Source: GlobalData
Hong Kong (China SAR) general insurance industry to reach $10.9 billion by 2029, forecasts GlobalData
Posted in Insurance
The general insurance industry in Hong Kong (China SAR) is projected to grow at a compound annual growth rate (CAGR) of 5.1% from HKD69.9 billion ($8.9 billion) in 2025 to HKD85.4 billion ($10.9 billion) by 2029, in terms of gross written premium (GWP), according to GlobalData, a leading data and analytics company.
According to GlobalData’s Hong Kong (China SAR) Insurance Database, the general insurance market in Hong Kong (China SAR) is estimated to reach HKD69.9 billion ($8.9 billion) in 2025, reflecting an annual growth rate of 4.7%. This growth is attributed to the economic recovery, an aging population, increased demand for health insurance products, the occurrence of natural disasters due to climate change, and the increasing demand for liability insurance.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: ” The growth of the general insurance industry in Hong Kong (China SAR) is supported by rising demand for personal accident and health insurance from local and non-local customers, including mainland Chinese residents, the unpredictability of climate events, and the increasing demand for cyber insurance.”
Personal Accident and Health (PA&H) insurance is the largest line of business and is expected to account for 34.7% of the general insurance GWP in 2025. The rising demand for health and travel insurance products from non-local customers has driven the growth of PA&H. Such demand mainly comes from Mainland China, the Middle East, and Southeast Asia. Increased connectivity with the Greater Bay Area (GBA) and the issuance of policies in either Hong Kong dollars or US dollars have supported this growth.
The Insurance Authority (IA) will issue educational materials in Arabic for Middle East clients by Q2 2025 to further support the growing non-local demand. Additionally, increased connectivity to the GBA has provided insurers with access to the affluent population in cities such as Shenzhen and Guangzhou. Easing of restrictions from the GBA on the sales and servicing of insurance products will boost premium growth during 2025-29.
Property insurance is the second-largest line of business with an estimated 22.2% share of the general insurance GWP in 2025. Property insurance, which grew by 9.1% in 2024, is expected to register 7.5% growth in 2025.
Sahoo adds: “The increasing incidents of natural disasters such as typhoons and floods have prompted insurers to reassess risk models and implement stricter underwriting policies. The Hong Kong Government’s investments in infrastructure projects are expected to further enhance the property insurance market as insurers adapt to climate risks and offer innovative solutions like parametric insurance.
Liability insurance is the third-largest line of business, estimated to account for 22.1% of the general insurance GWP in 2025. This line of business is set to grow at a CAGR of 3.4% during 2025-29, driven by the demand for cyber insurance products spurred by rising digital threats. The digitalization efforts in the region will also play a crucial role in the growth of liability insurance in Hong Kong. Small and medium enterprises are increasingly investing in cyber insurance amid rising business risk and to adhere to data privacy laws.
Other general insurance lines, such as motor, financial lines, and marine, aviation, and transit, are estimated to account for the remaining 21.6% share of the general insurance GWP in 2025.
Sahoo concludes: “The growth of Hong Kong’s general insurance market will continue to depend on Mainland China. The country’s super-aging population will present both challenges and opportunities for the general insurance industry. Furthermore, the growing demand for property and cyber insurance will enhance market penetration in the coming years. However, the expected reciprocal tariff from the US will change the dynamics and is expected to emerge as a threat to insurers’ profitability.”