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
1Total gross claims incurred by GI insurers: HK$38.4 billion in 2022.
Verified2Life insurance claims paid amounted to HK$78.2 billion in 2022, up 6.5%.
Verified3Motor claims ratio for GI was 74.2% in 2022.
Verified4Death claims under life policies: 12,450 cases, total payout HK$15.6bn.
Directional5Accident and health claims incurred: HK$14.3 billion in 2022.
Single source6Average life claim size: HK$320,000 per death claim in 2022.
Verified7Property claims payouts: HK$6.8 billion, up 10.2% due to typhoons.
Verified8Medical claims under GI: HK$9.7 billion paid out.
Verified9Life maturity claims: HK$42.1 billion disbursed in 2022.
Directional10Motor third-party claims: 89,000 cases, HK$4.2bn paid.
Single source11Sickness claims ratio for life business: 82.4%.
Verified12Total outstanding claims reserves for all insurers: HK$156.3bn end-2022.
Verified13Critical illness claims approved: 18,200, average payout HK$450k.
Verified14GI catastrophe claims from Super Typhoon Hinnamnor: HK$120m.
Directional15Life annuity claims payments: HK$5.6 billion in 2022.
Single source16Fraudulent claims detected: 2,450 cases, savings HK$380m.
Verified17Employees' comp claims: 45,600 cases, total HK$2.9bn.
Verified18Travel insurance claims post-reopening: HK$450m.
Verified19Life disability claims: HK$3.8 billion paid out.
Directional20GI incurred losses net of reinsurance: HK$28.7 billion.
Single source21Hospitalization claims average length: 4.2 days, cost HK$25k.
Verified22Total claims settlement ratio for life: 98.7% within 30 days.
Verified23Property fire claims: 3,200 incidents, HK$1.1bn payouts.
Verified24Cancer claims under CI policies: 9,800 approved, HK$4.4bn.
Directional25Motor total loss claims: 12,500 vehicles, average HK$180k.
Single source26GI claims expense ratio: 8.2% of premiums in 2022.
Verified27Life policyholder dividends paid: HK$55.4 billion.
Verified28Cyber claims reported: 1,200 cases, payouts HK$95m.
VerifiedClaims 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
1Individual life new business annual premium equivalent (APE) was HK$112.3 billion in 2022, up 13.5%.
Verified2Participating policies accounted for 45.2% of in-force life policies as of 2022.
Verified3Annuity sales surged 28.4% to HK$15.7 billion in 2022.
Verified4Critical illness premiums written totaled HK$22.4 billion, representing 15% of life new business.
Directional5Medical and health rider premiums attached to life policies reached HK$35.6 billion in 2022.
Single source6Whole life products dominated with 38.7% share of new life premiums in 2022.
Verified7Investment-linked assurance schemes (ILAS) sales declined 5.2% to HK$8.9 billion in 2022.
Verified8Term life new premiums grew 18.1% YoY to HK$12.3 billion in 2022.
Verified9Endowment policies comprised 25.6% of total life new business value in 2022.
Directional10Universal life premiums amounted to HK$18.7 billion, up 9.4% in 2022.
Single source11Group life premiums written were HK$9.2 billion, stable from 2021 levels.
Verified12Life insurance policies in force totaled 38.2 million at end-2022, up 3.1%.
Verified13Average sum assured per life policy was HK$450,000 in 2022.
Verified14Mainland visitors bought HK$45.6 billion in life policies during 2022.
Directional15Female policyholders represented 52.3% of total life policies in force.
Single source16Retirement-related products sales hit HK$28.4 billion, 20% of life market.
Verified17Disability income protection premiums grew 14.2% to HK$4.5 billion.
Verified18Life insurers' investment return was 3.8% on average in 2022.
Verified19Single premium life policies accounted for 32.1% of new business APE.
Directional20Life insurance surrender value paid out HK$32.7 billion in 2022.
Single source21MPF-related life insurance wrappers grew 7.6% in premiums.
Verified22Cancer insurance specific products premiums were HK$10.2 billion.
Verified23Life policy lapse ratio improved to 4.2% from 5.1% in 2021.
Verified24Top-selling life product was whole life savings plan with HK$25.6bn sales.
Directional25Life insurers' solvency ratio averaged 250% under RBC regime in 2022.
Single source26Digital life policy issuance reached 45% of new business in 2022.
VerifiedLife 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
1In 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.
Verified2Hong Kong's insurance penetration rate stood at 18.7% of GDP in 2022, one of the highest in Asia.
Verified3The insurance industry's total assets under management grew to HK$4.2 trillion by end-2022, up 6.8% from the previous year.
Verified4Long-term business accounted for 92.3% of total gross premiums in 2022, totaling HK$602.1 billion.
Directional5The compound annual growth rate (CAGR) of Hong Kong's insurance premiums from 2018-2022 was 4.1%.
Single source6New business premiums for individual life insurance surged 12.4% to HK$145.6 billion in 2022.
Verified7The density of insurance (premiums per capita) in Hong Kong was HK$86,500 in 2022.
Verified8Hong Kong ranked 5th globally in terms of life insurance premiums in 2022 according to OECD data.
Verified9Total insurance premiums as a percentage of GDP increased from 17.2% in 2021 to 18.7% in 2022.
Directional10The Hong Kong insurance market is projected to grow at a CAGR of 5.5% from 2023-2027.
Single source11In H1 2023, gross premiums written grew 4.8% YoY to HK$326.7 billion.
Verified12The market share of the top 10 insurers was 65.2% of total premiums in 2022.
Verified13Insurance industry's contribution to Hong Kong's GDP was approximately 2.1% in 2022.
