In a financial landscape where growth seems uncertain elsewhere, Hong Kong's insurance industry defiantly shattered the HK$652 billion premium mark in 2022, cementing its role as an economic powerhouse with one of Asia's highest penetration rates.
Key Takeaways
- In 2022, the total gross premiums written by all insurers in Hong Kong reached HK$652.4 billion, marking a 5.2% year-on-year increase.
- Hong Kong's insurance penetration rate stood at 18.7% of GDP in 2022, one of the highest in Asia.
- The insurance industry's total assets under management grew to HK$4.2 trillion by end-2022, up 6.8% from the previous year.
- Individual life new business annual premium equivalent (APE) was HK$112.3 billion in 2022, up 13.5%.
- Participating policies accounted for 45.2% of in-force life policies as of 2022.
- Annuity sales surged 28.4% to HK$15.7 billion in 2022.
- General insurance direct gross premiums grew 7.8% to HK$50.3 billion in 2022.
- Accident and health insurance segment premiums were HK$18.7 billion, 37% of GI market.
- Motor insurance premiums totaled HK$12.4 billion, up 4.2% YoY.
- Total gross claims incurred by GI insurers: HK$38.4 billion in 2022.
- Life insurance claims paid amounted to HK$78.2 billion in 2022, up 6.5%.
- Motor claims ratio for GI was 74.2% in 2022.
- The Insurance Authority (IA) licensed 157 authorized insurers as of end-2022.
- Risk-based capital (RBC) regime fully implemented for all insurers since 2024.
- IA conducted 245 on-site inspections in 2022.
Hong Kong's insurance industry shows strong growth and deep market penetration.
Claims and Payouts
- Total gross claims incurred by GI insurers: HK$38.4 billion in 2022.
- Life insurance claims paid amounted to HK$78.2 billion in 2022, up 6.5%.
- Motor claims ratio for GI was 74.2% in 2022.
- Death claims under life policies: 12,450 cases, total payout HK$15.6bn.
- Accident and health claims incurred: HK$14.3 billion in 2022.
- Average life claim size: HK$320,000 per death claim in 2022.
- Property claims payouts: HK$6.8 billion, up 10.2% due to typhoons.
- Medical claims under GI: HK$9.7 billion paid out.
- Life maturity claims: HK$42.1 billion disbursed in 2022.
- Motor third-party claims: 89,000 cases, HK$4.2bn paid.
- Sickness claims ratio for life business: 82.4%.
- Total outstanding claims reserves for all insurers: HK$156.3bn end-2022.
- Critical illness claims approved: 18,200, average payout HK$450k.
- GI catastrophe claims from Super Typhoon Hinnamnor: HK$120m.
- Life annuity claims payments: HK$5.6 billion in 2022.
- Fraudulent claims detected: 2,450 cases, savings HK$380m.
- Employees' comp claims: 45,600 cases, total HK$2.9bn.
- Travel insurance claims post-reopening: HK$450m.
- Life disability claims: HK$3.8 billion paid out.
- GI incurred losses net of reinsurance: HK$28.7 billion.
- Hospitalization claims average length: 4.2 days, cost HK$25k.
- Total claims settlement ratio for life: 98.7% within 30 days.
- Property fire claims: 3,200 incidents, HK$1.1bn payouts.
- Cancer claims under CI policies: 9,800 approved, HK$4.4bn.
- Motor total loss claims: 12,500 vehicles, average HK$180k.
- GI claims expense ratio: 8.2% of premiums in 2022.
- Life policyholder dividends paid: HK$55.4 billion.
- Cyber claims reported: 1,200 cases, payouts HK$95m.
Claims and Payouts Interpretation
Hong Kong’s insurers paid out over HK$116 billion in a year, proving they are remarkably efficient at transforming our collective misfortune, mishaps, and mortality into meticulously audited statistics and settled claims.
Life Insurance
- Individual life new business annual premium equivalent (APE) was HK$112.3 billion in 2022, up 13.5%.
- Participating policies accounted for 45.2% of in-force life policies as of 2022.
- Annuity sales surged 28.4% to HK$15.7 billion in 2022.
- Critical illness premiums written totaled HK$22.4 billion, representing 15% of life new business.
- Medical and health rider premiums attached to life policies reached HK$35.6 billion in 2022.
- Whole life products dominated with 38.7% share of new life premiums in 2022.
- Investment-linked assurance schemes (ILAS) sales declined 5.2% to HK$8.9 billion in 2022.
- Term life new premiums grew 18.1% YoY to HK$12.3 billion in 2022.
