Adyen Insurance Report 2026: How Retail-Conditioned Expectations are Shaping Digital Transformation in HK Insurance

New research from Adyen, the global financial technology platform of choice for leading businesses, reveals that Hong Kong consumers are increasingly expecting their insurance providers to deliver the same fast, seamless, and highly personalized digital experiences they receive from the retail sector. According to the latest Adyen Insurance Report 2026, based on a poll of 2,000 Hong Kong consumers and 204 senior insurance leaders, this shift in consumer behavior is exposing critical gaps in the local insurance industry’s digital transformation, where legacy systems continue to create friction in the customer journey. 

The report reveals that speed and convenience are no longer just “nice-to-haves” but primary drivers of customer acquisition and retention. Today, 41% of Hong Kong consumers explicitly prioritize experiencewhen interacting with their insurers.

This trend is especially pronounced among younger demographics, signaling a permanent shift in how insurance is bought and managed. While the price of premiums remains the top consideration for older generations (81% of Baby Boomers), Gen Z policyholders are driven by different metrics: 48% are motivated by brand reputation, and they place a high premium on digital convenience and rapid service.

Legacy systems are hindering the customer experience

Despite Hong Kong’s status as a leading global financial hub, the insurance sector remains hampered by outdated infrastructure that introduces friction at multiple touchpoints—from onboarding and premium collections to claims processing.

The reliance on manual and legacy financial processes remains deeply entrenched. For instance, 55% of surveyed insurers admit to dedicating significant resources to manual processing, and a staggering 96% still rely on outdated methods like cheques for certain financial disbursements. This lack of automation is creating an expectation gap, with half of the surveyed insurers acknowledging that the consumer demand for instant, seamless experiences is a key competitive challenge for the next five years.

Kai Tang, Head of Hong Kong at Adyen, commented: “Consumers today are not just comparing their insurer to other insurers; they are also benchmarking them against their favorite e-commerce platforms and ride-hailing apps. They expect to pay their premiums with a single click and manage their policies effortlessly. When the front-end digital experience is hindered by back-end legacy payment systems, insurers risk losing customer trust and loyalty.”

The friction of over-cautious fraud controls

The gap between consumer expectations and industry capabilities is further widened by how insurers handle security. Fraud remains a massive drain on profitability in Hong Kong, with with 74% of insurers report that fraud costs them up to 5% of their annual revenue.

However, the response to this threat is often at the expense of the customer experience. Over-cautious and rigid fraud controls are introducing unnecessary friction for genuine policyholders, slowing down transactions and service delivery. 

Consumers are more than willing to meet insurers halfway to solve this friction. An overwhelming 92% of Millennials say they are happy to adopt two-factor authentication (2FA) if it means a faster, smoother experience. Yet, insurers are lagging in adopting the smart, frictionless defenses needed to balance security with convenience: only 28% currently use AI-based fraud detection, with 52% hesitant due to the perceived costs of implementing next-generation AI tools. 

Towards a connected, experience-led ecosystem

To narrow the expectation gap, the next phase of digital transformation in Hong Kong’s insurance sector must focus on modernizing the underlying payment and data infrastructure. According to the report, 54% of insurers expect to implement end-to-end customer journey visibility and API integrations with ecosystem partners by 2030. 

By unifying payments, data, and risk management within a single platform, insurers can unlock efficiencies that drive both customer satisfaction and operational resilience.

“The most forward-looking insurers see payments not merely as a back-office utility, but as a critical engine for customer experience and innovation,” Tang added. “By integrating systems that can process payments seamlessly, utilize data intelligently, and maintain invisible but strong fraud controls, insurers can turn traditional pain points into a distinct competitive advantage.”