Insurance broker JLT Asia said this week that it had bought Hong Kong-based Lambert Brothers to help it tap into growing local demand for independent advice on employee benefits.
“There is a growing need for healthcare protection in Hong Kong given medical inflation and people are living longer,” said Nick Cousins, managing director of JLT Hong Kong, in an interview with FinanceAsia.
The number of people without adequate healthcare cover is growing rapidly across Asia as populations age and governments struggle to provide cradle-to-grave protection.
The health protection gap, the difference between the cost of meeting consumers' healthcare needs and the amount available to spend, is set to balloon to $197 billion in 2020 from $9 billion in 2011, according to reinsurer Swiss Re.
In Hong Kong alone this gap is set to expand to $137.9 million per capita by 2020.
Consumer awareness is also growing. “Employees are realizing [that] attracting talent isn’t just about what people are paid anymore,” said JLT’s Cousins.
The number of insurance providers is relatively stable in Hong Kong, said Cousins, but he noted that competition was fierce and that Richard Li’s insurer FWD was set to become "a major player" after taking over ING’s Hong Kong operations.
Lambert Brothers is profitable and has over 40 insurance professionals. Its strength lies in advice on employee benefits and marine insurance. The companies did not disclose the value of the deal.
Mike Haynes who was previously Managing Director of Lambert Brothers will join the Board of JLT’s Hong Kong business as deputy chairman. JLT’s Cousins will run the combined business with immediate effect.
JLT Asia’s operations in Asia date back to 1836 and it has about 1,500 staff across the region.
