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Prudential "Hospitalisation Coverage Survey" reveals that less than 40% of respondents feel confident handling unexpected medical expenses, and under one-third have hospital cash coverage

• 60% of respondents with medical insurance are concerned about rising premiums, pointing to a lack of confidence in existing coverage
• Among those with hospital cash coverage, 73% believe the benefit period should extend to at least age 75, while 42% advocate for lifetime protection, underscoring a significant gap in coverage duration
• Prudential launches Prudential Encash Hospital Cash Savings Insurance, the first-in-market¹ hospital cash plan that combines whole-life health and life protection with growth opportunities for wealth, offering dual security for both health and finances

(Hong Kong, 10 July 2025) Prudential Hong Kong Limited (“Prudential”) announces the findings of its Hospitalisation Coverage Survey² (the “Survey”), which reveal a general lack of confidence among respondents in managing medical expenses. Many feel overwhelmed by the financial burden of chronic illnesses. Even those with medical insurance experience varying degrees of financial strain, with notable gaps in hospital cash coverage. The results highlight a pressing demand for more comprehensive, effective and long-term medical protection plans to help ease financial pressures.

Concerns over managing medical expenses and the scope of coverage among policyholders

The survey shows that, amid rising medical costs, 68% of respondents primarily rely on medical or hospital insurance to cover their expenses, 65% depend on personal savings, and 46% turn to public healthcare. Notably, only 36% are confident in their ability to manage unexpected medical expenses through these means. Confidence declines with age – just 29% of respondents aged 51 and above consider themselves financially prepared.

Even among those with medical insurance, financial pressure is common. The survey reveals that 60% are concerned about rising medical premiums; 44% worry their premiums may be wasted if no claims are made; and 40% are concerned their current medical insurance is insufficient to cover their medical expenses, particularly rehabilitation costs such as physiotherapy or traditional Chinese medicine. These findings highlight a widespread lack of confidence in existing medical coverage, especially in terms of its scope and practical effectiveness.

The findings also indicate that costs associated with chronic illnesses further intensify financial pressures, with 66% of respondents concerned about expenses related to treatment, hospitalisation, and other medical needs for chronic conditions. Long-term care costs follow closely at 65%, while 60% worry about the impact of illness on family members. These results underscore the significant financial burden financial burden on individuals and families, reinforcing the critical need for comprehensive health protection planning.

Significant gaps in hospital cash coverage highlight strong demand for long-term protection plans

Hospital cash benefits offer flexible financial support for a range of medical expenses, including rehabilitation and nursing care, when individuals are hospitalised due to illness or injury. Yet, the survey shows that market penetration for such coverage remains low, with only 29% of respondents saying they hold a hospital cash plan. This compares to 64% with critical illness insurance and 61% with savings life insurance plans. The results emphasise the need to raise public awareness about the importance of hospital cash protection.

Among respondents with hospital cash plans, 73% believe coverage should extend at least to age 75, while 42% advocate for lifetime protection. The findings highlight the inadequate duration of current hospital cash coverage and reinforce the strong market demand for long-term hospital cash solutions.

Furthermore, 70% of respondents with hospital cash plans report that their daily cash benefit is below HK$1,200, and only 21% consider the amount sufficient to meet their actual needs. Again, it demonstrates a growing demand for hospital cash coverage that better aligns with practical needs.

Prudential Encash Hospital Cash Savings Insurance protects health and powers wealth

Felix Fung, Chief Product Officer at Prudential Hong Kong Limited, said: “Our survey findings show that many individuals are underprepared for long-term medical protection. A significant number rely solely on basic health coverage, which often comes with limitations such as deductibles and insufficient support for rehabilitation. Even those with medical insurance express concerns about rising premiums or worry that unclaimed benefits may render their premiums wasted. To address these concerns, Prudential is launching the new Prudential Encash Hospital Cash Savings Insurance, a hospital cash plan that enables customers to enjoy lifelong health and life protection through a limited premium payment period, while also benefiting from long-term wealth accumulation. This empowers individuals to safeguard their health and build a stronger financial foundation to flexibly meet their evolving medical and financial needs throughout different life stages.”

Prudential Encash Hospital Cash Savings Insurance (the “Plan”) is a first-in-market¹ hospital cash plan that offers whole-life health and life protection alongside wealth accumulation opportunities. The Plan provides daily hospital cash benefits and a lump-sum payout for long-term hospitalisation, severe dementia or Parkinson’s disease, and as a first-in-market³ feature, severe diabetes. It also includes a guaranteed cash value that grows over time, along with a non-guaranteed terminal bonus. Even without making any claims, customers can accumulate wealth during their lifetime and pass on a financial legacy after death.

