Hong Kong’s PA&H insurance sector to reach $28.5b in 2028

This growth was driven by the increased health awareness brought by the pandemic.

Hong Kong’s personal accident and health (PA&H) insurance industry is expected to grow at a compound annual growth rate (CAGR) of 7.4% from $21.4b in 2024 to $28.5b in 2028, GlobalDate reported.

This year, the PA&H industry is expected to grow by 7.2% due to the increased health awareness following the COVID-19 pandemic and the return of travel from February 2023 after the lifting of pandemic restrictions.

Chinese customers are attracted to Hong Kong’s better medical and healthcare services and greater insurance package offerings which include coverage for family members, severity-based protection, and the flexibility to purchase higher coverage for specific types of illness.

The growth of the PA&H industry was also spurred by the growing integration of Hong Kong and Chinese insurers in the GBA, facilitated by initiatives such as Insurance Connect.

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Meanwhile, the Economic and Social Commission for Asia and the Pacific (ESCAP) reported that 30.8% of the Hong Kong population will be aged 60 years and older in 2024.

This figure is expected to increase to 35.5% by 2030 which will further increase the reliance on health insurance.

To meet the needs of the ageing population, Hong Kong insurers have introduced critical illness plans to provide comprehensive coverage to individuals with diabetes and survivors of chronic conditions like cancer, heart attacks, or strokes.

“A higher rate of acute diseases and chronic conditions, increasing demand from mainland Chinese customers, coupled with a rapidly ageing population, will drive growth in Hong Kong’s PA&H insurance industry. Furthermore, rising health insurance premiums due to inflation and strong healthcare utilization will support PA&H insurance growth over the next five years,” Prasanth Katam, Insurance Analyst at GlobalData said.