KUALA LUMPUR, Nov 10 (Bernama) -- Hong Kong’s non-life insurance gross written premiums grew eight per cent year-on-year to HK$108.5 billion in 2025, driven by growth in direct business and inward reinsurance, according to a report by global credit rating agency AM Best. (HK$100 = RM51.66)
The report, “Health and Property Lines Drive Hong Kong’s Non-Life Insurance Growth”, noted that Hong Kong had 87 authorised non-life insurers as of March 31, 2026, creating tight price competition and margin pressure that make organic growth difficult for some companies.
In a statement, AM Best said accident and health insurance, the largest segment with 37 per cent of the market, grew 14.5 per cent, supported by strong demand, an ageing population and Hong Kong’s role as a regional hub for private medical services, despite pressure from medical inflation.
“The rapid physical integration of the Greater Bay Area, a major urban and economic cluster in southern China that connects Hong Kong and Macau with nine cities in Guangdong province, has also led to considerable non-local demand,” said AM Best senior industry research analyst, Cynthia Ang.
Property insurance also grew on higher demand for commercial cover amid more frequent catastrophes, but underwriting profit for direct property damage business fell 87 per cent, largely because of claims and reserves following the Wang Fuk Court fire in November 2025.
AM Best senior financial analyst, Stephanie Mi said a large part of the losses from the fire was passed to reinsurers, with limited impact on pricing, but that the scale of the event had led insurers to tighten underwriting standards, particularly for high-rise renovations and high-risk construction sites.
The market remains highly fragmented, with no single company holding more than 10 per cent market share, while releases of reserves set aside in previous years helped improve underwriting results for employees’ compensation insurance in 2025.
AM Best also said regulatory initiatives to streamline compliance are supporting the industry’s sustainable growth.
-- BERNAMA