New office premiums slide by 27pc in HK

Friday, May 29, 2020

The Insurance Authority announced that the first-quarter gross premiums grew by 10.9 percent year-on-year to HK$165 billion, but there was a near 60 percent drop of new office premiums in respect of policies issued to mainland visitors.

Total revenue premiums of in-force long term business were HK$146.7 billion in the first quarter, up by 11 percent, mainly comprising HK$124.4 billion of individual life and annuity (non-linked) business, up by 7.3 percent, HK$6.4 billion of individual life and annuity (linked) business, down by 2.7 percent, and HK$13.9 billion of retirement scheme business, higher by 72.7 percent.

New office premiums, excluding retirement scheme business of long term business were HK$35.1 billion, down  by 27.5 percent, made up of HK$$32.5 billion related to Individual life and annuity business, dropped by 28.8 percent.

New office premiums in respect of policies issued to mainland visitors were HK$5.4 billion, down by 57.7 percent, making up 15.5 percent of the total individual business.

Restrictions imposed on cross-boundary passenger traffic to contain the virus outbreak caused premiums to contract by 27 percent on a quarterly basis.

Critical illness and whole life products continued to dominate as before, representing 48 percent and 37 percent of new policies taken out by mainland visitors respectively.