ENG-2020 — Page 105

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Financial and Monetary Affairs

During the past five years, Hong Kong's insurance industry grew 10.2 per cent on average annually. In 2020, gross premiums amounted to $608.4 billion*. The total revenue premiums of in-force long-term business amounted to $548.1 billion*. Individual life and annuity insurance remained the leading business, accounting for $491.6 billion*, or 89.9 per cent* of total revenue premiums, with 14.7 million* corresponding policies.

General insurance business rose to $60.3 billion*. The overall underwriting performance of general insurance business improved to $2.2 billion*, fuelled by direct business.

Statistics on Insurance Business

2018

2019

2020

Number of authorised insurers

161

163

164

Of which:

Incorporated in Hong Kong Incorporated in the Mainland

or overseas

89

92

95

72

71

69

Premium income ($ billion)

514.5

566.9

608.4*

Total gross premiums

Of which:

Long-term in-force business

461.4^

511.5A

548.1*#

(Office/Revenue premiums)

General insurance

53.1

55.4

60.3*

(Gross premiums)

^ Office premiums

# Revenue premiums

Provisional statistics

At the end of 2020, there were 129,313 licensed insurance intermediaries, comprising 88,508 licensed individual insurance agents, 26,644 licensed technical representatives who were agents, 10,998 licensed technical representatives who were brokers, 2,336 licensed insurance agencies and 827 licensed insurance broker companies.

Regulatory and market development initiatives

Supervision of Insurance Groups

As the group supervisor of the AIA Group, FWD Group and Prudential Group, the Insurance Authority (IA) works with regulators from other jurisdictions to promote the effective and coordinated supervision of these groups. In July, legislation was enacted enabling the IA to exercise direct regulatory powers over Hong Kong-incorporated holding companies of these groups.

Tax Deductions for Specified Insurance Businesses

In July, legislation was enacted to halve the profits tax rate of marine and specialty insurance businesses.

Insurance-linked Securities (ILS) and Captive Insurance

In July, legislation put in place a new regulatory regime for the issuance of ILS and expanded the scope of insurable risks for captive insurers set up in Hong Kong.

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