How stable is Hong Kong’s insurance market?

Hong Kong saw $13.1b (HK$100.5b) in general insurance gross premiums for 2024. 

Hong Kong’s insurance market remained stable in 2024 and reinforced its position as a regional reinsurance hub, according to Gallagher Re’s Asia Pacific Market Watch.

The market had 157 authorised insurers, with strong international participation and continued demand for Hong Kong as a gateway to mainland China.

The Insurance Authority reported $13.1b (HK$100.5b) in general insurance gross premiums for 2024. 

The figure reflects both domestic and offshore reinsurance activity and is not comparable to 2023 due to the new Risk-Based Capital regime, which shifts reporting to an accident-year basis.

Direct business generated $6.68b (HK$51.4b), led by accident and health, general liability, property damage, and motor lines. Inward reinsurance totalled $6.37b (HK$49b).

Industry operating profit reached $1.05b (HK$8.1b), including $0.43b (HK$3.3b) in underwriting profit. 

With no major catastrophe losses in 2024, insurers continued strengthening their catastrophe modelling and reinsurance protection.

Integration with the Greater Bay Area advanced after China’s State Council designated Hong Kong as a strategic risk management centre in 2025. 

Mutual recognition of prudential supervision is progressing, and a pilot programme now allows Hong Kong vehicles to enter Guangdong via the Hong Kong–Zhuhai–Macao Bridge without quotas. 

Mainland regulators are also supporting Hong Kong’s insurance-linked securities regime.

Regulatory reforms continued to shape the market. The RBC regime prompted some capital strengthening, whilst IFRS 17 implementation remained steady. 

New climate disclosure rules and rising cyber risks increased the focus on risk management. Digital asset reforms introduced licensing regimes for custodians, trading platforms, and stablecoin issuers, which may drive further insurance demand.

Primary market pricing showed moderate firming in 2024, with property rates up 5–10% for catastrophe-exposed risks. 

Reinsurance conditions softened in 2025, with 10% to 15% rate drops on loss-free excess-of-loss programmes and small commission increases on proportional treaties as regional reinsurers added capacity.

Key challenges include higher capital requirements, competitive pricing pressure, and cautious economic sentiment. 

Growth opportunities remain in Greater Bay Area integration, Hong Kong’s reinsurance role, and potential changes to motor insurance if legislation to regulate ride-hailing services such as Uber moves forward later this year.

($1.00 = HK$7.78)