The Hong Kong general insurance market is set for substantial growth, with expectations to expand from HK$67 billion (US$8.6 billion) in 2024 to HK$85.6 billion (US$10.9 billion) by 2028, achieving a compound annual growth rate (CAGR) of 6.3 percent, according to GlobalData.
This growth trajectory includes a forecasted increase of 5.5 percent between 2024 and 2025. The primary driver of this expansion is the personal accident and health (PA&H) insurance sector, which accounts for a significant 31.4 percent of the market. It is projected to grow by a substantial 7.2 percent in 2024.
This surge in the market is primarily attributed to two key factors: heightened health consciousness and the return of demand for health insurance from mainland China. These factors have been significant following the lifting of COVID-19 travel restrictions.
Liability and property insurance sectors in Hong Kong are also significant contributors to the anticipated growth, constituting 24.1 percent and 20 percent of the market, respectively.
According to Anurag Baliarsingh, an Insurance Analyst at GlobalData,
“The growth was supported by a recovery in demand for health and travel insurance policies from mainland Chinese customers, mandatory insurance classes, and rising medical inflation that increased the premiums for health insurance policies. The trend is expected to continue in 2024 and 2025.”
“The growth in Hong Kong’s general insurance industry over the next five years is expected to be driven by economic recovery, an increase in inbound tourism, and rising health awareness. However, highly volatile market conditions due to rising inflation levels can impact the profitability of general insurers in the short term,”
he added.
Featured image credit: Edited from Freepik
