Hong Kong’s total gross premiums dips by 2.2% to $39.48b

However, new sales of life insurance policies went up by 22.9%

The Hong Kong industry’s total gross premiums declined by 2.2% to HK$307b ($39.48b) in the first half of 2021, according to a report released by the Insurance Authority.

In the life insurance business, total revenue fell by 2.4% year-on-year to $35.18b.

Meanwhile, new sales of life insurance policies, excluding retirement scheme business were up by $10.35b, an increase of 22.9%
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“This positive outturn should nonetheless be viewed carefully against a low base of comparison in 2020. During the first half of 2021, some 31,000 Qualifying Deferred Annuity Policies were issued that attracted $2.2b in terms of premiums, representing 2.7% of the total for individual businesses,” the report said.

It also noted that new business from China shrank from $800m in 2020 to $25.72b, a decrease of 96.5% representing 0.3% of the total for individual businesses.

About 97% of the policies taken out by this group of customers were settled at regular intervals (i.e. non-single premiums). Critical illness, whole life, and medical insurance accounted for 38%, 33%, and 20% of the policies, respectively.

In Hong Kong’s non-life sector, gross and net premiums of the general insurance business decreased by $4.30b and $2.84b, respectively, with the overall underwriting profit improving from $80.25m to $102.11m.

On direct business, net premiums increased by 4.3% to HK$17.7b. Similar to last year, the Pecuniary Loss business saw a massive growth of 39.1% riding on the upward adjustment of maximum property values under the Mortgage Insurance Programme.

The gross premiums of Property Damage business and General Liability (Others) business also went up by 5.9% and 15.9%, respectively, but accident and health business dropped 6.4% since hindrance on outbound travel caused the non-medical subclass to plunge by 33.1%. Employees’ compensation business ebbed by 5.5% due to subdued economic activities amidst COVID-19.