Hong Kong 2014 Insurance Premiums Up Over 13 Percent
Mary Swire, Lowtax.net, Hong Kong
17 March, 2015
The Hong Kong insurance industry's 2014 total gross premiums increased by 13.4 percent on 2013 figures, to HKD329.7bn, Hong Kong's Commissioner of Insurance has reported.
The greatest portion of total revenue premiums, those for long-term in-force life and annuity insurance, increased by almost 15 percent in 2014 year-on-year to HKD285.8bn. The premiums of new long-term insurance business (excluding retirement scheme business) amounted to HKD114bn, up 23.2 percent year-on-year.
In respect of policies issued to Mainland visitors, new premiums amounted to HKD24.4bn, representing 21.4 percent of the total new long-term premiums.
In addition, in 2014, general insurance business gross and net premiums recorded growth of 4.2 percent to HKD43.9bn and 3.8 percent to HKD30.3bn, respectively, compared with the previous year. Overall underwriting profit was maintained at HKD3bn, which is on a par with that of 2013.
The statistics can be seen as highly positive given Hong Kong's recent efforts to support its insurance business, which is considered to be one of the major pillars of its financial services sector. It has recorded annual double-digit growth for more than a decade.
In 2014, the Government continued to work closely with the insurance industry in taking forward a number of key regulatory initiatives, including setting up an independent Insurance Authority and establishing a Policyholder Protection Fund.
It also gave captive insurance companies a profits tax concession of 50 percent – equivalent to that given to reinsurance companies – in order to encourage Mainland enterprises to form captive insurers in Hong Kong to enhance their risk management.
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