Life insurance - Hong Kong

Hong Kong

The Life insurance market market in Hong Kong is expected to reach a projected market size (gross written premium) of €66.76bn by 2024.
The average spending per capita in the Life insurance market market is estimated to be €8.90k in 2024.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 2.10%, resulting in a market volume of €74.07bn by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of €1,182.0bn in 2024.
Hong Kong's life insurance market is experiencing a surge in demand due to the growing awareness of the need for financial protection and retirement planning.

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Región

Comparación de regiones

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Analyst Opinion

Over the past few years, the Life insurance market in Hong Kong has been experiencing significant growth and development.

Customer preferences: Customers in Hong Kong are increasingly seeking life insurance products that offer not only financial protection but also investment opportunities. There is a growing demand for policies that provide a combination of life coverage and savings or investment benefits, reflecting a trend towards holistic financial planning.

Trends in the market: One notable trend in the Hong Kong life insurance market is the rise of digital insurance services. Insurers are leveraging technology to offer convenient online platforms for policy purchases, claims processing, and customer service. This shift towards digitalization has not only improved efficiency but also enhanced the overall customer experience. Moreover, there is a noticeable increase in the popularity of health and wellness-related insurance products in Hong Kong. With a growing awareness of the importance of health and preventive care, insurance offerings that include coverage for critical illnesses, medical expenses, and wellness programs are gaining traction among consumers.

Local special circumstances: Hong Kong's status as a major financial hub in Asia plays a significant role in shaping the local life insurance market. The city's well-established regulatory framework, strong consumer purchasing power, and high insurance penetration rate contribute to a competitive and dynamic industry landscape. Additionally, the presence of a large expatriate population in Hong Kong creates a diverse market with varying insurance needs and preferences.

Underlying macroeconomic factors: The robust economic growth and stable employment market in Hong Kong have bolstered consumer confidence and disposable income levels, driving the demand for life insurance products. Furthermore, the low interest rate environment has prompted individuals to seek alternative ways to grow their wealth, leading to an increased interest in investment-linked insurance policies. Overall, the favorable macroeconomic conditions in Hong Kong have provided a conducive environment for the continued expansion of the life insurance market.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.