Hong Kong’s Insurance Industry Sees Significant Growth
Hong Kong’s insurance industry recorded gross premiums of $82.91 billion (HK$637.8 billion) in 2024, driven by notable increases in both long-term and general insurance businesses, according to data from the Insurance Authority (HKIA).
Long-term Insurance Business
The long-term business sector saw new office premiums, excluding Retirement Scheme business, reach $28.57 billion (HK$219.8 billion), a 21.4% year-over-year increase. Non-linked individual business contributed $27.05 billion (HK$208.1 billion), up 22.8%, with $23.71 billion (HK$182.4 billion) from participating businesses and $3.34 billion (HK$25.7 billion) from other businesses. Linked individual business premiums remained stable at $1.46 billion (HK$11.2 billion).
Premiums from Mainland visitors totaled $8.16 billion (HK$62.8 billion), up 6.5%, representing 28.6% of total new office premiums for individual business. Approximately 59% of these policies were whole life insurance, 28% were critical illness policies, and 5% were medical policies.
Total revenue premiums of in-force business amounted to $69.86 billion (HK$537.4 billion), an 11.4% increase, primarily driven by Non-Linked individual business at $61.33 billion (HK$471.8 billion) (up 11.2%), Linked business at $3.12 billion (HK$24 billion) (up 1.8%), and Retirement Scheme business at $4.64 billion (HK$35.7 billion) (up 22%). Claims and benefits paid to policyholders totaled $45.83 billion (HK$352.5 billion), a 6% increase.
General Insurance Business
In the general business sector, total gross and net premiums were $13.07 billion (HK$100.5 billion) and $9.06 billion (HK$69.7 billion), respectively. Total gross claims paid amounted to $6.89 billion (HK$53 billion). The sector recorded an overall operating profit of $1.05 billion (HK$8.1 billion), with underwriting profit contributing $0.43 billion (HK$3.3 billion).
For direct general business, gross and net premiums were $6.68 billion (HK$51.4 billion) and $4.65 billion (HK$35.8 billion), with gross claims of $3.65 billion (HK$28.1 billion) paid. Accident & Health, General Liability (including Employees’ Compensation), Property Damage, and Motor Vehicle businesses generated $2.96 billion (HK$22.8 billion), $1.57 billion (HK$12.1 billion), $0.81 billion (HK$6.2 billion), and $0.70 billion (HK$5.4 billion) in gross premiums, respectively.
The general Liability and Property Damage businesses contributed most to the underwriting profit of $0.16 billion (HK$1.2 billion), whilst Pecuniary Loss and Accident & Health businesses posted underwriting losses.
In reinsurance inward business, gross and net premiums totaled $6.37 billion (HK$49 billion) and $4.41 billion (HK$33.9 billion), with $3.25 billion (HK$25 billion) paid in gross claims. The majority of gross premiums came from Property Damage, Accident & Health, and General Liability businesses. Underwriting profit for this segment was $0.27 billion (HK$2.1 billion), mainly driven by the Property Damage business.
Due to the implementation of the Risk-based Capital regime on 1 July, comparisons with previous years’ figures for the general business sector are not appropriate. ($1.00 = HK$7.76)
