Hong Kong insurance market shows resilience in 2024 provisional statistics

Segments' performance unveiled

Hong Kong insurance market shows resilience in 2024 provisional statistics

Professionals Risks

By Roxanne Libatique

The Hong Kong Insurance Authority (IA) has released its provisional business statistics for the first nine months of 2024, reporting total gross premiums of HK$480.8 billion.

Performance of long-term business

Long-term business new office premiums, excluding those from retirement schemes, totalled HK$169.6 billion, an increase of 15.7% compared to the same period in 2023.

Non-linked individual business accounted for the majority, reaching HK$162 billion, an 18% rise. This segment included HK$141.4 billion from participating business and HK$20.7 billion from other categories. Linked individual business, however, saw a 19.7% decline, with new premiums amounting to HK$7.2 billion.

Approximately 58,000 qualifying deferred annuity policies were issued during the period, contributing HK$3.7 billion, or 2.2%, to the overall individual business premium total.

Premiums from Mainland Chinese visitors declined slightly by 0.4% year-on-year to HK$46.6 billion, representing 27.6% of total new office premiums in the individual business category.

Whole life, critical illness, and medical policies were the most common types purchased, comprising 59%, 28%, and 5%, respectively. To better align with seasonal travel patterns, the IA will shift to semi-annual reporting of Mainland visitor-related data starting in the first quarter of 2025.

Revenue premiums from in-force long-term business rose 8.3% to HK$405.8 billion. Non-linked individual policies accounted for HK$358.4 billion of this figure, an increase of 8.7%.

Revenue from linked business decreased 7.5% to HK$16.8 billion, while retirement scheme business premiums climbed 14% to HK$25.5 billion. Claims and benefits paid to policyholders increased by 12.7% to HK$270.2 billion.

General business results

For general insurance, gross premiums reached HK$75 billion, while net premiums stood at HK$51.7 billion. Claims paid during the period totalled HK$38.4 billion. The sector recorded an operating profit of HK$6.7 billion and an underwriting profit of HK$2.2 billion.

Direct general business contributed HK$39.5 billion in gross premiums, with accident & health policies making up HK$18 billion, including HK$15.5 billion from medical coverage and HK$1.5 billion from travel insurance.

Other significant contributions included HK$9.4 billion from general liability, HK$5.1 billion from property damage, and HK$4.2 billion from motor vehicle business. Gross claims for direct general business totalled HK$19.8 billion, with an underwriting profit of HK$2.5 billion, driven by favourable results in general liability, pecuniary loss, and property damage.

In reinsurance inward business, gross premiums reached HK$35.5 billion, and net premiums amounted to HK$23.9 billion. Gross claims totalled HK$18.6 billion, resulting in an underwriting loss of HK$0.3 billion. Property damage, accident & health, and general liability were the primary contributors to reinsurance inward business activity.

Following the introduction of the Risk-Based Capital regime on July 1, 2024, insurers have shifted to reporting underwriting results on a financial-year basis, with updated reporting definitions. Offshore general insurance data has also been included, making direct comparisons with past figures unreliable.

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