Hong Kong’s general insurance industry generated gross written premiums (GWP) of HK $108.5 billion in 2025, an increase of 8% compared with the previous year, according to AM Best, an international credit rating agency specialising in the insurance sector.
The agency attributed the increase to higher premium volumes across direct insurance operations and inward reinsurance business.
In its report, Health and Property Lines Drive Hong Kong’s Non-Life Insurance Growth, AM Best identified continued competition as a significant feature of the territory’s non-life insurance market. Figures from the agency showed that 87 insurers were authorised to conduct exclusively non-life business as of 31 March 2026, leaving companies competing for customers in an environment characterised by pricing pressures and constrained margins.
The agency described the industry as highly fragmented, with none of the participating insurers controlling more than a tenth of the market. This competitive landscape has presented difficulties for companies seeking to increase their premium income through organic business development.
Health-related coverage continued to account for the largest proportion of non-life insurance activity. According to AM Best, accident and health (A&H) policies represented 37% of market premiums, while property damage and general liability, including employees’ compensation insurance, retained broadly unchanged shares between 2024 and 2025.
The A&H category recorded annual premium growth of 14.5% in 2025, even as rising healthcare expenses continued to affect insurers’ underwriting margins. AM Best linked the increase to demand from local policyholders, demographic changes associated with an ageing population and Hong Kong’s established position as a destination for private medical treatment and insurance protection serving customers across borders.
“The rapid physical integration of the Greater Bay Area, a major urban and economic cluster in southern China that connects Hong Kong and Macau with nine cities in Guangdong province, has also led to considerable non-local demand,” commented Cynthia Ang, Senior Industry Research Analyst, AM Best.
Demand for property insurance also increased, with AM Best pointing to a greater need for commercial risk protection amid more frequent catastrophic incidents. The agency further identified expanding inward reinsurance portfolios as a contributor to the segment’s premium growth.
Nevertheless, the property market experienced a marked reduction in underwriting earnings. AM Best reported that underwriting profit from direct property damage policies fell by 87%, largely reflecting claims expenditure and the establishment of significant reserves following the Wang Fuk Court fire in November 2025.
“A material portion of the gross incurred losses from the Wong Fuk Court fire was transferred to reinsurers, with limited impact on pricing. However, the scale of the event has caused primary insurers and reinsurers to reassess their risk appetite and strategy, leading to stricter underwriting standards, particularly for high-rise renovations and high-risk construction locations,” added Stephanie Mi, Senior Financial Analyst, AM Best.
In the employees’ compensation insurance market, AM Best reported a more favourable underwriting outcome during 2025. The release of reserves associated with earlier underwriting years contributed to improved results and helped reduce the segment’s combined ratio.
The agency also examined developments in Hong Kong’s insurance regulatory framework, noting efforts to maintain market stability while creating conditions for further industry expansion. AM Best indicated that targeted regulatory initiatives aimed at reducing compliance complexity and supporting sustainable business practices form part of this approach.