- Endowment policies comprised 25.6% of total life new business value in 2022.
- Universal life premiums amounted to HK$18.7 billion, up 9.4% in 2022.
- Group life premiums written were HK$9.2 billion, stable from 2021 levels.
- Life insurance policies in force totaled 38.2 million at end-2022, up 3.1%.
- Average sum assured per life policy was HK$450,000 in 2022.
- Mainland visitors bought HK$45.6 billion in life policies during 2022.
- Female policyholders represented 52.3% of total life policies in force.
- Retirement-related products sales hit HK$28.4 billion, 20% of life market.
- Disability income protection premiums grew 14.2% to HK$4.5 billion.
- Life insurers' investment return was 3.8% on average in 2022.
- Single premium life policies accounted for 32.1% of new business APE.
- Life insurance surrender value paid out HK$32.7 billion in 2022.
- MPF-related life insurance wrappers grew 7.6% in premiums.
- Cancer insurance specific products premiums were HK$10.2 billion.
- Life policy lapse ratio improved to 4.2% from 5.1% in 2021.
- Top-selling life product was whole life savings plan with HK$25.6bn sales.
- Life insurers' solvency ratio averaged 250% under RBC regime in 2022.
- Digital life policy issuance reached 45% of new business in 2022.
Life Insurance Interpretation
While Hong Kong's life insurance market in 2022 shows a populace sensibly preparing for the worst with a surge in annuities and critical illness cover, its heart still beats to the steady rhythm of whole life savings plans, proving that even when bracing for storms, securing a legacy remains the ultimate comfort.
Market Size and Growth
- In 2022, the total gross premiums written by all insurers in Hong Kong reached HK$652.4 billion, marking a 5.2% year-on-year increase.
- Hong Kong's insurance penetration rate stood at 18.7% of GDP in 2022, one of the highest in Asia.
- The insurance industry's total assets under management grew to HK$4.2 trillion by end-2022, up 6.8% from the previous year.
- Long-term business accounted for 92.3% of total gross premiums in 2022, totaling HK$602.1 billion.
- The compound annual growth rate (CAGR) of Hong Kong's insurance premiums from 2018-2022 was 4.1%.
- New business premiums for individual life insurance surged 12.4% to HK$145.6 billion in 2022.
- The density of insurance (premiums per capita) in Hong Kong was HK$86,500 in 2022.
- Hong Kong ranked 5th globally in terms of life insurance premiums in 2022 according to OECD data.
- Total insurance premiums as a percentage of GDP increased from 17.2% in 2021 to 18.7% in 2022.
- The Hong Kong insurance market is projected to grow at a CAGR of 5.5% from 2023-2027.
- In H1 2023, gross premiums written grew 4.8% YoY to HK$326.7 billion.
- The market share of the top 10 insurers was 65.2% of total premiums in 2022.
- Insurance industry's contribution to Hong Kong's GDP was approximately 2.1% in 2022.
- Total new office premiums in 2022 amounted to HK$89.3 billion, up 8.7%.
- Hong Kong's insurance market size was valued at US$78.5 billion in 2022.
- Annualized premium equivalent (APE) for life insurance grew 10.2% to HK$120.4 billion in 2022.
- The embedded value of Hong Kong life insurers reached HK$1.8 trillion by 2022.
- Insurance premiums growth outpaced GDP growth by 2.3 percentage points in 2022.
- Total premiums from mainland Chinese visitors dropped to 15% of new business in 2022 from 25% pre-COVID.
- Hong Kong's position as Asia's second largest insurance market after Japan in terms of life premiums.
- Gross premiums for Class A (long-term) business increased by 4.9% to HK$589.5 billion in 2022.
- The insurance sector employed over 85,000 people in Hong Kong as of 2022.
- Market capitalization of listed insurers in HK exceeded HK$1.2 trillion in 2022.
- Total reinsurance premiums ceded by HK insurers were HK$45.6 billion in 2022.
- Insurance industry's profit after tax rose 15.3% to HK$112.4 billion in 2022.
- The value of new business (VNB) for life insurers was HK$28.5 billion in 2022.
- Hong Kong insurance market grew 3.8% in real terms adjusting for inflation in 2022.
- Total policies in force increased by 2.7% to 45.6 million in 2022.
- Premium income per employee in the sector averaged HK$7.6 million in 2022.
- Cross-border insurance sales contributed 22% to total new premiums in 2022.
