Hong-Kong Insurance Market Intelligence
Hong Kong is one of the most competitive insurance markets in Asia. The insurance industry has been growing steadily since the 1990s, driven mostly by the life insurance business. Lack of state-sponsored pension schemes and comparatively higher interest rates on insurance products compared to traditional bank products and a growing elderly population have all added to the growth of premium income of the life insurance market of Hong Kong. The industry, however, was hit recently by the global economic slowdown and its resulting effects, like rising unemployment and decreasing income and savings.
Hong Kong has one of the highest per capita expenditure on insurance in the Asian region. The insurance penetration rate is also high as compared to the overall Asian region. The high market density and penetration rate is due to the government efforts and high insurance awareness among consumers. In the forthcoming years, the market is expected to grow at a slower pace due to the slow movement in the life segment; however, it will still remain the dominant segment. The non-life segment will outperform the life segment in terms of growth as it is expected to grow at a higher rate.
The present report gives an overview of the insurance market of Hong Kong along with an analysis of its political structure and economic growth. The report provides an insight into the market size and growth in insurance premiums as well as life and non-life premiums. Insurance premiums are discussed in terms of life and non-life segments and the density and penetration levels. The various developments and drivers are also discussed and finally the projections regarding premium growth are given.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the insurance industry of Hong Kong. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry and its sub-segments life and non-life insurance. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
Hong Kong has one of the highest per capita expenditure on insurance in the Asian region. The insurance penetration rate is also high as compared to the overall Asian region. The high market density and penetration rate is due to the government efforts and high insurance awareness among consumers. In the forthcoming years, the market is expected to grow at a slower pace due to the slow movement in the life segment; however, it will still remain the dominant segment. The non-life segment will outperform the life segment in terms of growth as it is expected to grow at a higher rate.
The present report gives an overview of the insurance market of Hong Kong along with an analysis of its political structure and economic growth. The report provides an insight into the market size and growth in insurance premiums as well as life and non-life premiums. Insurance premiums are discussed in terms of life and non-life segments and the density and penetration levels. The various developments and drivers are also discussed and finally the projections regarding premium growth are given.
By combining SPSS Inc.’s data integration and analysis capabilities with our relevant findings, we have predicted the future growth of the insurance industry of Hong Kong. We employed various significant variables that have an impact on this industry and created regression models with SPSS Base to determine the future direction of the industry and its sub-segments life and non-life insurance. Before deploying the regression model, the relationship between several independent or predictor variables and the dependent variable was analyzed using standard SPSS output, including charts, tables and tests.
1. INDUSTRY SNAPSHOT
1.1 Industry Structure
1.1.1 Insurance Market Consists of General Insurance and Long Term Insurance
1.2 Market Overview
1.2.1 Market Size & Growth
1.2.1.1 One of the Most Competitive Markets in Asia
1.2.1.2 Steady Growth Resulting in Premiums Growing to More than Double
1.2.1.3 Government Efforts and Consumer Awareness Lead to Industry Growth
1.2.2 Market Segments
1.2.2.1 the Life Insurance Segment is the Dominant Segment
1.2.2.2 Increasing Demand for Life Business Driven by Aging Population
1.2.2.3 Health and Accident One of the Biggest Segments in Non-Life Market
1.2.3 Market Density & Penetration
1.2.3.1 Insurance Expenditure Growth On Account of Government Efforts
1.2.3.2 Life Enjoying Higher Density Compared to Non-Life
1.2.3.3 Low Market Density and Penetration Rate Compared to More Advanced Economies of World
1.2.4 Market Share
1.2.4.1 the Life Insurance Market in Malaysia is Dominated by Aig
1.2.4.2 Majority of Insurance Companies Focusing on General Insurance
2. INDUSTRY ANALYSIS
2.1 Industry Developments
Demand for Traditional Life Insurance Products
Reform of Healthcare Funding
Declining Profit of Motor Insurance Segment
2.2 Market Drivers
Strong Economic Growth
Increasing GNP Per Capita Income
High Growth in Accident & Health Insurance Market
Revival in Property Market
3. COUNTRY ANALYSIS: RISK ASSESSMENT
3.1 Political Environment
3.2 Macro-Economic Indicators: Current and Projections
4. INDUSTRY OUTLOOK: FORECAST AND PROJECTIONS
4.1 Hong Kong Insurance Market is Expected to Grow at Slower Pace
4.2 Life, With Negligible Growth, Would Still Dominate the Market
4.3 Non-Life Segment is Expected to Outperform Life Segment in Terms of Growth
LIST OF TABLES
Hong Kong Accident & Health Insurance Premium (2002-2008)
Key Macroeconomic Indicators (2008 – 2013F)
Hong Kong Accident & Health Insurance Premium (2002-2008)
Key Macroeconomic Indicators (2008 – 2013F)
LIST OF CHARTS
Annual Premium – Hong Kong Insurance Industry (2002-2008)
Annual Premium – Hong Kong Insurance Industry (1H09/1H08)
Insurance Premium Share (%) by Segment (2008)
Insurance Premium by Segment (2005-2008)
Life Insurance Premium Share (%) by Segment (2008)
Non-Life Insurance Premium Share (%) by Segment (2008)
Hong Kong Insurance Density (US$) (2001 – 2008)
Hong Kong Insurance Penetration (2001 – 2008)
Hong Kong Major Life Insurer’s Market Share (2007)
Underwriting Results: Motor Insurance Market (2001 – 2008)
Number of Vehicles Insured Vs. Average Premiums (2004 – 2008)
GDP (Value) of Hong Kong (2001 – 2008)
Gross National Savings Growth (2001 – 2008)
Per Capita Income (Value) & Growth (%) (2001 – 2008)
Hong Kong Property Market Growth (Value) (2001 - 2008e)
Hong Kong Insurance Industry (2008A – 2012F)
Hong Kong Life & Non-Life Insurance Industry (2008A – 2012F)
Annual Premium – Hong Kong Insurance Industry (2002-2008)
Annual Premium – Hong Kong Insurance Industry (1H09/1H08)
Insurance Premium Share (%) by Segment (2008)
Insurance Premium by Segment (2005-2008)
Life Insurance Premium Share (%) by Segment (2008)
Non-Life Insurance Premium Share (%) by Segment (2008)
Hong Kong Insurance Density (US$) (2001 – 2008)
Hong Kong Insurance Penetration (2001 – 2008)
Hong Kong Major Life Insurer’s Market Share (2007)
Underwriting Results: Motor Insurance Market (2001 – 2008)
Number of Vehicles Insured Vs. Average Premiums (2004 – 2008)
GDP (Value) of Hong Kong (2001 – 2008)
Gross National Savings Growth (2001 – 2008)
Per Capita Income (Value) & Growth (%) (2001 – 2008)
Hong Kong Property Market Growth (Value) (2001 - 2008e)
Hong Kong Insurance Industry (2008A – 2012F)
Hong Kong Life & Non-Life Insurance Industry (2008A – 2012F)
