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Opportunities for Insurance

A gist of the blog:

Insurance industry is an important element of the diversified financial businesses in Hong Kong. The insurance density and penetration rate of Hong Kong are amongst the best in Asia. As at June 2018, there are about 13 million Individual Life policies in Hong Kong. Insurance industry plays a key role in Hong Kong’s economy, representing 3.7% of the GDP. Last year, the gross premiums of Hong Kong insurance industry were about $489.6 billion, representing an increase of 9.1% over 2016.

The number of service providers in the industry is voluminous. There are about 160 insurance companies with around 100 000 insurance intermediaries, contributing to the economic development and employment of Hong Kong. Hong Kong’s insurance industry is highly competitive, and has become one of our “export” service industries. Last year, new office premiums of policies issued to Mainland visitors in last year was $50.8 billion, representing around 30% of the total new office premiums for individual business.

One of the researches conducted by the Financial Leaders Forum chaired by me is on how to promote the development of Hong Kong’s insurance industry. I have also invited the Insurance Authority to work together with the industry to explore how the competitiveness of Hong Kong as an insurance hub can be enhanced, including measures relating to taxation and regulation. The preliminary findings showed that businesses relating to captive insurers, reinsurance, marine, Guangdong-Hong Kong-Macao Greater Bay Area and Belt and Road initiatives will have tremendous development potentials.

To attract more new blood for the industry, the Government launched a $50 million Pilot Programme to Enhance Talent Training for the Insurance Sector in 2016, in order to provide more professional training and work placement opportunities for the industry. The government will continue to work closely with the Insurance Authority to further enhance talent training.

September 16, 2018