The Hong Kong Insurance Authority (IA) has announced provisional figures for 2024, showing that the local insurance market recorded total gross premiums of HK$637.8 billion across long-term and general business segments.
New office premiums for long-term insurance, excluding retirement schemes, totalled HK$219.8 billion, marking a 21.4% year-over-year rise.
Non-Linked individual business contributed HK$208.1 billion, an increase of 22.8%, split between HK$182.4 billion in participating products and HK$25.7 billion from other business types. Linked individual business premiums remained steady at HK$11.2 billion.
Approximately 70,000 qualifying deferred annuity policies were issued during the year, generating HK$4.5 billion and accounting for 2.1% of individual business premiums.
Sales to Mainland Chinese visitors brought in HK$62.8 billion in new business premiums, representing a 6.5% uptick and comprising 28.6% of the total new office premiums. Policies sold were largely periodic payment products, primarily whole life (59%), critical illness (28%), and medical policies (5%). Further data regarding this segment will be available in the mid-2025 release.
In-force business revenue premiums climbed 11.4% year-on-year to HK$537.4 billion, driven by HK$471.8 billion from non-linked business, HK$24 billion from linked business, and HK$35.7 billion from retirement schemes. Policyholders received HK$352.5 billion in total claims and benefits during 2024.
The general insurance market posted gross premiums of HK$100.5 billion and net premiums of HK$69.7 billion. Total gross claims paid amounted to HK$53 billion, while overall operating profit stood at HK$8.1 billion, including HK$3.3 billion in underwriting profits.
Direct general insurance business recorded HK$51.4 billion in gross premiums and HK$35.8 billion in net premiums. Major classes included:
Profit contributions from general liability and property damage were partially offset by losses in pecuniary loss and accident and health lines.
Reinsurance inward business accounted for HK$49 billion in gross premiums and HK$33.9 billion in net premiums, with gross claims of HK$25 billion. A total underwriting profit of HK$2.1 billion was mainly attributed to property damage coverage.
The IA advised that direct comparisons to prior years should be avoided following the implementation of the Risk-Based Capital (RBC) regime on July 1, 2024.
The IA also recently outlined its regulatory achievements for 2023-24, including the launch of the RBC framework, development initiatives for insurance-linked securities, and expanded market oversight.
As of 2024, the IA supervises 160 insurers and over 115,300 licensed intermediaries. Over the past year, the IA conducted financial reviews, risk assessments, joint inspections with the Hong Kong Monetary Authority focusing on premium financing compliance, and targeted inspections related to customer conduct.
The regulator also ran training sessions on ethical practices for senior management and supported a reference-checking program with the Hong Kong Federation of Insurers aimed at reducing misconduct.
The IA reported a 6.1% improvement in continuing professional development (CPD) compliance, increasing the industry compliance rate from 90% to 96.1%.
In consumer protection efforts, the IA advanced work on the Policy Holders’ Protection Scheme (PPS) and introduced enhanced disclosure rules for participating and universal life policies, scheduled for full implementation by mid-2024.
Anti-money laundering and counter-financing of terrorism initiatives continued, including industry seminars and updated compliance guidance. In enforcement, the IA collaborated with the Independent Commission Against Corruption and Hong Kong Police, leading to 66 investigations, 2,025 disciplinary actions, and fines totalling HK$7 million for CPD-related violations.
