Business leaders in Hong Kong are increasingly grappling with a multitude of challenges, according to the latest QBE Insurance report. Rising property rental prices have been identified as the foremost concern for the second year running. Additionally, there is a notable gap between perceived risks and actual insurance coverage. For instance, while 65% of executives worry about income loss due to business interruptions, only a quarter possess relevant insurance. The study also underscores growing awareness around workplace safety and mental health, alongside strategies for talent retention.
In a comprehensive survey conducted by QBE Hong Kong, insights were gathered from 600 business executives regarding various risk factors and opportunities. Property rental costs continue to dominate concerns, with an increase from 64% last year to 67% this year. Alarmingly, many businesses remain inadequately insured against common risks such as staff turnover and equipment failure. Andex Fung from QBE highlighted that despite heightened awareness, numerous small and medium enterprises (SMEs) still lack sufficient coverage.
The report also emphasizes the increasing importance placed on workplace safety and health (WSH). A significant rise was noted in the communication of benefits to employees, reaching 92% in 2025 compared to 90% the previous year. Moreover, compliance with mandatory employee compensation insurance improved, with awareness rising from 76% to 83%. However, there has been a slight decline in companies implementing return-to-work policies, dropping from 86% to 82%, while reported WSH incidents increased from 22% to 25%.
Mental health continues to be a focal point for Hong Kong SMEs, with 95% acknowledging its significance. Initiatives aimed at enhancing employee well-being include flexible working hours and remote work options, which have seen substantial increases in adoption rates. Talent acquisition and retention persist as critical issues, prompting more businesses to adopt strategies such as pay raises and bonuses, along with flexible schedules to attract and retain skilled workers.
An emerging trend highlighted in the survey is the employment of older workers, who constitute nearly 14% of Hong Kong's workforce. Almost half of the surveyed SMEs employ individuals aged 65 or above, recognizing their valuable experience, higher retention rates, and loyalty. This marks a shift in attitudes towards aging employees, emphasizing their contributions beyond traditional perceptions.
As the business landscape evolves, it becomes imperative for Hong Kong SMEs to address these concerns effectively. By enhancing insurance coverage, prioritizing workplace safety, supporting mental health, and embracing diverse workforce demographics, they can navigate current challenges and seize future opportunities. These measures not only bolster operational resilience but also foster a positive work environment conducive to long-term success.