Hong Kong: Insurers look for growth in corporate sector
Source: Asia Insurance Review | Mar 2017
Mandatory employees’ compensation insurance is likely to continue to be a driver for the Hong Kong market in 2017, with businesses seeking premium rate reductions that are currently consistently obtained due to stiff competition, says Aon Risk Solutions in its Asia Market Review 2017.
Corporate insurance and global programmes are areas where insurers are seeking to grow their books, with an increased interest in penetrating the SME segment through the use of structured portfolio solutions, the report adds.
Last year, the Hong Kong market continued its softening trend amidst an economic downturn, with continuing GDP contraction over the past three to four years. A number of sectors have been impacted, with decreasing consumer spending affecting the retail sector, a sluggish export sector affecting manufacturing, and the property market undergoing a prolonged correction.
Meanwhile, Hong Kong’s ageing population and medical inflation continue to be an issue, driving a rise in healthcare premium rates. Demand for private medical care remains high, as a supplement to the public healthcare system.
As an insurance hub in the region, capacity in Hong Kong continues to increase.