Insurance gross premiums increased by 11.6% in 2010

Total gross premiums of the Hong Kong insurance industry in 2010 were $207.2 billion.

This is according to the provisional statistics of the Hong Kong insurance industry for 2010 released by the Office of the Commissioner of Insurance.

In 2010, gross and net premiums of general insurance business recorded a growth of 9.8 per cent to $31.4 billion and 6.9 per cent to $21.9 billion respectively compared with 2009. The overall underwriting performance also recorded a rise in profit from $2.2 billion in 2009 to $2.6 billion in 2010.

On direct business, gross and net premiums gained 6 per cent to $24.1 billion and 3.8 per cent to $17.7 billion respectively in 2010 compared with 2009, propelled again by Accident and Health business gross and net premiums of which were $8 billion and $6.6 billion respectively. Other major classes of business including Property Damage, Motor Vehicle and General Liability businesses also contributed to the premium growth. Their gross and net premiums in 2010 were $3.4 billion and $1.9 billion, $2.9 billion and $2.4 billion, and $2.3 billion and $1.3 billion respectively.

The underwriting profit of direct business increased from $1.4 billion in 2009 to $1.9 billion in 2010. The profit of Pecuniary Loss business substantially gained from $175 million to $543 million, primarily driven by the buoyant property market for mortgage guarantee business and lower claims for credit business.

On reinsurance inward business, gross and net premiums increased from $5.8 billion to $7.3 billion and from $3.5 billion to $4.2 billion respectively in 2010 compared with 2009. Nevertheless, the underwriting profit declined from $779 million to $702 million due to adverse claims experience.

Total revenue premiums of long term in-force business was $175.8 billion in 2010, increasing by 11.9 per cent over 2009.

In 2010, revenue premiums of Individual Life and Annuity business and Individual Life and Annuity business increased by 16.2 per cent to $105.9 billion and by 18.3 per cent to $44.5 billion respectively when compared with 2009. Contributions of Retirement Scheme business plunged by 9.4 per cent to $22.9 billion.

New office premiums of long term business, excluding Retirement Scheme business, increased significantly in 2010 by 26.9 per cent to $59 billion compared with 2009. Both Individual Life and Annuity and Individual Life and Annuity business recorded significant premium growth - the former increased by 24.9 per cent to $38.7 billion and the latter increased by 32.8 per cent to $20 billion in terms of new office premiums.

In respect of new policies issued to Mainland visitors, office premiums amounted to $4.4 billion, representing 7.5 per cent of the total new office premiums $58.8 billion for individual business in 2010.