The Insurance Authority (IA) of Hong Kong has welcomed the enactment of new legislation aimed at simplifying the process for foreign companies to relocate their incorporation to the territory.
This move coincides with strong insurance sector growth figures for 2024, reflecting Hong Kong’s efforts to consolidate its position as a key regional insurance centre.
On May 14, Hong Kong’s Legislative Council approved the Companies (Amendment) (No. 2) Bill 2024, creating a statutory regime that allows companies registered abroad to re-domicile in the city without dissolving their original legal entities.
The IA noted that the legal reform offers a streamlined mechanism that could appeal to insurance providers operating in Hong Kong under foreign incorporation but maintaining substantive operations in the territory.
“The Amendment Bill is eagerly awaited by authorised insurers incorporated outside Hong Kong but with a prominent local presence. Their choice of Hong Kong as home base fully reflects the strengths and allure of our market driven by connectivity among cities in the Guangdong-Hong Kong-Macao Greater Bay Area,” said IA chief executive Clement Cheung.
The IA said it will collaborate with relevant authorities to roll out the new regime and support insurers interested in transitioning under the new law.
Preliminary data from the IA showed that the long-term insurance segment generated HK$637.8 billion in gross premiums in 2024. New office premiums excluding retirement products reached HK$219.8 billion, a year-over-year increase of 21.4%.
Within this category, non-linked individual products contributed HK$208.1 billion, comprising HK$182.4 billion from participating policies and HK$25.7 billion from other types. Linked business premiums held steady at HK$11.2 billion.
The market also saw the issuance of 70,000 qualifying deferred annuity plans, which generated HK$4.5 billion in premiums, representing 2.1% of the individual business. Mainland Chinese policyholders accounted for HK$62.8 billion in new premiums, with their purchases comprising whole life, critical illness, and medical insurance products.
Total in-force premiums rose by 11.4% to HK$537.4 billion, with payouts on claims and benefits amounting to HK$352.5 billion during the year.
The general insurance sector recorded HK$100.5 billion in gross written premiums and HK$69.7 billion in net premiums. Total claims amounted to HK$53 billion, while the market reported an overall operating profit of HK$8.1 billion, of which HK$3.3 billion was from underwriting.
Direct general insurance business accounted for HK$51.4 billion in gross premiums, with accident and health policies contributing HK$22.8 billion. General liability, including employee compensation, reached HK$12.1 billion, followed by property damage (HK$6.2 billion) and motor insurance (HK$5.4 billion).
While some segments such as pecuniary loss and accident and health posted underwriting losses, gains from property and liability insurance helped offset these impacts.
Reinsurance inward premiums totalled HK$49 billion, with HK$33.9 billion in net premiums and HK$25 billion in claims. Underwriting profit for reinsurance came in at HK$2.1 billion, mainly from property lines.
Research by GlobalData forecasts that Hong Kong’s general insurance sector will grow at a compound annual growth rate (CAGR) of 5.1% over the next five years. Gross written premiums are projected to rise to HK$85.4 billion (US$10.9 billion) by 2029.
The projection is based on 2025 expected premiums of HK$69.9 billion, excluding inward reinsurance, which aligns closely with the IA’s 2024 net premium data. This suggests stable growth in the core general insurance segment, reflecting market resilience and ongoing regulatory modernisation.