Prudential Encash Hospital Cash Savings Insurance offers lifetime protection with a premium payment period as short as five years. Key product features* include:

Daily Hospital Cash Benefit and ICU Hospital Cash Benefit	Daily Hospital Cash Benefit for stays in eligible public or private hospitals around the world of 0.1% of the current sum assured per day (up to HK$2,000⁴ ) Up to double the benefit for stays in an Intensive Care Unit (ICU)
Long-term Illness Benefit	A one-time Long-term Illness Benefit is payable for each of the following conditions, totalling up to 15% of the current sum assured: 1. 【First-in-market³】Severe Diabetes – 5% 2. Severe Dementia OR Parkinson’s Disease – 5% 3. Long-term hospital stay for more than 90 days – 5% (up to HK$100,000⁴)
Death Benefit	100% of the current sum assured and the face value of any Terminal Bonus, less any benefit already claimed, in the event of the life assured’s death Flexibly payout options: lump sum, monthly instalments, or a combination of both
Long-term savings	Premium payment terms of 5, 10, 15 or 20 years The policy accumulates value over time through a combination of guaranteed cash value and non-guaranteed terminal bonus
Exclusive Underwriting Guidelines⁵	Exclusive medical underwriting guidelines for specific common medical conditions: For example, individuals with lung nodules are generally excluded from coverage for all lung-related conditions when applying for standard medical insurance products. However, with Prudential Encash Hospital Cash Savings Insurance, only conditions related to lung nodules and lung tumours are excluded, while other lung-related illnesses⁶ such as pneumonia and bronchitis remain covered Exclusive Financial Underwriting Arrangements: Hospital cash benefits do not require the submission of income proof and are calculated separately from the hospital cash limits of other insurance plans

Candy Au Yeung, Chief Customer Operations and Health Officer of Prudential Hong Kong Limited, said: “At Prudential, we are committed to listening and understanding our customers' needs, striving to be a trusted partner throughout their health journeys. With the launch of Prudential Encash Hospital Cash Savings Insurance, we aim to comprehensively address customers’ long-term protection needs and ease the financial burden brought on by illness, enabling them to focus on recovery with greater peace of mind. The plan also features exclusive medical underwriting guidelines, offering more holistic protection for individuals with common medical conditions. Looking ahead, Prudential remains dedicated to standing by our customers when they need it most, delivering thoughtful and comprehensive health solutions to meet their diverse needs.”

*For details, and terms and conditions of Prudential Encash Hospital Cash Savings Insurance, please refer to the product features and product brochure on Prudential’s official website.

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¹ We base our statements that the plan is the “first-in-market” hospital cash plan to offer whole-life health and life protection with growth opportunities for wealth on our understanding and interpretation of current market information regarding hospital cash protection basic plans that provide daily hospitalisation cash benefits, issued by major Hong Kong life insurance companies for individual customers, as at 28 May 2025

² In June 2025, Prudential conducted an online survey involving 336 existing customers aged 18 or above, including respondents from Hong Kong and Chinese mainland

³Our statements about the plan’s Severe Diabetes lump sum benefit being “first-in-market” refer to the lump sum benefit it provides if the life assured is diagnosed with severe type 2 diabetes without diabetic complications. We base the statements on our understanding and interpretation of current market information on basic plans which provide a lump sum benefit, if the life assured is diagnosed with certain disease conditions, issued by major Hong Kong life insurance companies for individual customers, as at 28 May 2025

⁴Prudential Encash Hospital Cash Savings Insurance is a US dollar-denominated policy. The Hong Kong dollar equivalent is calculated based on an assumed exchange rate of US$1 to HK$8. The actual exchange rate may fluctuate

⁵ This exclusive underwriting guideline is based on the Prudential Encash Hospital Cash Savings Insurance, which provides health protection in the form of advance payouts and includes a savings component, distinguishing it from other reimbursement-based or hospital cash health products

⁶If the illness is not directly or indirectly caused by a nodule, tumour, or any other pre-existing condition in the relevant part of the body, the company will assess the claim based on medical documentation, including pathology reports, to make the final claims decision

Disclaimer
Prudential Encash Hospital Cash Savings Insurance is underwritten by Prudential Hong Kong Limited. This document does not contain the full terms and conditions of this plan and is for reference only. For further details and the terms and conditions of this plan, customers can ask Prudential for a sample of the policy document. This document is for distribution in Hong Kong only. It is not an offer to sell or solicitation to buy or provide any insurance product outside Hong Kong. Prudential does not offer or sell any insurance product in any jurisdictions outside Hong Kong where such offering or sale of the insurance product is illegal under the laws of such jurisdictions.

About Prudential Hong Kong Limited

Prudential has been serving the people of Hong Kong since 1964. Through Prudential Hong Kong Limited and Prudential General Insurance Hong Kong Limited, we provide a range of financial planning services and products including individual life insurance, investment-linked insurance, retirement solutions, health and medical protection, general insurance, and employee benefits to protect over 1.3 million customers in Hong Kong. In 2023, Prudential established its Macau branch to offer health insurance and financial solutions for the Macau community, completing its footprint in the Greater Bay Area. Please visit www.prudential.com.hk for more information.

Candy Au Yeung, Chief Customer Operations and Health Officer of Prudential Hong Kong Limited (left) and Felix Fung, Chief Product Officer at Prudential Hong Kong Limited (right) attend the launch event for Prudential Encash Hospital Cash Savings Insurance.

Felix Fung, Chief Product Officer at Prudential Hong Kong Limited shares findings of Prudential " Hospitalisation Coverage Survey "　and introduces Prudential Encash Hospital Cash Savings Insurance.

Candy Au Yeung, Chief Customer Operations and Health Officer of Prudential Hong Kong Limited, shares the latest developments of Prudential’s Health business.