Country Profile - Hong Kong

The life market dominates Hong Kong's insurance sector, accounting for 85% of overall premiums. It recorded an 18.9% increase in new premiums in 2013 to US$92.6 billion, while in-force premiums amounted to $248.6 billion, up 15.2% over 2012. Against the backdrop of a highly matured market, an ageing population and rising affluence, many insurers are already venturing into the retirement business and wealth management to meet new consumer demands. The sector has also been boosted by demand from Mainland visitors who are increasingly purchasing insurance products in Hong Kong. Insurers tend to adopt a multi-channel strategy and each of the traditional channels has seen solid growth in recent years. The adoption of technology in service delivery is becoming ever more popular, and many life insurers have invested in this to improve their digital proposition. Below is a snapshot of five key issues impacting the life market in Hong Kong. We also reveal some of the strategies and priorities of several key market players. By Ridwan Abbas