Share
In the April 2024 edition of Regulatory Insurance Update, our Hong Kong Corporate and Commercial Team provides the latest updates relating to the law and regulations, developments, and news in the insurance industry in Hong Kong.
Updates on insurance law and regulation
No relevant updates.
Insurance industry news and developments
15 March 2024
AIA Group Limited (AIA) released its results for the year ending 31 December 2023. It reports exceptional business performance with growth on multiple fronts in 2023 – most notably in terms of Value of New Business (VONB) (up by 82%), and Annualised New Premiums (ANP) (up by 123%).
The growth in VONB spanned across strategic markets including Mainland China, Hong Kong, the ASEAN region (excluding Vietnam), and India.
Lee Yuan Siong, group chief executive and president of AIA, underscored the diverse business portfolio and robust distribution platform as critical factors behind the significant VONB contributions from its key growth markets:
“AIA has delivered excellent VONB growth and a strong financial performance overall. With continued strong business momentum post the pandemic across the group, we grew ANP by 45% to a record high and VONB was up 33% to more than US$4 billion. Our diversified business portfolio and unrivalled distribution platform have enabled us to generate higher VONB from our key growth engines of ASEAN, Hong Kong, Mainland China, and India as well as double-digit growth from 10 markets.”
According to the Provisional Statistics on Hong Kong Long Term Insurance Business for 2023, AIA Hong Kong topped 10 market share segments, including:
- annualised new premiums;
- number of in-force policies;
- number of new business policies;
- number of onshore new business policies;
- annualised new premiums from agency channel;
- new office premiums from agency channel;
- number of new business policies from agency channel;
- annualised new premiums from brokerage channel;
- number of new business policies from brokerage channel; and
- linked annualised new premiums.
Link to IA’s Provisional Statistics on Hong Kong Long Term Insurance Business for 2023
Link to Insurance Business article 1
7 March 2024
In March 2024, AIA Hong Kong announced the results of its 15th AIA Desired Retirement Tracker, which examines the attitudes of working individuals in Hong Kong towards employment or retirement in other cities in Greater Bay Area (GBA) and their understanding of medical protection cover in the GBA region.
The survey shows that medical insurance remains to be a significant concern, with nearly 90% of respondents who are interested in working or retiring in the GBA acknowledging the necessity of having medical coverage across the GBA region.
However, despite their recognition of the importance of medical insurance, this has not been turned into action. A quarter of the respondents lack adequate post-retirement medical protection, with 13% only having group medical insurance and 12% not owning any medical insurance.
Ms Amelie Shen, Chief Corporate Solutions Officer of AIA Hong Kong and Macau, remarked that "Our latest survey shows that Hong Kong working adults have an open attitude towards working or retiring in other GBA cities. However, it also reveals that they are not well prepared in terms of retirement savings or medical protection, which is concerning. Regardless of where one lives, it is vitally important to have adequate retirement savings and robust medical protection to ensure that people can meet their key expenses and live Healthier, Longer, Better Lives.”
6 March 2024
QBE’s annual insurance survey of small and medium-sized enterprises (SMEs) in Hong Kong offers insights into the prevailing business risks faced by SMEs for the upcoming year.
It reveals that only a fifth of Hong Kong’s SMEs are insured against income loss. A significant portion of SMEs in Hong Kong lack adequate and appropriate insurance coverage for today’s operating environment, leaving them prone to risks such as business interruption and cyberattacks. Concerns over data breaches, business interruption, and infringement of intellectual property rights have seen a notable increase in the past few years.
Other major business challenges for SMEs in Hong Kong include increased costs, staff acquisition and retention, cashflow, access to financing, a shortage of orders, and customer acquisition and retention.
Andex Fung, head of QBE’s SME Segment for Asia , highlighted the significance of addressing these risks through insurance coverage:
“Our survey shows that many SMEs are not covered for the risks they are most concerned about – for example, business interruption, cyber liability and more. This is straightforward to rectify, and I would encourage SME owners and business leaders to start by speaking to their trusted insurer or intermediary to better understand what protection exists – and what the best combination of cover for their business is. Doing so in advance of any negative event will pay dividends.”
Link to Insurance Asia article
Insurance and reinsurance
Hong Kong