ENG-2017 — Page 118

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Financial and Monetary Affairs

During the past five years, the Hong Kong insurance industry grew 13.2 per cent on average annually. In 2017, gross premiums amounted to $489.6* billion, a 8.4 per cent increase over 2016. The total revenue premiums of in-force long-term business rose 8.7 per cent to $441.5* billion. Individual life insurance remained the leading business, accounting for $412.9* billion, or 93.5* per cent, of total revenue premiums, with 12.7* million corresponding policies.

General insurance business rose to $48.1* billion from $45.5 billion in 2016, representing a 5.7 per cent increase in gross premiums. The growth was driven mainly by an increase in gross premiums of accident and health business, comprising medical business. The overall underwriting performance of general insurance business declined from a profit of $1.8* billion to a loss of $0.8* billion.

Statistics on Insurance Business

2015

2016

2017

Number of authorised insurers

157

160

159

Of which:

Incorporated in Hong Kong Incorporated on the Mainland

or overseas

86

87

88

71

73

71

Premium income ($ billion)

374.1

451.7

489.6

Total gross premiums

Of which:

Long-term in-force business

328.1^

406.2^

441.5*#

(Office/Revenue premiums)

General insurance (Gross premiums)

46

45.5

48.1*

^ Office premiums

# Revenue premiums

* Provisional statistics

At the end of 2017, there were 99,264 individual insurance intermediaries, comprising 9,489 Chief Executives or Technical Representatives (TRS) of 759 broker firms, 25,842 Responsible Officers or TRs of 2,447 agency firms, and 63,933 individual agents and their 39 TRs.

Insurance Authority

The IA assumed statutory functions on the regulation of insurance companies on 26 June 2017. It will take over the regulation of insurance intermediaries from the three Self-Regulatory Organisations (SROs) in mid-2019.

The IA is financed by fees payable by insurance companies and insurance intermediaries, user fees for providing specific services by the IA, and a levy on insurance premiums payable by policyholders.

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The three SROs are the Insurance Agents Registration Board established under the Hong Kong Federation of Insurers, the Hong Kong Confederation of Insurance Brokers and the Professional Insurance Brokers Association.

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