The total amount of revenue premiums of long term in-force business was HK$441.5bn (£40.7bn, $56.3bn, €45.8bn) in 2017, an increase of 9.5% over 2016.
Revenue premiums of individual life and annuity (non-linked) business increased by 10.5% to HK$381.2bn, while individual life and annuity (linked) business increased by 10.9% to HK$31.7bn.
In respect of policies issued to mainland visitors, new office premiums gradually declined during 2017. New office premiums in 2017 decreased by 30.1% to HK$50.8bn when compared with 2016, representing 32.6% of the total new office premiums for individual business.
Previously, mainland Chinese residents would purchase life insurance products in Hong Kong. The Chinese Government clamped down on money leaving via the special administrative region, which has subsequently impacted revenue and premiums for Hong Kong business.
No boost for Chinese insurers?
Interestingly, however, it appears that the money that was previously being spent in Hong Kong, is not being used to buy life insurance in China.
A report from the China Insurance Regulatory Commission (Circ) shows life insurance premium income in China totalled CNY685bn (£78bn, $108bn, €88bn), in January 2018, a 19.9% decline compared to the January 2017 figure of CNY758bn.
This drop is attributed to Circ’s recent crackdown on risky-short term universal life insurance products.
Whether this money is being used to invest in other vehicles or if it is being spent on life insurance in another jurisdiction, remains to be seen.
