The Insurance Authority released provisional statistics of the Hong Kong insurance industry for 2017 on 12 March 2018 .

Total gross premiums of the Hong Kong insurance industry in 2017 amounted to $489.6 billion, representing an increase of 9.1% over 2016.

Long term business

The total amount of revenue premiums of long term in-force business was $441.5 billion in 2017, increased by 9.5% over 2016. Revenue premiums of Individual Life and Annuity (Non-Linked) business increased by 10.5% to $381.2 billion while those of Individual Life and Annuity (Linked) business increased by 10.9% to $31.7 billion. Contributions of Retirement Scheme business decreased by 4.5% to $23.9 billion.

New office premiums (excluding Retirement Scheme business) of long term business for 2017 decreased by 15.7% to $156.4 billion compared with 2016. New office premiums of Individual Life and Annuity (Non-Linked) business decreased by 20.2% to $142.9 billion. On the other hand, those of Individual Life and Annuity (Linked) business increased by 121.3% to $12.7 billion.

In respect of policies issued to Mainland visitors, new office premiums gradually declined to leveled-off state during 2017. New office premiums in 2017 decreased by 30.1% to $50.8 billion when compared with 2016, representing 32.6% of the total new office premiums for individual business.

Similar to the statistics for the first three quarters of 2017, about 95% of the policies issued to Mainland visitors 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 98% of the policies were paid at regular intervals, i.e. non-single premiums.

General business

In 2017, gross and net premiums of general insurance business recorded an increase of 5.5% to $48.1 billion and 5.1% to $33.1 billion respectively compared with 2016. Overall underwriting performance turned from a profit of $1.6 billion to a loss of $792 million due to a combination of Typhoon Hato related loss reported under Property Damage business as well as underwriting loss reported under Employees’ Compensation and Motor Vehicle businesses.
On direct business, gross and net premiums increased by 3% to $36 billion and 2.1% to $25.3 billion respectively in 2017 compared with 2016, mainly driven by Accident & Health business (comprising Medical business) which recorded a growth in gross premiums from $13 billion to $14.4 billion.

The underwriting profit of direct business decreased to $445 million in 2017 from $1.1 billion in 2016. The underwriting loss of Motor Vehicle business and General Liability business (comprising Employees’ Compensation business) worsened from $262 million and $126 million to $395 million and $297 million respectively. Additionally, the underwriting profit of Property Damage business and Ships business shrank from $523 million and $269 million to $209 million and $73 million respectively.

On reinsurance inward business, gross and net premiums increased 13.5% to $12.1 billion and 16.4% to $7.8 billion respectively in 2017 compared with 2016. The underwriting performance turned from a profit of $487 million to a loss of $1.2 billion mainly due to Typhoon Hato related claims.

A summary of provisional statistics of the Hong Kong insurance business for 2017 is in the annex. Further details can be downloaded from the website of the Insurance Authority (www.ia.org.hk).