Hong Kong: Typhoons lift territory's insurance penetration rate
Source: Asia Insurance Review | Dec 2018
The Hong Kong insurance market is now the ninth highest in terms of insurance penetration as a percentage of GDP, says Lloyd’s in its underinsurance report titled ‘A world at risk: Closing the insurance gap’.
Lloyd’s published its first underinsurance report in 2012. Hong Kong has increased its insurance penetration more than any nation in the study, with an increase of almost two percentage points between the 2012 and 2018 reports. The territory ranked 31st in terms of insurance penetration as a percentage of GDP in the 2012 report.
There are a number of factors that may have fed into this dramatic uplift, said Lloyd’s. One is the number of severe weather events experienced by Hong Kong in recent years, for example, typhoon Hato and storm Pakhar that hit the island in 2017. Events like these can prompt uplift in insurance take-up as a preventative measure.
Non-life insurance in Hong Kong has grown at a compound annual growth rate of 6% since the 2012 report, and coupled with GDP growth of 3-5% will ultimately result in a rise in insurance penetration. A