Insurance Authority releases provisional statistics of Hong Kong insurance industry in 2021
11 March 2022
The Insurance Authority (IA) today (11 March 2022) released provisional statistics of the Hong Kong insurance industry for 2021, showing a mild decrease of total gross premiums by 0.9% to $602.7 billion over 2020.
(Percentage figures shown in brackets represent year-on-year changes)
Long term business
Total revenue premiums of in-force long term business were $540.8 billion in 2021 (decreased by 1.3%), mainly comprising $446.6 billion from Individual Life and Annuity (Non-Linked) business (decreased by 3.7%), $44.6 billion from Individual Life and Annuity (Linked) business (increased by 61%), as well as $43.9 billion from Retirement Scheme business (decreased by 13.4%). Total amount of payment made to policy holders in terms of claims and benefits was $307.1 billion1 (increased by 25.7%).
On the other hand, new office premiums (excluding Retirement Scheme business) of long term business were $166.8 billion (increased by 25%), made up of $135.6 billion from Individual Life and Annuity (Non-Linked) business (increased by 12.8%) and $30.8 billion from Linked business (increased by 140.7%). Around 47,000 Qualifying Deferred Annuity Policies were issued, attracting $3.5 billion in terms of premiums that represent 2.1% of the total for individual businesses.
New business derived from Mainland visitors shrank from $6.8 billion in 2020 to about $688 million in 2021 (decreased by 89.9%), representing 0.4% of the total for individual businesses. Some 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%, 33% and 19% of the policies respectively.
General business
In 2021, the gross and net premiums of general insurance business were $61.8 billion (increased by 2.6%) and $41.5 billion (increased by 1.4%) respectively, against which total gross claims payment was $31.4 billion (increased by 2.3%). The overall underwriting profit dropped from $2,232 million to $1,958 million.
On direct business, the gross and net premiums were $46.1 billion (increased by 3.9%) and $33 billion (increased by 5.6%) respectively. Pecuniary Loss business sustained a high growth of 33.5% to $4.6 billion in gross premiums, fueled by upward adjustment of maximum property values under the Mortgage Insurance Programme. Property Damage business, General Liability (Others) business and Ships business also went up by 5.5%, 9.3% and 10.7% respectively. However, the gross premiums of Accident & Health business fell 2.3%, within which the Medical subclass stayed flat and the Non-medical subclass tumbled by 20.8% as outbound travel remained hampered.
Direct business generated an overall underwriting profit of $1,336 million (decreased by 19.1%) as the net claims incurred ratio rose from 58.9% to 61%, which underlies the deteriorated performance of Accident & Health business from a profit of $973 million to a loss of $58 million. This was partially offset by positive results achieved by Property Damage business, General Liability business and Pecuniary Loss business with underwriting profits at $577 million (increased by 15.6%), $979 million (increased by 42.8%) and $41 million (from a loss of $191 million) respectively.
On reinsurance inward business, gross and net premiums were $15.7 billion (decreased by 1.2%) and $8.4 billion (decreased by 12.3%) respectively as the contraction of Motor Vehicle business outweighed an expansion in Property Damage business and Accident & Health business. Nonetheless, the overall underwriting performance rose from $582 million to $622 million, mainly contributed by a lowering of the net claims incurred ratio from 62.2% to 59.8%.
A summary of the provisional statistics is provided at Annex, and further details could be obtained at the IA website.
Ends
Note:
1 Including lapse/surrender benefits of $119.2 billion, other claims and benefits of $187.8 billion.