Best’s Market Segment Report: Hong Kong’s Non-Life Insurance Segment Shows Growth and Resilience Amid Market Challenges

HONG KONG–(BUSINESS WIRE)–#insurance–Hong Kong’s non-life insurance industry has shown an ability to sustain profitable underwriting during a recent five-year period, which was supported by the performance in the general liability and property damage lines of business, according to a new AM Best report.

Accident & health (A&H) coverage remained the largest contributor to gross written premiums (GWP) during the five-year period between 2020 and 2024, followed by general liability (comprising employees’ compensation) and property damage. When combined with motor, these four lines of business generated close to 89% of Hong Kong’s non-life segment GWP of HKD 100.5 billion (USD 12.9 billion) in 2024.

According to the report, the industry’s overall operating profit reached HKD 8.1 billion in 2024, including HKD 3.3 billion in undiscounted underwriting profits. The 10 largest direct non-life insurers generated a combined underwriting profit of HKD 552.8 million during that same time, equivalent to a 17% share of the overall market underwriting profit.

“The overall performance of Hong Kong’s non-life market is driven by factors such as increased consumer awareness, ongoing regulatory initiatives, and the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) project,” said Stephanie Mi, senior financial analyst, AM Best. “The stable economic environment should also be noted as a factor.”

AM Best’s analysis of this segment is based on data generated by the Hong Kong Insurance Authority. The direct non-life segment is very competitive and no single insurer holds a market share exceeding 10%. The non-life segment also has maintained a generally stable momentum, with GWP growth at around 3%-8% from 2020 to 2023.

A&H remains a significant area of growth over the last few years, driven by a surge in demand for travel insurance and group medical business, especially in the post-pandemic period. Some major non-life insurers have a high business concentration in A&H insurance, which has suffered a marginal underwriting performance in recent years.

Following a slowdown in business caused by the pandemic, the A&H segment has witnessed a rebound in premiums written since 2022, recording year-over-year growth of 12% in 2023, and the momentum continued into 2024.

Compared with underwriting profit, investment income is the larger component of the bottom-line results for Hong Kong’s non-life industry. In terms of investment strategy, the majority of assets owned by the top 30 Hong Kong non-life insurers are invested in cash and fixed income, which comprises 60% on an aggregate basis. The remaining portion consists mainly of equity investments and other unquoted investments.

The moderate economic expansion, combined with external headwinds such as geopolitical conflicts and rising protectionist trade policies, may cause volatility in capital markets by increasing investor uncertainty, disrupting supply chains, constraining trade and investment flows, and impacting asset prices and financial stability. “This combination is a particularly challenging environment for investing, but the shift to the Hong Kong risk-based capital framework is expected to help insurers manage equity investment exposure by aligning capital requirements with actual risk profiles,” Mi said.

To access the full copy of this Best’s Market Segment Report, titled, “Hong Kong’s Non-Life Insurance Segment Shows Growth and Resilience Amid Market Challenges,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=361183.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Stephanie Mi
Senior Financial Analyst
+852 2827 3402
[email protected]

James Chan
Director, Analytics
+852 2827 3418
[email protected]

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
[email protected]

Cynthia Ang
Senior Industry Research Analyst
+65 6303 5026
[email protected]