“After recovering by 6.1% in 2021, the Hong Kong GDP growth is anticipated to slow down to 1.5% in 2022 thanks to the resurgence in the quantity of COVID-19 instances,” reported Jeneshree Sahoo, insurance policy analyst at GlobalData. “Despite these difficulties, the standard insurance coverage field is forecasted to expand by 5.7% in 2022, driven by a solid efficiency from legal responsibility, home, and monetary strains insurance.”
Particular accident and well being (PA&H) is the largest normal insurance line in Hong Kong with a GWP share of 30.8% or HK$16.9 billion in 2020, when it endured a 4.8% drop because of to pandemic-led lockdown and outbound travel limitations. If constraints simplicity, the PA&H line is expected to get well from 2022 and increase at a CAGR of 5.1% for the duration of 2021–2026 to attain HK$21.4 billion in 2026.
Legal responsibility insurance is the second-major line with a GWP share of 23.9% in 2020. Owing to growing desire for cyber insurance policy policies amid the change distant doing work, the market grew by 8.8% in 2020. The increase in money fraud incidents in the past couple of decades has spurred desire for D&O insurance.
Assets insurance coverage, the third-most significant typical insurance policy line with a share of 18.7%, grew by 13.2% in 2020, driven by enhanced authentic estate and design pursuits.
Economic lines coverage, which had an 8.3% GWP share in 2020, is the fastest-expanding section. It grew by 60.7% in 2020 as premiums rose next the upward adjustment of assets values outlined below the Mortgage Insurance Plan. The remaining 18.3% share consists of motor and maritime, aviation and transit insurance.
“Hong Kong’s minimal coverage penetration … at 1.6% supplies sufficient alternatives for basic coverage progress,” Sahoo mentioned. “A gradual economic restoration, rising cyber challenges and expanding commercial authentic estate activities are predicted to aid growth of basic coverage over the upcoming 5 many years.”