The Insurance Authority (IA) of Hong Kong has disclosed provisional statistics for the local insurance industry for the first nine months of 2023. These figures indicate a slight decline in total gross premiums, which fell by 1% to HK$428.6 billion, compared to the same period in 2022.
In the long-term business sector, total revenue premiums for in-force policies amounted to HK$374.8 billion, marking a 1.7% decrease. This total includes HK$329.2 billion from individual life and annuity (non-linked) business, showing a 2.8% increase.
However, there was a 17% decrease in individual life and annuity (linked) business to HK$18.2 billion, and a significant 35% drop in retirement scheme business to HK$22.4 billion. This decline was attributed to specific transactions related to retirement scheme business during the same period in 2022. Total claims and benefits paid to policyholders rose to HK$239.7 billion, a 7.4% increase.
New office premiums for long-term business, excluding retirement scheme business, witnessed a substantial rise of 30.6% to HK$146.5 billion. This was primarily due to a 37.4% increase in Individual life and annuity (non-linked) business, amounting to HK$137.3 billion, despite a 24.4% decline in Linked business to HK$9 billion. Around 24,300 qualifying deferred annuity policies were issued, contributing HK$1.6 billion in premiums, equating to 1.1% of the total for individual businesses.
Premiums from Mainland visitors decreased by 32.9% quarterly to HK$15 billion, but still reached HK$46.8 billion or 32% of the total for individual businesses over the first three quarters. About 97% of these policies were non-single premium, with whole life, critical illness, and medical insurance constituting 54%, 35%, and 4% of the policies respectively.
In general business, gross and net premiums for the first three quarters of 2023 were HK$53.8 billion (up 4.7%) and HK$34.7 billion (up 3%) respectively, with gross claims of HK$22.8 billion (a 5.6% increase). The overall underwriting profit fell significantly from HK$3.4 billion to HK$1.5 billion.
Direct business saw gross and net premiums of HK$39.6 billion (up 5.4%) and HK$27.9 billion (up 5%) respectively. Accident and health business gross premiums were HK$15.4 billion, increasing by 13%, driven by recovery in travel and new coverages in medical insurance. motor vehicles and property damage businesses reported increases of 6.9% and 7.4% respectively, while pecuniary loss business saw a 12.3% reduction to HK$2.8 billion. The overall underwriting profit for direct business dropped by 68.3% to HK$649 million, with net claims incurred ratio rising from 57.2% to 62.2%.
Reinsurance inward business recorded gross and net premiums of HK$14.2 billion (up 2.9%) and HK$6.8 billion (down 4.7%) respectively. The overall underwriting profit in this segment declined by 35.7% to HK$870 million. The net claims incurred ratio increased slightly from 47.3% to 48.6%.
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