Hong Kong insurance premium increase by 10% in 2019

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The Hong Kong insurance industry has announced a gross premiums of HK$566.9bn for 2019, representing 10.2 percent according to the latest insurance business statistics released by the Insurance Authority of Hong Kong.

The figures are based on audited returns and actuarial information submitted by individual insurers.

The authority said that in 2019, total gross premiums of general business totalled HK$55.4bn, an increase of 4.4%. Net premiums of general business increased by 8.6% to HK$37.7bn. Underwriting profit rose from HK$583m in 2018 to HK$869m in 2019. Gross claims incurred by authorised insurers related to the recent social events were HK$1.3bn. Net claims were HK$411m.

In terms of classes of general insurance business, property damage business recorded total gross premiums of HK$10.3bn for 2019, an increase of 13.7%, benefiting from additional demands and hardening of rates on account of losses inflicted by super-typhoons in the past two years, said the authority. Accident and health business registered gross premiums of HK$18.3bn for 2019, an increase of 7.2%.

The Authority said that the improved overall performance for 2019was driven by direct property damage business, which saw underwriting profit expand from HK$199m in 2018 to HK$823m in 2019. It said this was offset in part by losses for direct motor vehicle business, which increased from HK$441m to HK$514m. Losses for direct employees’ compensation business also increased for 2019, from HK$150m to HK$260m in the same period, due to adverse claims experience.

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