Hong Kong business executives voiced their thoughts on multiple business risks and opportunities, including workplace safety and health (WSH), talent retention, and insurance-related issues, among others.

A notable takeaway from this year's edition is how most business leaders have concerns about a wide range of businesses risks, yet very few hold insurance policies to protect their companies against these. For the second year running, anxiety over rising property rental prices was cited by 67% of respondents as the number one business concern, up from 64% in 2024. More interestingly however, was how 65% of businesses said that loss of income due to business interruption was a key business concern, while just 24% hold insurance policies to shield them from this risk. Similarly, 65% and 64% of respondents are concerned about the impact of losing staff and equipment malfunction respectively, with only 19% and 25% having insurance to cover these issues. 

"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. We understand that many SMEs have expressed concerns over increased costs and reduced profitability this year, but we would urge them to consider insurers like us as partners who can help businesses navigate these challenges – by offering advice and comprehensive risk management solutions tailored to their specific needs. Overall, the cost of not having the right coverage in place can be far greater than the investment in protection."

An increased focus on work safety and mental health

Attention to WSH is rising overall, this year's survey found. Some 92% of respondents said they communicate coverage and benefits to their employees, versus 90% last year. Similarly, 83% in 2025 said they are aware of employees' compensation insurance — coverage that is compulsory under Hong Kong law — with 76% saying the same in 2024.

However, the number of businesses with return-to-work policies dropped slightly year-on-year, from 86% to 82%. And the proportion of Hong Kong SMEs that had experienced between one and three WSH events marginally rose from 22% in 2024 to 25% in 2025.

Hong Kong SMEs remain focused on mental health. Some 95% of respondents said it is either very important or somewhat important, comparable to 94% last year. To this end, more SMEs are implementing measures to improve both mental and physical wellbeing, with 46% offering flexible working hours for improved work-life balance, up from 39% last year; and 40% offering work-from-home arrangements, rising from 28% in 2024.

Talent acquisition and retention efforts remain high

As the battle for top talent intensifies in Hong Kong, SMEs are placing more emphasis on recruitment, training, and retention. The survey revealed a marked increase in the percentage of SMEs concerned about these issues, with 50% of respondents identifying it as a key challenge, up from 39% in 2024. This rise demonstrates how talent management has become a growing priority for businesses striving to maintain competitiveness in a rapidly changing market.

Increased pay and bonusses is key to keeping the best skilled staff in the business, with 43% of SMEs saying so, whereas the figure was just 29% last year. Flexible working arrangements have emerged as one of the most effective ways SMEs are tackling this challenge: the survey found that 39% of SMEs are offering flexible work schedules, a significant increase from 26% last year. Other measures aimed at enhancing employee satisfaction include the introduction of relaxation rooms or spaces for employees to recharge during work hours.

For the first time, this year's survey explored attitudes and approaches to older workers. With employees aged 65 and over representing almost 14% of Hong Kong's workers[i], this demographic is an increasingly important part of the region's labour force.

Hong Kong SMEs are a noteworthy employer of this age group, the survey reveals, with 49% saying their workforces are made up by 10% or more of this demographic. Some 34% of respondents view this age group as experienced and skilled, with 26% mentioning a higher retention rate and 25% asserting their loyalty.

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Notes to editor:

For results of a similar survey conducted with Singapore SMEs, please visit this link.

Singapore-Hong Kong SME survey summary: Workplace Safety and Health, Staff Retention and Business Risks/Concerns

About QBE Hong Kong

QBE Hong Kong is part of QBE Insurance Group and has been serving Hong Kong for more than a century. Today, QBE Hong Kong operations include QBE Hongkong & Shanghai Insurance Limited, QBE General Insurance (Hong Kong) Limited, and QBE Mortgage Insurance (Asia) Limited. As a leading general insurer, QBE Hong Kong provides a comprehensive range of non-life insurance solutions for both business and personal customers. QBE Hong Kong operates through an extensive network of professional insurance agents and brokers.

To learn more about QBE Hong Kong, please visit www.qbe.com/hk

source: QBE Hong Kong