Hong Kong's 2013 Insurance Industry Growth Confirmed
by Mary Swire, Lowtax.net, Hong Kong
02 October, 2014
Total gross premiums of the Hong Kong insurance industry increased by a very creditable 13.7 percent to HKD299.5bn (USD38.6bn) in 2013, Hong Kong's Commissioner of Insurance has confirmed.
The greatest portion of total revenue premiums, those for long term in-force business, increased by 15 percent year-on-year to HKD257bn.
The Individual Life category remained the dominant line of business, making up HKD240.7bn, or 93.4 per cent of the total business. The number of such policies in 2013 stood at 10.4m, carrying net liabilities of just over HKD1 trillion.
During last year, the office premiums of new long-term insurance business amounted to HKD88.8bn, up 17.9 percent overall. New Individual Life & Annuity (Non-Linked) premiums increased by 19.7 percent to HKD69.6bn, while Individual Life & Annuity (Linked) premiums rose by 11.8 percent to HKD19.2bn.
In addition, gross and net premiums of general insurance business recorded growth of 6.6 percent to HKD41.8bn, and 6.9 percent to HKD28.9bn, respectively, in 2013.
The statistics are seen as highly positive given Hong Kong's recent efforts to support the insurance business, which is considered to be one of the major pillars of its financial services sector, as it has recorded annual double-digit growth for more than a decade in terms of both insurance density and penetration, and Hong Kong now ranks second in Asia.
The Government has also been working 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, while the Government has also halved profits tax on captive insurers, so as to give them the same tax concessions as those currently applicable to reinsurance companies.
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