Hong Kong insurance sector to be worth $10.9 billion by 2028

According to data analytics firm GlobalData, the territory’s general insurance sector is expected to grow in terms of gross written premiums (GWP) from around HK$67 billion (US$8.6 billion) in 2024, to around HK$85.6 billion (US$10.9 billion) in 2028.

This includes projected growth of 5.5% between 2024 and 2025.

This growth will be led by Hong Kong’s personal accident and health (PA&H) sector – the largest line of business in the city, which accounts for approximately a third (31.4%) of the sector.

PA&H insurance is expected to grow by 7.2% in 2024, driven by a rise in health awareness, and a recovery in demand for health insurance policies from customers in mainland China following the end of Covid-19-era travel restrictions in December 2022.

Other sectors expected to drive growth in the next four years are liability and property insurance, which constitute 24.1% and 20% of the total general insurance market respectively.

A healthy PA&H sector

“Hong Kong’s general insurance industry witnessed a consistent growth of 5.5% in 2022 and 2023,” said Anurag Baliarsingh, Insurance Analyst at GlobalData. “The growth was supported by a recovery in the demand for health and travel insurance policies from mainland Chinese customers, mandatory insurance classes, and rising medical inflation that resulted in an increase in the premiums for health insurance policies. The trend is expected to continue in 2024 and 2025.”

He added that mainland Chinese customers were attracted to Hong Kong by “superior care, high-quality medical facilities, and shorter waiting times”, as well as options for “additional coverage … not available in the policies offered in mainland China”.

Baliarsingh also noted that an ageing population, a rise in critical diseases, and medical inflation since the Covid-19 pandemic have also supported PA&H insurance growth by stimulating demand – a trend that is expected to continue throughout 2024.

He concluded: “The growth in Hong Kong’s general insurance industry over the next five years is expected to be driven by economic recovery, an increase in inbound tourism, and rising health awareness. However, highly volatile market conditions due to rising inflation levels can impact the profitability of general insurers in the short term.”

Zurich Hong Kong announced that it would offer travel insurance coverage to Hutchison Telecommunications Hong Kong (HTHK) customers in January of this year.