Decrease the financial pressure suffered by Hong Kong insurance companies coming to the mainland through digitization

Abstract

Nowadays more Hong Kong insurance companies are expanding their buisness into mainland, some of the researchers found that the cross-coundary costs are quite high and exist as the major challenge for those Hong Kong insurance companies. However, the hidden solution to this problem is still lacking. Therefore, this material would focus on the digitalization process to solve this high-cost problem. The methodology is like the following: through the collection of data and information from 3 websites called EBSCO, Zhangqiao Scientific Research and Scopus, and set the key words to scrutinize and analyze the documents. digitalization is a crucial and effective way for Hong Kong insurance companies who want to expand their business in China's mainland to decrease the cross-boundary managerial costs. Although digitalization has a high initial cost, it is still important to decrease the operational costs in the long run with the adaptation to today’s Artificial Intelligence emerging period. The result of the research is that the financial pressure caused by expanding business into mainland market by Hong Kong insurance companies can be decreased by digitalization process through several specific steps, which would be explained in detail later.