HongKong Insurance

As a main hub of capital markets and fund managers, Hong Kong economy offers an excellent environment for insurers and reinsures. The Hong Kong insurance market acts as a most important pillar for its economy as it bestows job to majority of population. A leader in financial services and insurance sector in Asia, Hong Kong possess the largest number of authorized insurance companies. This clearly proves that one can not take insurance business for granted. According to code of conduct, one has to become authorized insurer, by approval of an association of underwriters approved by the Insurance Authority. The minimum requirements for authorization include the paid-up capital, solvency margin, fitness and properness of directors and controllers, and adequacy of reinsurance arrangements. These requirements relate to the need for a viable business plan and a physical presence in Hong Kong.

As per surveys in 2004 of Census & Statistics Department, there were 181 authorized insurers present in Hong Kong, of which 117 were pure general insurers, 45 were pure long-term insurers and the rest were composite insurers. Hong Kong’s general insurance business sector has huge foreign direct investment and its gross and net premiums are expanding with growth rate of 12.5%.

Few insurance companies of Hong Kong are ACE Insurance Limited, AIG United Guaranty Insurance (Asia) Limited, American International Assurance Company, Limited, Anglo Starlite Insurance Company Limited, Asia Insurance Company Limited, Wing Lung Insurance Company Limited, Tugu Insurance Company Limited, Tokio Marine and Fire Insurance Company (Hong Kong) Limited, Sincere Insurance & Investment Company Limited, Pacific Prime Insurance Brokers, Mass Mutual Asia Limited, MetLife Fubon Limited, Metropolitan Life Insurance Company of Hong Kong Limited, Min Xin Insurance Company Limited. The biggest insurance company worldwide, the French AXA Group, also established its Asia Pacific headquarters in Hong Kong because of its sharp economic activities. All of these insurance companies provide life and/or non-life insurances. Different types of life insurance offered are Life insurance, Term Life insurance, Endowment insurance, Whole life insurance, Universal life insurance and Unit linked long term insurance.

The growth of awareness and benefits of insurance in the event of adversity through diversification of risks has revolutionized the basic structure of the Hong Kong industry from a manufacturing-based environment into a serviced-based environment. The insurance sector of Hong Kong is the best example of accelerating economy.