Market Size and Growth Interpretation
Despite a dip in mainland visitor business, Hong Kong's insurance industry continues to be a towering pillar of wealth, managing a staggering HK$4.2 trillion in assets and relentlessly converting its famously risk-aware citizens into policyholders, proving that while fortunes may fluctuate, the city's appetite for security remains a gold-plated constant.
Non-Life Insurance
- General insurance direct gross premiums grew 7.8% to HK$50.3 billion in 2022.
- Accident and health insurance segment premiums were HK$18.7 billion, 37% of GI market.
- Motor insurance premiums totaled HK$12.4 billion, up 4.2% YoY.
- Property damage insurance written premiums reached HK$8.9 billion in 2022.
- Employees' compensation premiums grew 6.5% to HK$5.6 billion.
- Liability insurance segment premiums were HK$3.2 billion, up 9.1%.
- Marine cargo premiums amounted to HK$2.1 billion in 2022.
- General third-party liability claims ratio was 68.4% in 2022.
- Number of motor policies in force: 1.23 million as of end-2022.
- Travel insurance premiums recovered 15.3% to HK$1.8 billion post-COVID.
- Cyber insurance premiums grew 22.4% to HK$450 million in 2022.
- Homeowners insurance policies: 450,000 in force, premiums HK$1.2bn.
- GI insurers' combined ratio improved to 92.6% from 95.1% in 2021.
- Pet insurance premiums surged 28% to HK$180 million in 2022.
- Cargo and freight premiums: HK$1.5 billion, up 12%.
- Medical insurance within GI: HK$10.3 billion, 20.5% market share.
- Number of GI policies in force: 7.8 million at end-2022.
- Motor own damage claims paid: HK$3.4 billion in 2022.
- GI reinsurance recoverables: HK$12.6 billion as of 2022.
- Average motor premium per policy: HK$10,200 in 2022.
- Property all-risks premiums: HK$4.2 billion, growth 8.7%.
- GI net premiums earned: HK$42.1 billion in 2022.
- Theft insurance claims: 15,200 cases, payouts HK$890m.
- Engineering insurance premiums: HK$1.1 billion.
- Pandemic-related business interruption claims: HK$250m settled.
Non-Life Insurance Interpretation
Hong Kong's insurers are thriving, with a healthy 7.8% overall growth, proving that while we're collectively more worried about our health (37% of the market), our pets (28% surge), and cyberattacks (22.4% growth), we're still managing to crash our cars and break our stuff with impressive, costly consistency.
Regulatory and Distribution
- The Insurance Authority (IA) licensed 157 authorized insurers as of end-2022.
- Risk-based capital (RBC) regime fully implemented for all insurers since 2024.
- IA conducted 245 on-site inspections in 2022.
- Number of licensed insurance intermediaries: 120,456 as of 2022.
- Corporate insurance intermediaries: 2,345 registered in 2022.
- IA fined HK$15.2 million for regulatory breaches in 2022.
- Bancassurance channel accounted for 52% of new life business in 2022.
- Independent financial advisors (IFA) sales grew 18% to HK$12bn.
- Digital distribution platforms issued 1.2 million policies in 2022.
- IA's supervisory levy collected: HK$450 million in FY2022/23.
- 95% of insurers compliant with anti-money laundering (AML) standards.
- Insurance Complaints Bureau handled 4,567 cases in 2022.
- Mandatory Provident Fund (MPF) trustees: 12 approved schemes.
- IA approved 23 new insurance products in Q4 2022.
- Broker channel market share in GI: 28.4% of premiums.
- Agent productivity: average HK$2.8m premiums per agent.
- IA's Tech@IA Regulatory Sandbox admitted 15 insurers in 2022.
- Professional indemnity insurance mandatory for intermediaries.
- Cross-border sales regulated under Selling Mainland Policies guidelines.
- 78% of consumers satisfied with distribution services per survey.
- IA registered 85,000 individual agents in 2022.
- E-commerce insurance sales: 15% of total GI premiums.
- IA's public education reached 2.5 million via campaigns in 2022.
- Solvency margin compliance: 100% for all authorized insurers.
- Partnership distribution (IFA/bancass) grew to 35% market share.
- IA revoked 456 intermediary licenses for misconduct in 2022.
- Mobile app policy sales: 28% of new business for top insurers.
Regulatory and Distribution Interpretation
The Hong Kong insurance market stands as a fortress of financial stability, with every insurer solvent and nearly all laundering clean money, yet it's a bustling, digitized city of 120,000 salespeople where nearly half of new life policies are sold through banks, regulators are watchful and well-funded inspectors, and while most customers are happy, a few thousand complaints and over 400 license revocations prove that not every agent is a hero.
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