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Hong Kong Insurance Premiums Up 12.2% in 2024

by Celia

Hong Kong’s insurance sector has experienced a robust recovery, with total gross premiums rising by 12.2% year-on-year (YoY) to HK$480.8 billion (US$62.5 billion) in the first three quarters of 2024, according to data from the Insurance Authority (HKIA). This marks a significant rebound from the 1.1% YoY decline seen in 2023.

Long-Term Business Sees Growth

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The long-term insurance business also demonstrated strong growth. New office premiums, excluding retirement scheme business, reached HK$169.6 billion (US$22.1 billion), reflecting a 15.7% increase compared to the previous year. Premiums from Mainland Chinese visitors, however, dipped slightly by 0.4% YoY to HK$46.6 billion (US$6.1 billion), accounting for 27.6% of total new office premiums for individual businesses.

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The majority of policies purchased were on a regular payment basis. Whole life, critical illness, and medical policies made up 59%, 28%, and 5% of the market share, respectively. Beginning in 2025, the Insurance Authority will release statistics on business from Mainland visitors on a semi-annual basis, reflecting the seasonal nature of travel.

Revenue Premiums and Claims

Revenue premiums for long-term in-force business reached HK$405.8 billion (US$52.8 billion), marking an 8.3% YoY increase. Of this, HK$358.4 billion (US$46.6 billion) came from Non-Linked individual business (up 8.7% YoY), while HK$16.8 billion (US$2.2 billion) came from Linked business (down 7.5% YoY). Retirement Scheme business grew by 14% YoY, amounting to HK$25.5 billion (US$3.3 billion).

Claims and benefits paid to policyholders increased by 12.7% YoY, reaching HK$270.2 billion (US$35.1 billion).

General Business Performance

In general insurance, gross premiums totalled HK$75 billion (US$9.8 billion), with net premiums at HK$51.7 billion (US$6.7 billion). Gross claims paid amounted to HK$38.4 billion (US$5.0 billion), with an overall operating profit of HK$6.7 billion (US$0.9 billion), including an underwriting profit of HK$2.2 billion (US$0.3 billion). Meanwhile, claims paid in this sector totalled HK$18.6 billion (US$2.4 billion), and an underwriting loss of HK$0.3 billion (US$0.04 billion) was recorded.

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(US$1.00 = HK$7.79)

This positive performance signals strong growth prospects for Hong Kong’s insurance industry as it recovers from the challenges of 2023.

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