Life insurance reaches new high in Hong Kong

This marked a 57% year-on-year in annualised new premiums.

Hong Kong's life insurance sector witnessed a robust rebound in the first quarter of 2024, with annual new premiums (ANP) reaching an unprecedented $5.24b (HK$40.9b), according to Nomura.

This marks a significant 57% year-on-year (YoY) and 76% quarter-on-quarter (QoQ) increase, surpassing the previous peak recorded in Q1 2019 by 10%.

The impressive growth was driven by both onshore and offshore business sectors. Onshore ANP rose by 39% YoY and 121% QoQ, topping its Q1 2019 peak by 9%. 

Offshore business exhibited an even more remarkable performance, with a 96% YoY and 33% QoQ surge, 7% above its peak level in Q1 2017.

Brokers played a pivotal role in this resurgence, with their ANP skyrocketing by 179% YoY and 68% QoQ, reaching 72% above the Q1 2019 peak. 

In contrast, agents saw a modest 12% YoY increase and a slight 3% QoQ decline, positioning their ANP just 3% below the Q1 2019 peak. Banks experienced a 47% YoY and 185% QoQ rise in ANP, although still 5% shy of their Q1 2019 high.

A notable contributor to this growth was the Mainland Chinese Visitor (MCV) business, which saw its ANP jump by 91% YoY and 23% QoQ. 

This segment's performance now stands 13% above the pre-pandemic level of Q1 2019 and only 3% below its historical peak in Q1 2017.

This rebound underscores the resilience and recovery of Hong Kong’s life insurance market, reflecting strong demand and effective distribution channels, particularly through brokers.

The sector's continued growth is a positive indicator of economic stabilisation and increasing consumer confidence.

($1.00 =HK$7.81)