Hong Kong’s insurance industry saw strong growth in 2024. Both long-term and general insurance sectors contributed to the rise in total gross premiums, reaching $82.91 billion.
Long-Term Business Drives Major Growth
According to the Insurance Authority (HKIA), latest news shows that new office premiums in the long-term sector, excluding Retirement Scheme business, reached $28.57 billion. This marks a 21.4% year-on-year increase.
Non-linked individual business premiums stood at $27.05 billion, up by 22.8%. This includes $23.71 billion from participating businesses and $3.34 billion from other business types. Meanwhile, linked individual business premiums remained stable at $1.46 billion.
Premiums from Mainland visitors rose by 6.5%, reaching $8.16 billion. These accounted for 28.6% of the total new office premiums for individual business. Around 59% of these policies were whole life insurance, 28% were critical illness policies, and 5% were medical policies.
Revenue Premiums and Policyholder Benefits
Total revenue premiums of in-force business reached $69.86 billion, showing an 11.4% increase. This growth came mainly from Non-Linked individual business at $61.33 billion (up 11.2%), Linked business at $3.12 billion (up 1.8%), and Retirement Scheme business at $4.64 billion (up 22%).
Policyholders received claims and benefits totaling $45.83 billion, a 6% increase compared to the previous year, related news reported.
General Insurance Sector Records Gains
In the general insurance sector, total gross premiums were $13.07 billion, and net premiums stood at $9.06 billion. Gross claims paid totaled $6.89 billion. The sector recorded an overall operating profit of $1.05 billion, with underwriting profit contributing $0.43 billion.
Direct General Business Shows Solid Performance
For direct general business, gross premiums reached $6.68 billion, and net premiums were $4.65 billion. Gross claims paid amounted to $3.65 billion. Accident & Health, General Liability, Property Damage, and Motor Vehicle businesses generated significant premium income, led by Accident & Health at $2.96 billion.
General Liability and Property Damage businesses contributed most to the underwriting profit of $0.16 billion. However, Pecuniary Loss and Accident & Health businesses posted underwriting losses.
Reinsurance Business Also Grows
In the reinsurance inward business, gross premiums totaled $6.37 billion, and net premiums reached $4.41 billion. Gross claims paid amounted to $3.25 billion. Most of the gross premiums came from Property Damage, Accident & Health, and General Liability businesses.
Underwriting profit for reinsurance inward business stood at $0.27 billion, mainly driven by Property Damage.
New Risk-Based Capital Regime Brings Change
Due to the introduction of the Risk-Based Capital regime on July 1, comparisons with previous years’ figures for the general business sector are not appropriate anymore. The industry remains optimistic as it adjusts to this important regulatory change.
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