A Record-Breaking Year for Insurance in Hong Kong

The Hong Kong insurance scene is buzzing with excitement as gross premiums soar to an astonishing $82.91 billion (HK$637.8 billion) in 2024! This surge is fueled by significant growth across both the long-term and general insurance sectors, according to the latest reports from the Insurance Authority (HKIA).

Life Insurance Takes the Lead!

In the realm of long-term insurance, new office premiums—excluding Retirement Scheme details—hit an impressive $28.57 billion (HK$219.8 billion), marking a phenomenal 21.4% increase year-on-year. The non-linked individual segment alone contributed $27.05 billion (HK$208.1 billion), a remarkable jump of 22.8%. This segment includes a hefty $23.71 billion (HK$182.4 billion) from participating businesses and $3.34 billion (HK$25.7 billion) from other types.

Mainland Visitors Fueling Growth

Don't overlook the influence of Mainland visitors, whose insurance premiums reached $8.16 billion (HK$62.8 billion), a 6.5% rise that now makes up 28.6% of total new office premiums in the individual sector. A staggering 59% of these policies are whole life insurance, while critical illness policies account for 28% and medical around 5%. Excitingly, we can expect updated stats for the Mainland visitor segment by mid-2025.

Incredible Total Revenue from In-Force Business

The total revenue from in-force business hit $69.86 billion (HK$537.4 billion), up 11.4%. Non-linked individual business leads this impressive increase at $61.33 billion (HK$471.8 billion), with a solid 11.2% growth, while linked business remains stable at $3.12 billion (HK$24 billion). Retirement Schemes also boasted a fantastic 22% increase, bringing in $4.64 billion (HK$35.7 billion).

Claims and Benefits on the Rise

As the premiums surge, the claims and benefits paid to policyholders also rose to $45.83 billion (HK$352.5 billion), reflecting a 6% increase.

General Business Sector Thrives

The general insurance sector isn’t lagging either, with total gross premiums amounting to $13.07 billion (HK$100.5 billion) and net premiums at $9.06 billion (HK$69.7 billion). The sector reported an overall operating profit of $1.05 billion (HK$8.1 billion), thanks in part to underwriting profits of $0.43 billion (HK$3.3 billion).

Diving into Direct General Business

Delving deeper into direct general business, gross premiums reached $6.68 billion (HK$51.4 billion), with net premiums at $4.65 billion (HK$35.8 billion). Key contributors like Accident & Health and Property Damage sectors brought in substantial gross premiums of $2.96 billion (HK$22.8 billion) and $0.81 billion (HK$6.2 billion), respectively, while General Liability policies also played a significant role in profitability.

The Future Looks Bright!

With the introduction of the Risk-based Capital regime on July 1st, the landscape of Hong Kong's insurance market is evolving, setting the stage for continued growth and performance in the years to come. Stay tuned as this vibrant sector continues to redefine insurance in one of the world's leading financial hubs!