Insurance industry’s total gross premiums up 14%

Total gross premiums of the Hong Kong insurance industry amounted to $114.7 billion in the first half of 2011.

The Office of the Commissioner of Insurance said gross and net premiums of general insurance business rose by 12.7% to $18.7 billion and 10.1% to $12.9 billion respectively compared with the corresponding period in 2010. Overall underwriting profit also increased from $1.3 billion to $1.5 billion.

Meanwhile on direct business, gross premiums gained 8.5% to $13.9 billion and net premiums gained a similar growth to $10.3 billion in the first half of 2011 compared with the corresponding period in 2010.

OCI broke it down: “Premium growth was propelled again by Accident & Health business (comprising Medical business) the gross and net premiums of which were $5.0 billion and $4.2 billion respectively. General Liability business (comprising Employees’ Compensation business) and Motor Vehicle business also contributed to the overall business growth. The former recorded gross and net premiums of $3.5 billion and $2.6 billion respectively, while the latter recorded $1.6 billion and $1.3 billion respectively.”

It was however noted that gross and net premiums of Pecuniary Loss business (comprising Mortgage Guarantee business) dropped by 14.6% to $698 million and 18.7% to $427 million respectively as a result of the slowdown in property transactions.

The underwriting profit of direct business remained flat at $964 million in the first half of 2011, compared to $962 million in the corresponding period of 2010, added OCI.