Insurance Authority releases Hong Kong insurance business statistics for 2019

30 September 2020

The Insurance Authority (IA) today (30 September 2020) released Hong Kong insurance business statistics for 2019, compiled based on audited returns and actuarial information submitted by individual insurers. From a sector-wide perspective, the level of total gross premiums reached $566.9 billion, showing a year-on-year growth of 10.2%.

(Percentage changes in brackets in the following paragraphs represent changes over 2018)

Long term business

Office premiums of in-force long term business were $511.5 billion in 2019 (increased by 10.8%), continued to be dominated by the Individual Life category which contributed $440.2 billion (increased by 3.3%) or 86.1% of the total. The number of policies in this category was 13.2 million, carrying net liabilities of $2,120.3 billion.

On the other hand, the total office premiums of new Individual Life business hovered at $151.2 billion (increased by 0.4%), derived from $139.4 billion of Non-linked business (increased by 4.7%) and $11.8 billion of Linked business (decreased by 32.4%). The number of new policies was 1.3 million (increased by 2.4%). Meanwhile, new Individual Annuity business surged markedly by 93.2% to $20.9 billion, attributable to the fact that some 96,000 Qualifying Deferred Annuity Policies have been sold in the nine months running from 1 April to 31 December 2019 that brought in total premiums of $6.9 billion.

General business

In 2019, total gross and net premiums of general business were $55.4 billion (increased by 4.4%) and $37.7 billion (increased by 8.6%) respectively, while underwriting profit rose from HK$583 million in 2018 to HK$869 million in 2019. Gross and net claims incurred by authorized insurers related to the recent social events were HK$1.3 billion and HK$411 million respectively. Property Damage business recorded total gross premiums of $10.3 billion (increased by 13.7%), benefitting from additional demands and hardening of rates on account of losses inflicted by super-typhoons in the past two years. Accident & Health business also registered gross premiums of $18.3 billion (increased by 7.2%).

The improved overall performance was driven by direct Property Damage business, whose underwriting profit expanded from $199 million in 2018 to $823 million in 2019, offset in part by losses for direct Motor Vehicle business which widened from $441 million to $514 million and direct Employees’ Compensation business from $150 million to $260 million in the same period due to adverse claims experience.

A summary of the Hong Kong insurance statistics for 2019 is provided at annex, and further details could be obtained at the IA website.

Ends