Hong Kong insurance premiums dip slightly in first nine months


New office premiums (excluding retirement business) showed strong growth, with 24% growth to HK$122.5 billion. In particular, individual life and annuity (linked) business grew by 179.6% to HK$$21.9 billion.

However, the IA said that the growth should be taken in context of a low base of comparison in 2020. Life insurance sales saw a huge slump last year due to the effects of COVID-19 restrictions.

Insurance sales from Mainland Chinese visitors took a 92.7% nosedive, from HK$6.5 billion in the first three quarters of 2020 to around $470 million in the corresponding period of 2021, due to ongoing travel restrictions.

General business

Gross and net premiums of general insurance business were HK$48.8 billion and HK$32.8 billion, reflecting an increase of 0.6% and a decrease of 0.2%, respectively. The overall underwriting profit decreased from HK$1.435 billion to HK$1.223 billion.

Pecuniary loss business gross premiums continued to grow to HK$3.5 billion, up 35.5%, due to the upward adjustment of maximum property values under the mortgage insurance programme. Increases were also recorded for property (6.6%), marine (9.3%) and general liability (11.5%). Accident and health premiums declined by 4.7%, mostly due to stagnant outbound travel, which saw non-medical business decrease by 24.3%.

For reinsurance inward business, the gross and net premiums were HK$12 billion (down 6.6%) and HK$6.5 billion (down 16.9%), respectively. This was attributed to the contraction of motor business, which was offset by growth in the accident and health business and property lines. Overall underwriting performance improved from HK$172 million to HK$361 million, mainly driven by favourable claims experience.

Source Article

Next Post

The Bank of London launches to tackle UK clearing market inefficiencies

The Bank of London, set up to approve and process payments in the UK clearing market, will launch for only the second time in 250 years  as it aims to compete with the Big Four UK banks that dominate the market. The Bank of London launches to tackle UK clearing […]