30 November 2018
The Insurance Authority (IA) today (30 November 2018) released provisional statistics of the Hong Kong insurance industry for the first three quarters of 2018, with total gross premiums reaching $388.3 billion, indicating an increase of 6.9% over the corresponding period in 2017.
(Percentage changes in brackets in the following paragraphs represent changes over the corresponding period of last year)
Long term business
The total amount of revenue premiums of long term in-force business was $347.8 billion in the first three quarters of 2018 (increased by 6.9%). Revenue premiums of Individual Life and Annuity (Non-Linked) business were $286.3 billion (increased by 2.3%) while those of Individual Life and Annuity (Linked) business amounted to $25.7 billion (increased by 9.9%). Contributions of Retirement Scheme business reached $31.6 billion (increased by 73.6%).
On new business, new office premiums (excluding Retirement Scheme business) of long term business were $121.1 billion (increased by 3.8%), including $107.4 billion from Individual Life and Annuity (Non-Linked) business (increased by 0.5%) and $13.2 billion from Linked business (increased by 44.2%).
New office premiums in respect of policies issued to Mainland visitors totalled $34.1 billion (decreased by 15.8%), accounting for 28.3% of the total new office premiums for individual business. Among these new policies, about 96% were medical or protective in nature, such as critical illness, medical, whole life, term life and annuity products. In terms of premium payment pattern, about 99% of the policies were paid at regular intervals, i.e. non-single premiums.
General business
The gross and net premiums of general insurance business recorded in the first three quarters of 2018 were $40.5 billion (increased by 7.1%) and $28 billion (increased by 7.9%) respectively. Overall underwriting performance turned from a loss of $193 million in the first three quarters of 2017 to a profit of $87 million in the first three quarters of 2018. The performance incorporated the impact of Typhoon Mangkhut as at 30 September 2018.
On direct business, gross and net premiums stood at $30.5 billion (increased by 6.5%) and $21.6 billion (increased by 7.6%) respectively. The growth of gross premiums was mainly driven by Accident & Health business (comprising Medical business), of which the amount was $12.7 billion (increased by 9.5%). Besides, General Liability business (comprising Employees’ Compensation business) and Pecuniary Loss business reported gross premiums of $7.5 billion (increased by 5.3%) and $1.4 billion (increased by 14.9%) respectively. Direct business generated an underwriting profit of $282 million (decreased by 16.4%). However, Motor Vehicle business and Employees’ Compensation business still suffered from the underwriting loss of $226 million and $9 million respectively.
On reinsurance inward business, gross and net premiums reached $10 billion (increased by 9.1%) and $6.4 billion (increased by 8.8%) respectively. Although the underwriting performance improved by 63.2% compared with the first three quarters of 2017, the underwriting performance for the first three quarters of 2018 still recorded a loss of $195 million due to adverse claims experience. Major contributors of the underwriting loss were Goods in Transit business and Proportional Treaty Reinsurance business which recorded losses of $81 million and $74 million respectively.
A summary of provisional statistics of the Hong Kong insurance business for the first three quarters of 2018 is in the annex . Further details are available at the IA website ( www.ia.org.hk ).
Ends