Hong Kong’s Insurance Authority (IA) has published provisional data for the first half of 2025 (H1 2025), indicating total gross premiums of HK$423.4 billion across the market.
The figures, released on Oct. 24, offer insights into both long-term and general insurance business activity during the period.
Within the long-term insurance segment, new office premiums – excluding those from retirement scheme business – were reported at HK$173.7 billion, marking a 50% rise compared to the same period last year.
Of this, non-linked individual business accounted for HK$166.6 billion, with participating policies contributing HK$149.9 billion and other non-linked business at HK$16.7 billion.
Linked individual business premiums reached HK$6.9 billion, reflecting a 60.8% increase year-on-year.
Approximately 44,000 qualifying deferred annuity policies were issued, generating HK$2.8 billion in premiums and representing 1.6% of total individual business.
Revenue premiums from in-force long term policies totalled HK$365 billion, up 33.7% from the previous year.
Non-linked individual business made up HK$321.8 billion, linked individual business HK$12.7 billion, and retirement scheme business HK$26.7 billion.
Claims and benefits paid out during the first half of the year reached HK$191.9 billion, including HK$99.1 billion in lapsation and surrender benefits and HK$92.8 billion in other claims.
In the general insurance sector, gross premiums for the first half of 2025 stood at HK$58.4 billion, with net premiums at HK$39.9 billion. Gross claims paid amounted to HK$25.6 billion.
The sector recorded an overall operating profit of HK$6.5 billion, with underwriting profit contributing HK$1.6 billion.
Direct business generated gross premiums of HK$30.7 billion and net premiums of HK$21 billion, while gross claims paid were HK$13.8 billion.
The largest contributors to direct business premiums were accident & health (HK$14 billion), general liability including employees’ compensation (HK$6.8 billion), and property damage (HK$3.5 billion).
Underwriting profit for direct business reached HK$1.4 billion, mainly from general liability, accident & health, and property damage, although offset by losses in pecuniary loss business.
Reinsurance inward business saw gross premiums of HK$27.7 billion and net premiums of HK$18.9 billion, with property damage, accident & health, and general liability as the main sources.
Gross claims paid in this segment were HK$11.8 billion, and underwriting profit stood at HK$0.2 billion, primarily from property damage, although offset by losses in general liability and motor vehicle business.
The IA noted that, due to the introduction of the Risk-based Capital (RBC) regime on July 1, 2024, comparisons with previous years’ general insurance data may not be appropriate.
The release of these statistics follows the IA’s Annual Report 2024-25, which details regulatory developments and market oversight.
As of the reporting period, the IA supervises 157 authorized insurers and over 118,000 licensed intermediaries.
Over the past year, the authority implemented the RBC regime, increased inspection activity, and reinforced compliance standards.
Supervisory activities included eight on-site inspections, review of 800 statutory returns, and 25 meetings with both international and local regulators.
The IA concluded 85 investigation cases, issued 50 disciplinary actions, and completed its first criminal prosecution of a licensed broker.
Anti-money laundering enforcement resulted in a HK$23 million penalty following the regulator’s largest inspection to date.
“We have chosen the theme of ‘Nurturing New Opportunities Amid Global Uncertainties’ that underscores our determination to bolster partnership with the industry in building resilience against adversities and in identifying new sources of growth,” said IA chairman Stephen Yiu.
CEO Clement Cheung added: “Financial stability and safety, balanced and sustainable growth, as well as fair treatment of customers are priority tasks that will be embedded into our corporate planning process.”
The IA continued to support Hong Kong’s development as a risk management centre, facilitating catastrophe bond issuances totalling HK$6.2 billion under the Insurance-linked Securities regime and extending the ILS Grant Scheme to 2028.
The authority also promoted new products, such as annuities linked to elderly care in the Greater Bay Area.
Environmental and technological initiatives included participation in the Green and Sustainable Finance Cross-Agency Steering Group and the launch of the Cyber Resilience Assessment Framework.
Public outreach expanded through educational campaigns on critical illness, deferred annuities, and youth financial literacy.
The IA resolved 968 complaints, meeting its target of closing 80% within six months.
Financially, the IA reported income of HK$537.8 million and operating expenses of HK$544.3 million for 2024-25, resulting in a deficit of HK$6.5 million.
Staff development remained a focus, with 18,766 training hours completed by its 357 employees.
