Addressing an audience at Hong Kong FinTech Week 2024, Hong Kong Insurance Authority (IA) chief executive Clement Cheung outlined the regulatory priorities shaping Hong Kong’s insurance sector, with a strong focus on technological advancement, cybersecurity, and climate-related risks.
The IA, in partnership with Invest Hong Kong, held its InsurTech Forum on the second day of Hong Kong FinTech Week 2024, focusing on the intersection of insurance, technology, and regulation.
The event provided a platform for industry leaders and technology specialists to discuss key developments in insurance innovation and evolving risks.
Cheung (pictured) emphasised in his keynote speech the critical need to address climate and cybersecurity threats affecting the sector.
He outlined the IA’s initiatives in several areas, including:
Cheung highlighted the IA’s approach to AI adoption, underscoring the need for regulatory balance.
“Although Al is a powerful tool capable of producing positive results in client acquisition, policy underwriting, customer service, claims settlement, and fraud detection, it must be complemented by human oversight,” he said.
He added that the IA’s short-term objective is to develop a regulatory framework that promotes AI’s fair, transparent, and ethical application.
The forum included panels on several topics, including AI, data analytics, and next-generation technologies, with details available on the Hong Kong FinTech Week 2024 website.
Separately, the IA released provisional data on the insurance sector’s performance for the first half of 2024 (1H 2024), noting a 5.1% rise in total gross premiums, which reached HK$310.9 billion compared to the same period in 2023.
The report highlighted both growth areas and challenges within long-term and general insurance sectors.
In 1H 2024, revenue premiums for in-force long-term insurance reached HK$273 billion, reflecting a 5.5% increase from 2023. This total includes HK$243.3 billion from individual life and annuity (non-linked) policies, which grew by 6.9%.
However, individual life and annuity (linked) business recorded a 16% decline, amounting to HK$10.7 billion.
The retirement scheme segment showed a modest 1.9% increase to HK$15.1 billion. During the same period, claims and policyholder benefits rose 18.2% to HK$183.6 billion.
New premiums for long-term business, excluding retirement schemes, reached HK$115.9 billion, a 12.3% rise from the previous year. This included HK$111.3 billion from individual life and annuity (non-linked) policies, up 15.5%, while linked policies dropped by 34.7% to HK$4.3 billion.
The IA reported that around 44,000 qualifying deferred annuity policies were issued in the first half of 2024, generating HK$2.8 billion in premiums, which represents about 2.4% of total individual premiums.
Premiums from Mainland Chinese visitors to Hong Kong’s insurance sector decreased by 6.9% to HK$29.7 billion, with their share of new office premiums in the individual business category falling from 31% to 25.7%. Of these policies, 97% were regular premium policies, with the majority being whole life, critical illness, and endowment products, accounting for 59%, 29%, and 3% of sales, respectively.
