The market value of life insurance in Hong Kong will exceed £73 billion in the next four years

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Monday, March 28, 2022 3:52 p.m.

The market value of life insurance in Hong Kong is expected to soar over the next few years, driven by the pandemic-era trend to put its house in order.

The industry is expected to grow at a compound annual growth rate of 6.6% and over 5% in 2022.

GlobalData analysts forecast direct gross written premiums to rise from £53.4 billion in 2021 to £73.6 billion in 2026.

The growth will be “supported by growing demand for protection-related plans, new product development and the resumption of life insurance policy sales to mainland Chinese visitors due to the easing of travel restrictions,” according to insurance analyst Anjuli Srivastava.

The mainland sees a large share of consumers, due to favorable terms and greater flexibility offered compared to policies sold in China, the analytics firm added.

Whole life insurance is the largest segment of the financial center market, with a market share of nearly 65% ​​in 2020. Endowment insurance is the second largest line, having increased by 17.5% in 2020 as demand for high-yield insurance policies exploded amid the rise of Covid-19.

“Hong Kong’s life insurance market is expected to be the third highest in the Asia-Pacific region, after India and China,” Srivastava added.

“The gradual recovery of economic activities and the increase in the sale of life insurance policies to mainland Chinese visitors are expected to support the growth of the Hong Kong life insurance market over the next five years.”

Hong Kong, the largest financial center behind London according to the Global Financial Centers Index, has been hit hard by the pandemic in recent weeks. And although Covid-19 has accelerated premiums written in the market, there is still a long way to go before it rivals London’s insurance industry.

Home to one of the largest insurance markets in the world, London has an industry worth around £220.4 billion in total direct premiums, according to Statista in January.

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