Hong Kong’s insurance premiums dip in 2023

Its long-term business witnessed a contraction, whilst its general segment registered growth.

Hong Kong’s insurance sector saw its total gross premiums inch down 1.1% year-on-year (YoY) to HK$549.7b in 2023, according to Hong Kong’s Insurance Authority (IA).

The market’s life or long-term business segment accumulated total revenue premiums worth HK$482.4b, down 1.8% YoY,  mainly driven by a decrease in Retirement Scheme business. Total claims and benefits paid to policyholders increased by 11.6% YoY to HK$332.4b.

For non-life or general business, total gross premiums increased by 4.1% YoY to HK$67.3b, with gross premiums of Accident & Health business rising by 13.2% YoY due to increased demand for travel insurance and group medical business.

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Direct business generated an overall underwriting profit of HK$0.1b, a significant decrease compared to the previous year, mainly due to negative performance in Accident & Health business and Property Damage business.

Reinsurance inward business saw an increase in gross and net premiums by 3.1%  YoY to HK$18.1b and 0.2% YoY to HK$8.9b, primarily from Property Damage and Accident & Health business, but overall underwriting profit declined due to a rise in net claims incurred ratio.