Verified14Total new office premiums in 2022 amounted to HK$89.3 billion, up 8.7%.
Directional15Hong Kong's insurance market size was valued at US$78.5 billion in 2022.
Single source16Annualized premium equivalent (APE) for life insurance grew 10.2% to HK$120.4 billion in 2022.
Verified17The embedded value of Hong Kong life insurers reached HK$1.8 trillion by 2022.
Verified18Insurance premiums growth outpaced GDP growth by 2.3 percentage points in 2022.
Verified19Total premiums from mainland Chinese visitors dropped to 15% of new business in 2022 from 25% pre-COVID.
Directional20Hong Kong's position as Asia's second largest insurance market after Japan in terms of life premiums.
Single source21Gross premiums for Class A (long-term) business increased by 4.9% to HK$589.5 billion in 2022.
Verified22The insurance sector employed over 85,000 people in Hong Kong as of 2022.
Verified23Market capitalization of listed insurers in HK exceeded HK$1.2 trillion in 2022.
Verified24Total reinsurance premiums ceded by HK insurers were HK$45.6 billion in 2022.
Directional25Insurance industry's profit after tax rose 15.3% to HK$112.4 billion in 2022.
Single source26The value of new business (VNB) for life insurers was HK$28.5 billion in 2022.
Verified27Hong Kong insurance market grew 3.8% in real terms adjusting for inflation in 2022.
Verified28Total policies in force increased by 2.7% to 45.6 million in 2022.
Verified29Premium income per employee in the sector averaged HK$7.6 million in 2022.
Directional30Cross-border insurance sales contributed 22% to total new premiums in 2022.
Single sourceMarket 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
1General insurance direct gross premiums grew 7.8% to HK$50.3 billion in 2022.
Verified2Accident and health insurance segment premiums were HK$18.7 billion, 37% of GI market.
Verified3Motor insurance premiums totaled HK$12.4 billion, up 4.2% YoY.
Verified4Property damage insurance written premiums reached HK$8.9 billion in 2022.
Directional5Employees' compensation premiums grew 6.5% to HK$5.6 billion.
Single source6Liability insurance segment premiums were HK$3.2 billion, up 9.1%.
Verified7Marine cargo premiums amounted to HK$2.1 billion in 2022.
Verified8General third-party liability claims ratio was 68.4% in 2022.
Verified9Number of motor policies in force: 1.23 million as of end-2022.
Directional10Travel insurance premiums recovered 15.3% to HK$1.8 billion post-COVID.
Single source11Cyber insurance premiums grew 22.4% to HK$450 million in 2022.
Verified12Homeowners insurance policies: 450,000 in force, premiums HK$1.2bn.
Verified13GI insurers' combined ratio improved to 92.6% from 95.1% in 2021.
Verified14Pet insurance premiums surged 28% to HK$180 million in 2022.
Directional15Cargo and freight premiums: HK$1.5 billion, up 12%.
Single source16Medical insurance within GI: HK$10.3 billion, 20.5% market share.
Verified17Number of GI policies in force: 7.8 million at end-2022.
Verified18Motor own damage claims paid: HK$3.4 billion in 2022.
Verified19GI reinsurance recoverables: HK$12.6 billion as of 2022.
Directional20Average motor premium per policy: HK$10,200 in 2022.
Single source21Property all-risks premiums: HK$4.2 billion, growth 8.7%.
Verified22GI net premiums earned: HK$42.1 billion in 2022.
Verified23Theft insurance claims: 15,200 cases, payouts HK$890m.
Verified24Engineering insurance premiums: HK$1.1 billion.
Directional25Pandemic-related business interruption claims: HK$250m settled.
Single sourceNon-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
1The Insurance Authority (IA) licensed 157 authorized insurers as of end-2022.
Verified2Risk-based capital (RBC) regime fully implemented for all insurers since 2024.
Verified3IA conducted 245 on-site inspections in 2022.
Verified4Number of licensed insurance intermediaries: 120,456 as of 2022.
Directional5Corporate insurance intermediaries: 2,345 registered in 2022.
Single source6IA fined HK$15.2 million for regulatory breaches in 2022.
Verified7Bancassurance channel accounted for 52% of new life business in 2022.
Verified8Independent financial advisors (IFA) sales grew 18% to HK$12bn.
Verified9Digital distribution platforms issued 1.2 million policies in 2022.
Directional10IA's supervisory levy collected: HK$450 million in FY2022/23.
Single source1195% of insurers compliant with anti-money laundering (AML) standards.
Verified12Insurance Complaints Bureau handled 4,567 cases in 2022.
Verified13Mandatory Provident Fund (MPF) trustees: 12 approved schemes.
Verified14IA approved 23 new insurance products in Q4 2022.
Directional15Broker channel market share in GI: 28.4% of premiums.
Single source16Agent productivity: average HK$2.8m premiums per agent.
Verified17IA's Tech@IA Regulatory Sandbox admitted 15 insurers in 2022.
Verified18Professional indemnity insurance mandatory for intermediaries.
Verified19Cross-border sales regulated under Selling Mainland Policies guidelines.
Directional2078% of consumers satisfied with distribution services per survey.
Single source21IA registered 85,000 individual agents in 2022.
Verified22E-commerce insurance sales: 15% of total GI premiums.
Verified23IA's public education reached 2.5 million via campaigns in 2022.
Verified24Solvency margin compliance: 100% for all authorized insurers.
Directional25Partnership distribution (IFA/bancass) grew to 35% market share.
Single source26IA revoked 456 intermediary licenses for misconduct in 2022.
Verified27Mobile app policy sales: 28% of new business for top insurers.
VerifiedRegulatory 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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