Hong Kong H1 Insurance Premiums Up Over 13 Percent
by Mary Swire, Lowtax.net, Hong Kong
01 September, 2015
Total gross premiums rose by 13.6 percent in the first half of this year to HKD184.9bn (USD23.9bn), Hong Kong's Office of the Commissioner of Insurance has announced.
The total revenue premiums of the long-term in-force business segment increased by 15.4 percent year-on-year to HKD161bn.
For example, individual Life & Annuity (Non-Linked) total premiums increased by 20.2 percent to HKD125.1bn, while Individual Life & Annuity (Linked) total premiums dropped 7.3 percent to HKD22.9bn, in the first six months of 2015.
New office premiums (excluding retirement schemes) of long-term business for the first half of 2015 increased by 25.2 percent to USD68.7bn, compared with the same period of 2014.
The continuing double-digit growth of the insurance sector will be seen as highly positive given Hong Kong's efforts to support the insurance sector, which is considered to be one of the major pillars of its financial services sector.
The Government has 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 has also given 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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