Mortality Protection Gap
Study 2021
The Insurance Authority carried out a Mortality Protection Gap Study 2021 (“the Study”) to raise public awareness of the Mortality Protection Gap (MPG), and drive public discussion of personal risk profiles and evolving exposure and how to bridge the gap, and set out a range of issues in a broader context for further investigation. To assess the overall magnitude of the MPG in Hong Kong, the Study examined the topic in detail.
Protection Needs
Financial Resources
Protection Gap
What is the Mortality Protection Gap?
The MPG is defined as protection needs of the remaining family members (i.e. the money required to maintain the living standard of the remaining family members) minus the resources available.
Adequate risk management is very important for life planning, especially on mortality risk, which could bring the most serious adverse effect to a family. For typical families, the existence of a MPG might lead to serious financial problem when the family suffered from misfortune, and the family might not be able to maintain the same standard of living. While the size of the MPG is affected by the family characteristics and financial situation, subject to different income levels and life planning, the MPG will vary throughout the lifespan of an individual. Therefore, everyone should think ahead and plan carefully for the future.

Key findings
Significant MPG size
The overall size of the MPG in Hong Kong was about HK$6.9 trillion in 2019, which is equivalent to about HK$1.9 million per economically active adult or 5.7 times the average annual income.
Role of insurance in closing the gap
We all have huge protection needs, which change over time and in line with important life events. In contrast to other financial instruments, which require a much longer time to accumulate and grow to a level that can provide sufficient protection, life insurance provides a quick and efficient way for policyholders to close the gap in short notice. Policyholders should therefore constantly review their insurance portfolio to make sure it matches their protection needs and financial resources to achieve better protection for themselves and their families.
Protection Needs Assessment
If you want to understand the impact of different life events on your current and future insurance needs and envisage the stage at which you will face the largest mortality protection gap, use the assessment tool on this website to obtain an analytical report.
Protection Needs Assessment