HK’s total gross premiums dip 1% in the first nine months

Hong Kong’s long-term or life business experienced a contraction, whilst the general business witnessed growth.

Total revenue of premiums in the long-term business saw a contraction of 1.7% year-on-year (YoY) to HK$374.8b during the first three quarters of 2023, whilst premiums of its general businesses climbed 4.7% YoY to HK$53.8b, the Insurance Authority (IA) of Hong Kong reported.

This led to the industry’s contraction of 1% YoY to HK$428.6b.

Meanwhile, individual life and annuity (non-linked) businesses increased by 2.8% YoY to HK$329.2b. Opposite this, linked business decreased by 17% YoY to HK$18.2b.

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Retirement Scheme business decreased by 35% YoY to HK$22.4b, influenced by specific transactions in 2022.

Total claims and benefits paid to policyholders increased by 7.4% YoY to HK$239.7b.

Net premiums of general insurers increased by 3% YoY to HK$34.7b, whilst total gross claims paid out increased by 5.6% YoY to HK$22.8b.

Overall underwriting profit in the general business reduced significantly from HK$3.4b to HK$1.5b during the period. Gross premiums for direct business (general) increased by 5.4% YoY to HK$39.6b. Similarly, net premiums increased by 5% YoY to HK$27.9b.