In an interview with the regulator, Commissioner Annie Choi from the Office of the Commissioner of Insurance (OCI) talks about the work being done to get insurance rules up to international standards to make the industry fit for future growth.
By Ridwan Abbas
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Hong Kong's general insurance market has experienced strong growth in recent years with gross premiums showing a CAGR of about 10% from 2007 to 2013. Gross premiums grew 7.1% last year to HK$42.1 billion (US$5.4 billion), and the industry recorded underwriting profit of HK$3 billion.
The market is heavily fragmented and intermediated with 95 non-life players and 20 composite players, 636 brokers and 2,400 agency personnel. It has traditionally been a very competitive market, but more so in the last year with a number of players eyeing aggressive top line growth and entering into new market segments to increase premiums.
Asia Insurance Review speaks to five prominent players in Hong Kong's non-life segment to get a sense of some of the priorities, challenges and opportunities. Below are seven key take-aways from the market.
We also reveal more about the individual sentiments and outlook for various companies.
By Ridwan Abbas
The life market dominates Hong Kong's insurance sector, accounting for 85% of overall premiums. It recorded an 18.9% increase in new premiums in 2013 to US$92.6 billion, while in-force premiums amounted to $248.6 billion, up 15.2% over 2012.
Against the backdrop of a highly matured market, an ageing population and rising affluence, many insurers are already venturing into the retirement business and wealth management to meet new consumer demands.
The sector has also been boosted by demand from Mainland visitors who are increasingly purchasing insurance products in Hong Kong.
Insurers tend to adopt a multi-channel strategy and each of the traditional channels has seen solid growth in recent years.
The adoption of technology in service delivery is becoming ever more popular, and many life insurers have invested in this to improve their digital proposition.
Below is a snapshot of five key issues impacting the life market in Hong Kong. We also reveal some of the strategies and priorities of several key market players.
By Ridwan Abbas
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The Hong Kong Federation of Insurers (HKFI) recently appointed Mr Jimmy Poon as its newest Chairman at what is an important period for the HKFI as it works out a smooth transition to the Independent Insurance Authority (IIA) and seeks a new blueprint for its future role.
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By Ms Charlotte Robins, partner, and Ms Gillian Young, associate, both from Norton Rose Fulbright Hong Kong.