The Insurance Authority (IA) today (30 August 2024) released provisional statistics of the Hong Kong insurance industry for the first half of 2024, showing a rise of total gross premiums by 5.1% to $310.9 billion over the corresponding period in 2023.

(Percentage figures shown in brackets represent year-on-year changes)

Long term business

Total revenue premiums of in-force long term business were $273 billion in the first half of 2024 (increased by 5.5%), mainly comprising $243.3 billion from Individual Life and Annuity (Non-Linked) business (increased by 6.9%), $10.7 billion from Individual Life and Annuity (Linked) business (decreased by 16%), and $15.1 billion from Retirement Scheme business (increased by 1.9%). During the same period, total claims and benefits paid to policy holders amounted to $183.6 billion1 (increased by 18.2%).

New office premiums (excluding Retirement Scheme business) of long term business were $115.9 billion (increased by 12.3%), made up of $111.3 billion from Individual Life and Annuity (Non-Linked) business (increased by 15.5%) and $4.3 billion from Individual Life and Annuity (Linked) business (decreased by 34.7%). Around 44,000 Qualifying Deferred Annuity Policies were issued, attracting $2.8 billion in terms of premiums or 2.4% of the total for individual businesses.

New business premiums derived from Mainland visitors receded by 6.9% to $29.7 billion compared with the same period last year, whose share of total new office premiums for individual businesses dropped from 31% to 25.7%. As before, about 97% of the new policies were settled at regular intervals (i.e. non-single premium). Whole life, critical illness and endowment insurance represented about 59%, 29% and 3% of the number of these policies respectively.

General business

In the first half of 2024, the gross and net premiums of general insurance business were $37.9 billion (increased by 2.4%) and $24.4 billion (increased by 5%) respectively, against which total gross claims of $17.3 billion were paid (increased by 13.7%). The overall underwriting profit improved from $1.5 billion to $1.9 billion (increased by 33.9%).

On direct business, the gross and net premiums were $27.8 billion (increased by 3.2%) and $19 billion (increased by 2.1%) respectively. The gross premiums of Accident & Health business reached $11.7 billion (increased by 12.5%), benefitting from growth of group medical business and sustained demand for travel insurance. The gross premiums of Property Damage business and Motor Vehicles business also rose to $3.4 billion (increased by 3.4%) and $2.8 billion (increased by 8.5%) respectively, while the gross premiums of Pecuniary Loss (comprising Mortgage Guarantee) business reduced to $1.3 billion (decreased by 35%) amid conservative sentiments in the property market.

Direct business generated an overall underwriting profit of $1.4 billion (increased by 95.4%), with the net claims incurred ratio dipping slightly from 60.8% to 58.5%. Due to better claims experience and release of reserves, General Liability (comprising Employees' Compensation) business reported underwriting profit of $0.8 billion (increased by 92.2%), while Pecuniary Loss business also saw a surge in underwriting profit to $0.5 billion (increased by 128%) due to lesser payment of upfront commission in respect of Mortgage Guarantee business.

On reinsurance inward business, the gross and net premiums were $10.1 billion (increased by 0.4%) and $5.4 billion (increased by 16.8%) respectively. An expansion of Accident & Health business and General Liability business outweighed the contraction of Pecuniary Loss business, Property Damage business and Goods in Transit business. The overall underwriting profit shrank by 23% to $0.6 billion, with the net claims incurred ratio shooting up from 42.3% to 54.1%, mainly attributable to adverse claims experience.

A summary of the provisional statistics is provided at Annex, and additional details can be obtained at the IA website.

Ends

Note:

1  Including lapse/surrender benefits of $80.6 billion, other claims and benefits of $103 billion.