Hong Kong life insurance industry revenues dip by 3.3%

New business premiums from Mainland China visitors surged by 150%.

Total revenue premiums of in-force long term business in Hong Kong for the first half of 2022 reached $33.73b, a decrease of 3.3% compared to the same period last year, according to the latest statistics released by the Insurance Authority.

Individual Life and Annuity (Non-Linked) business were at $28.12b, a decrease of 2.4% YoY. The Idividual Life and Annuity (Linked) business recorded a decrease of 25.1% to $1.92b, Meanwhile, the Retirement Scheme business increased by 5.3% to $3.21b. The total amount of payment made to policyholders in terms of claims and benefits reached $18.96b in H1 2022, a decrease of 1.4% compared to the same period last year.

ALSO READ: Hong Kong consumers are ‘moderately literate’ in insurance: study

The half-year also saw new office premiums of long-term business, excluding that of the Retirement Scheme business, increased by 1.7% to $10.43b. Individual Life and Annuity (Non-Linked) business new office premiums went up by 9.1% offset by the 36.2% decrease in Linked businesses.

Around 17,000 Qualifying Deferred Annuity Policies were issued in H1, attracting $140m in terms of premiums that represent 1.4% of the total for individual businesses.
Mainland China

Meanwhile, H1 2022 also recorded an increase of 150% to $68.80m of new business premiums from Mainland China visitors. This represents 0.7% of the total of new business premiums for individual businesses.

The IA said that the significant upturn is caused by the impact of isolated transactions and a relatively low base of comparison for the same period in 2021. 

“Some 95% of the policies taken out by this group of customers were settled at regular intervals. Critical illness, whole life and medical insurance accounted for 32%, 32% and 26% of the policies respectively,”  the IA said.