30 November 2021
The Insurance Authority (IA) today (30 November 2021) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2021, showing a mild decrease of total gross premiums by 1.1% to $455.9 billion over the corresponding period of 2020.
(Percentage figures shown in brackets represent year-on-year changes)
Long term business
Total revenue premiums of in-force long term business were $407.1 billion in the first three quarters of 2021 (decreased by 1.3%), mainly comprising $335.5 billion from Individual Life and Annuity (Non-Linked) business (decreased by 4%), $32.1 billion from Individual Life and Annuity (Linked) business (increased by 62.1%), as well as $34.8 billion from Retirement Scheme business (decreased by 8.9%).
On the other hand, new office premiums (excluding Retirement Scheme business) of long term business were $122.5 billion (increased by 24%), made up of $100.2 billion from Individual Life and Annuity (Non-Linked) business (increased by 10.7%) and $21.9 billion from Linked business (increased by 179.6%). This positive outturn should nonetheless be viewed against a low base of comparison in 2020. During the first three quarters of 2021, some 39,000 Qualifying Deferred Annuity Policies were issued that attracted $2.9 billion in terms of premiums, representing 2.4% of the total for individual businesses.
New business derived from Mainland visitors shrank from $6.5 billion in the first three quarters of 2020 to around $470 million in the corresponding period of 2021 (decreased by 92.7%), representing 0.4% of the total for individual businesses. About 96% of the policies taken out by this group of customers were settled at regular intervals (i.e. non-single premium). Critical illness, whole life and medical insurance accounted for 38%, 31% and 21% of the policies respectively.
General business
In the first three quarters of 2021, the gross and net premiums of general insurance business were $48.8 billion (increased by 0.6%) and $32.8 billion (decreased by 0.2%) respectively. The overall underwriting profit reduced from $1,435 million to $1,223 million.
On direct business, the gross and net premiums were $36.8 billion (increased by 3.2%) and $26.3 billion (increased by 5.1%) respectively. Pecuniary Loss business continued to grow to $3.5 billion (increased by 35.5%) in terms of gross premiums, supported by upward adjustment of maximum property values under the Mortgage Insurance Programme. Property Damage business, Ships business and General Liability (Others) business also went up by 6.6%, 9.3% and 11.5% respectively. On the other hand, Accident & Health business declined by 4.7%, within which the Medical subclass dipped by 2.4% and the Non-medical subclass collapsed by 24.3% as outbound travel remained stagnant.
Direct business generated an overall underwriting profit of $862 million (decreased by 31.7%), with Accident & Health business falling back to $128 million (decreased by 85.2%) after being hit by resurgence of medical claims, partially offset by positive results of Property Damage business, General Liability (Others) business and Pecuniary Loss (Others) business which produced underwriting profits of $421 million (increased by 21.7%), $254 million (increased by 67.7%) and $146 million (increased by 243.5%) respectively.
On reinsurance inward business, the gross and net premiums were $12 billion (decreased by 6.6%) and $6.5 billion (decreased by 16.9%) respectively because contraction of Motor Vehicle business attenuated expansion of Accident & Health business and Property Damage business. Nonetheless, the overall underwriting performance improved from $172 million to $361 million, mainly driven by favourable claims experience.
A summary of the provisional statistics is provided at Annex , and further details could be obtained at the IA website .
Ends