Hong Kong’s Insurance Authority (IA) has released its provisional statistics for the first quarter of 2022, with total gross premiums growing by 0.5% year on year to HK$158.2 billion (SG$27.6 billion).
For the long-term segment, total revenue premiums of in-force business were HK$138.9 billion, down 0.2% from the same period last year. Individual life and annuity (non-linked) business brought in HK$113.3 billion, while HK$7.9 billion came from individual life and annuity (linked) business, which decreased by 17% year on year. Retirement scheme business premiums were HK$15.8 billion, up 9.2%. The total amount of claims and benefits paid out was HK$71.6 billion, down 4.1%.
New business premiums from Mainland Chinese visitors made a rebound, growing 235% to HK$345 million. This was from a very low base in the first quarter of 2021, when many COVID-19 restrictions, including cross-border travel bans, were in place. Business from Mainland visitors has historically been a significant revenue source for Hong Kong insurers.
The gross and net premiums of the Hong Kong general insurance sector were HK$19.3 billion (up 5.8%) and HK$12 billion (up 0.1%) respectively. Total gross claims payment decreased by 0.9% to HK$7.2 billion. The overall underwriting profit more than doubled year on year, from HK$512 million to HK$1.063 billion.
For reinsurance inward business, the gross and net premiums were HK$5.1 billion (up 20%) and HK$2.3 billion (up 5.5%) respectively. The growth of gross premiums was driven by marine, property damage business and accident and health lines, aided by hardening rates. However, overall underwriting profit dropped from HK$117 million to HK$98 million, with the net claims incurred ratio slightly increasing from 61.2% to 61.5%.
As of March 31, there were 163 authorised insurers in Hong Kong, with 90 general insurers, 53 long-term insurers, 19 composite insurers and one special purpose insurer. There were 2,084 licensed insurance agencies, 84,916 licensed individual insurance agents and 25,185 licensed technical representatives of agencies. The IA also recorded 815 licensed insurance brokerages and 11,121 licensed brokers on the same date.
