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Insurance Authority issues 1994 Annual Report today
Continued growth of insurance business, coupled with enhanced protection of the interests of policy holders, upholds Hong Kong's status as a major international insurance market.
This was stated in the Annual Report 1994 of the Office of the Commissioner of Insurance and the Registrar of the Occupational Retirement Schemes which was published today (Monday).
Statistics showed that total insurance premiums, comprising general business premiums of $17.1 billion and long term business premiums of $15.5 biilion, increased by 20 per cent to $32.6 billion in 1993.
Underwriting performance for general business turned around from a loss of $13 million in 1992 to a profit of $648 million in 1993. This was largely due to the remarkable underwriting profit of $560 million for motor business compared with a loss of $87 million in 1992.
On the other hand, total number of individual life policies grew by 13 per cent to reach 2.2 million. Contributions for retirement schemes business administered by life insurers also increased by 12 per cent to $4.3 billion.
With 229 authorised insurers in operation, Hong Kong has the highest number of insurers per capita in the world. Of these 229 insurers, 169 write general business, 41 specialise in long term business and the remaining 19 are composite insurers. There are 103 insurers incorporated in Hong Kong while most of the overseas insurers come from the UK and the USA.
To better protect the interests of policy holders, three bills were introduced into the Legislative Council in 1993. These bills were all enacted during 1994 and are now in different stages of implementation.
Following the enactment of these amendment bills, life insurers will be required to maintain more realistic solvency margins which relate to the risk base of their life insurance business instead of keeping a fixed solvency margin. This helps conform to international practice in the supervision of long term insurance business.