According to QBE Insurance’s latest report, a significant gap exists between the concerns of Hong Kong’s small and medium-sized enterprises (SMEs) and their preparedness for business interruptions. The report reveals that 65% of Hong Kong SMEs lack business interruption coverage, despite 65% of business leaders expressing concern about income loss from such interruptions. This discrepancy highlights a critical need for SMEs to reassess their risk management strategies and insurance coverage.
The survey also underscores that rising property rental prices remain the top business concern for the second consecutive year, with 67% of respondents citing this issue. This ongoing challenge can strain financial resources and impact the overall stability of SMEs. Additionally, 65% of business leaders worry about losing staff, and 64% are concerned about equipment malfunction. However, only 19% and 25%, respectively, have insurance policies in place to mitigate these risks. This gap in coverage can leave businesses vulnerable to unexpected disruptions and financial losses.
Workplace safety and health (WSH) have gained increasing attention among Hong Kong SMEs. The report indicates that communication of coverage and benefits to employees has risen to 92% in 2025 from 90% last year, demonstrating a growing commitment to transparency and employee well-being. However, the proportion of businesses with return-to-work policies has declined from 86% to 82%, which may indicate a need for more robust support systems for employees recovering from injuries or illnesses. On a positive note, the number of companies reporting WSH incidents has increased from 22% to 25%, suggesting a more proactive approach to identifying and addressing workplace hazards.
Mental health remains a top priority for Hong Kong SMEs, with 95% of respondents recognizing its importance. To support employee well-being, more companies are implementing measures such as offering flexible working hours (46%, up from 39%) and work-from-home arrangements (40%, up from 28%). These initiatives not only enhance work-life balance but also help in retaining skilled workers. For instance, a company that offers flexible working hours can attract and retain employees who value the ability to manage their personal and professional lives more effectively.
Talent acquisition and retention continue to be significant challenges for SMEs, with 50% of respondents identifying it as a key issue. To address this, increasing pay and bonuses has emerged as a primary strategy, with 43% of SMEs prioritizing this approach compared to 29% last year. This shift reflects the competitive nature of the job market and the need for businesses to offer competitive compensation to attract and retain top talent. Flexible work schedules have also gained traction, with 39% of businesses offering them, up from 26%. Other initiatives to enhance employee satisfaction include creating relaxation spaces to support work-life balance, which can help reduce stress and improve overall well-being.
For the first time, the survey examined attitudes towards older workers, who make up nearly 14% of Hong Kong’s workforce. SMEs remain a significant employer of this demographic, with 49% reporting that at least 10% of their workforce is aged 65 or older. Employers recognize the value of older workers, citing their experience (34%), higher retention rates (26%), and loyalty (25%) as key strengths. For example, an older employee with years of experience can provide valuable insights and mentorship to younger colleagues, contributing to a more cohesive and skilled workforce.
In conclusion, the QBE Insurance report highlights several key areas where Hong Kong SMEs can improve their risk management and employee well-being strategies. By addressing the gap in business interruption coverage, managing rising rental costs, and implementing robust WSH and mental health initiatives, SMEs can build a more resilient and supportive work environment. Additionally, recognizing the value of older workers and offering competitive compensation and flexible work arrangements can help in attracting and retaining top talent, ensuring the long-term success of these businesses.
