Market Insights Financial Insurances Non-life insurances

Property Insurance - Hong Kong

Hong Kong

The Property Insurance market market in Hong Kong is expected to reach a market size (gross written premium) of €0.78bn in 2024.
By that year, the average spending per capita in the Property Insurance market market is projected to amount to €103.70.
Looking ahead, the gross written premium is expected to experience an annual growth rate (CAGR 2024-2029) of 5.72%.
This steady growth is anticipated to result in a market volume of €1.03bn by 2029.
In a global context, it is worth noting that the United States will generate the highest gross written premium in the Property Insurance market market, estimated to be €220.6bn in 2024.
Despite the recent economic downturn, the property insurance market in Hong Kong continues to thrive due to increasing demand from both local and foreign investors.

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Analyst Opinion

The Property Insurance market in Hong Kong is experiencing significant growth and evolution in recent years.

Customer preferences: Customers in Hong Kong are increasingly seeking comprehensive property insurance coverage to protect their assets in the face of natural disasters such as typhoons and heavy rainstorms, which are common in the region. Additionally, there is a growing demand for innovative insurance products that cater to the unique needs of property owners in Hong Kong's densely populated urban areas.

Trends in the market: One notable trend in the Property Insurance market in Hong Kong is the rise of digital insurance platforms, which are simplifying the process of purchasing and managing property insurance policies. Insurtech companies are leveraging technology to offer more personalized and efficient services to customers, driving competition and innovation in the market. Moreover, there is a growing emphasis on sustainability and green building practices, leading to an increased demand for insurance products that cover eco-friendly property features.

Local special circumstances: Hong Kong's status as a global financial hub and a major business center in Asia has contributed to the growth of the Property Insurance market. The city's high property prices and concentration of valuable real estate assets have made property insurance a crucial investment for individuals and businesses alike. Additionally, Hong Kong's exposure to natural disasters and the risk of political instability have underscored the importance of having robust insurance coverage for properties in the region.

Underlying macroeconomic factors: The steady economic growth and rising disposable incomes in Hong Kong have increased the overall demand for property insurance among individuals and businesses. As the population continues to urbanize and expand, the need for property insurance to safeguard against potential risks and liabilities has become more pronounced. Furthermore, the regulatory environment in Hong Kong is conducive to the development of the insurance industry, providing a stable foundation for insurers to offer a diverse range of property insurance products to meet the evolving needs of customers.

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.