Hong Kong life insurance coverage trade is projected to develop at a compound annual progress charge (CAGR) of 6.6% from HKD543.5bn ($70.0bn) in 2021 to HKD748.6bn ($96.5bn) in 2026, when it comes to direct written premiums (DWP), in line with GlobalData, a number one knowledge, and analytics firm.
Anjuli Srivastava, Insurance coverage Analyst at GlobalData, feedback: “Life insurance coverage trade is forecasted to develop by 5.4% in 2022, supported by the rising demand for protection-linked plans, new product developments, and the resumption within the sale of life insurance coverage insurance policies to mainland Chinese language guests because of easing journey restrictions.”
Complete life insurance coverage was the most important section with a DWP share of 64.8% in 2020. It declined by 1.1% in 2020 as a result of COVID-19 pandemic-led journey restrictions. Previous to the pandemic, a big proportion of entire life insurance coverage premiums have been attributed to Chinese language guests, who bought their insurance policies from Hong Kong because of favorable phrases and larger flexibility supplied to them as in comparison with insurance policies bought in China.
Endowment insurance coverage was the second-largest line with a 13.4% share in 2020. It grew by 17.5% in 2020, pushed by robust demand for top return insurance coverage insurance policies. The introduction of investment-linked insurance coverage with excessive mortality protection is predicted to assist the demand for endowment merchandise. Endowment insurance coverage is predicted to develop at a CAGR of 9.9% throughout 2021-2026.
Normal annuity, which is the third-largest line with a DWP share of 9.3%, was declined by 16.2% in 2020. It’s anticipated to develop at a CAGR of 6.3% throughout 2021-2026, pushed by the demographic elements reminiscent of larger life expectancy. As well as, the introduction of tax advantages on Certified Deferred Annuity Insurance policies in September 2021 will additional assist the demand for annuity merchandise.
Time period life, pension, and different life insurance coverage traces accounted for the remaining 12.5% share.
Srivastava concludes: “Hong Kong’s life insurance coverage market is predicted to be the third-highest within the Asia-Pacific area, after India and China, with a projected CAGR of 6.6% throughout 2021-2026. Gradual resumption in financial actions and improve within the sale of life insurance coverage insurance policies to mainland Chinese language guests are anticipated to assist the expansion of Hong Kong life insurance coverage market over the following 5 years.”