The Insurance coverage Authority (IA) has launched provisional statistics of the Hong Kong insurance coverage business for 2023, exhibiting a lower of complete gross premiums by 1.1% to HK$549.7bn ($70.3bn) over 2022.
Long run enterprise
Whole income premiums of in-force long-term enterprise have been HK$482.4bn in 2023 (decreased by 1.8% over 2022), primarily comprising HK$423.4bn of particular person life and annuity (non-linked) enterprise (elevated by 2.6%), HK$23.6bn of particular person life and annuity (linked) enterprise (decreased by 16.8%), in addition to HK$29.3bn of retirement scheme enterprise (decreased by 34.3%).
This final result was largely attributable to remoted transactions of retirement scheme enterprise that occurred in 2022. In the meantime, the full claims and advantages paid to policyholders amounted to HK$332.4bn (elevated by 11.6%).
New workplace premiums (excluding retirement scheme enterprise) of long-term enterprise have been HK$181bn (elevated by 34.2%), made up of HK$169.4bn from particular person life and annuity (non-linked) enterprise (elevated by 41.8%) and HK$11.2 bn from particular person life and annuity (linked) enterprise (decreased by 25.1%).
Common enterprise
Whole gross and internet premiums of common insurance coverage enterprise in 2023 have been HK$67.3bn (elevated by 4.1%) and HK$43.3bn (elevated by 2.7%) respectively, towards which complete gross claims of HK$32.1bn (elevated by 6.8%) have been paid. The general underwriting revenue went down from HK$4.2bn to HK$0.8bn.
On direct enterprise, the gross and internet premiums have been HK$49.2bn (elevated by 4.5%) and HK$34.3bn (elevated by 3.4%) respectively.
The gross premiums of accident and well being enterprise reached HK$18.9bn (elevated by 13.2%), pushed by a surge in demand for journey insurance coverage and group medical enterprise. Motor autos enterprise and property injury enterprise reported gross premiums of HK$5.2bn (elevated by 5.1%) and HK$6.1bn (elevated by 6.5%) respectively. The expansion was partially offset by a drop in gross premiums of pecuniary loss (comprising mortgage assure) enterprise to HK$3.3bn (decreased by 21%) because of the lukewarm property market.
Underwriting results of direct enterprise
Direct enterprise generated an total underwriting revenue of HK$0.1bn (decreased by 95.4%), with the online claims incurred ratio advancing from 58.1% to 64.1%. This displays primarily the detrimental efficiency of accident and well being enterprise, property injury enterprise and pecuniary loss enterprise brought on by the emergence of latent medical claims and full resumption of financial actions after the pandemic, the acute climate situations in September 2023 and reserve adjustment for reverse mortgage insurance coverage. Nonetheless, a confluence of the identical components is unlikely in 2024.
In reinsurance inward enterprise, the gross and internet premiums have been HK$18.1bn (elevated by 3.1%) and HK$8.9bn (elevated by 0.2%) respectively. The expansion in gross premium got here from property injury enterprise and accident and well being enterprise, partly offset by the shrinkage of common legal responsibility enterprise and pecuniary loss enterprise. As the online claims incurred ratio rose from 44.6% to 55.8%, the general underwriting revenue declined 61.7% to HK$0.7bn.
