More Hong Kongers are starting to act upon their future, instead of just worrying about it. This has been evident in Hong Kong’s Insurance Authority’s annual report with the Individual Life business remaining to be the dominant line in the business, making up HK$458.5b or around 87.9% of total long-term business. The report also saw a modest rise in total office premiums for in-force long-term business by 2% to HK$521.4b in 2020.
What probably slowed down the long-term business is the 20.9% decrease in office premiums for new individual life business to HK$119.6b in 2020, including HK$106.8b from Individual Life (NonLinked) business and HK$12.7b from Linked business, which recorded a decrease of 23.4% and an increase of 8.8%, respectively. The total number of new policies decreased by 20.8% to 1 million in 2020. Office premiums for the new Individual Annuity business decreased by 36.3% to HK$13.3b.
Meanwhile, the general insurance market performed admirably despite the considerable challenges in the past two years. Total gross written premiums recorded a growth rate of 8% to HK$59.8b in 2020. Overall underwriting profit hit HK$2.3b, a major increase from HK$869m in 2019.