Hong Kong insurance market remains ‘soft’ in Q2 2024

Overall pricing remains competitive as new businesses emerge. 

Hong Kong’s insurance market was generally ‘soft’ but remains pressured by social and economic inflation in the second quarter (Q2 2024), according to AON's Q2 2024 Global Insurance Market Insights Report.

Pricing remained competitive as competition for new business increased. 

Capacity was generally ample for most risks, whilst preferred risks were often over-subscribed.

Underwriting was mostly prudent across much of the market as underwriters sought to differentiate risk quality, offering favorable terms mostly to preferred risk types.

Meanwhile, Underwriting remained flexible for Casualty/Liability and Directors and Officers due to healthy market competition.

Automobile insurance remained moderate, with insurers covering more electric vehicles to create healthy competition in the market and a favorable environment. 

Casualty/Liability insurance’s healthy competition pressured pricing downward, although modest increases continued for some local and multinational programs. 

The market's Underwriters were ‘flexible’, focusing on well-performing risks and offering favourable pricing and coverage terms for such risks.

Directors and Officers insurance continued to soften as competition increased, driven by sufficient market capacity amidst an environment with few growth opportunities for insurers.

Property insurance remained competitive with ample capacity generally available and its pricing remained favorable for well-performing risks.

Meanwhile, multinational programs experienced a more moderate environment, with natural catastrophe-exposed risks driving technical pricing considerations.