Hong Kong's Insurance Market Booms in 2024
The Hong Kong insurance industry demonstrated remarkable growth in 2024, with significant increases in premiums and new policy issuances. According to the Insurance Authority (IA), the sector experienced substantial expansion across various segments, indicating a hot market for insurance products. In the first half of 2024, total gross premiums in Hong Kong's insurance market rose by 5.1% to HK$310.9 billion compared to the same period in 2023. This growth trend was even more pronounced in the first quarter, with a 12.2% year-on-year increase to HK$165.1 billion. The long-term insurance sector showed particularly strong performance:
Mainland Chinese visitors continued to play a significant role in driving the market's growth. In the first nine months of 2024, premiums from Mainland visitors reached HK$46.6 billion, accounting for 27.6% of total new office premiums in the individual business category. Whole life, critical illness, and medical policies were the most popular among Mainland visitors, comprising 59%, 28%, and 5% of purchases, respectively.
The demand from Mainland customers remained strong, with more than 160,000 new insurance policies issued to Mainland Chinese visitors in Hong Kong in the first three quarters of 2024. This surge in demand can be attributed to various factors, including the desire to hedge against currency fluctuations and access to a wider range of insurance products.
According to Globaldata Plc, the insurance industry's growth is expected to continue, with forecasts predicting a compound annual growth rate (CAGR) of 4.1% for the life insurance market from 2024 to 2028. Direct written premiums are projected to increase from HK$459.9 billion in 2024 to HK$539.1 billion by 2028.
As the Hong Kong insurance market continues to heat up, insurers are actively recruiting professionals from Mainland China to cater to the growing demand from Chinese visitors. This influx of talent is further strengthening Hong Kong's position as a key insurance hub in the region.
The robust growth in premiums and the strong demand from Mainland visitors underscore the vitality and attractiveness of Hong Kong's insurance market in 2024. As the industry continues to evolve and adapt to new challenges, it remains a key player in the region's financial landscape.
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