Hong Kong General Insurance Gross Written Premium, Hong Kong Health Insurance Sector - Ken Research

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Forming of IIA to strengthen insurance sector in
Hong Kong Ken Research
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The Hong Kong economy is considered to have the
highest degree of economic freedom in the world
and is one of the leading international financial
markets. It has one of the most effective
taxation systems, a low level of corruption, a
very strong banking and legal system and is the
third largest recipient of FDI in the world. The
FDI limit for the insurance sector is 100 which
greatly improves the sectors performance and
attracts many international insurance companies.
Hong Kong is prone to natural disasters such as
floods, storms, earthquakes and wildfires.
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This makes the insurance sector all the more
important. Also, the country has high per capita
insurance premium and is considered to be the
most developed insurance market in the region.
In Hong Kong, the healthcare system is provided
by both public and private companies as well as
domestic and international companies, this makes
the market highly competitive. This sector has
been seeing some growth as there has been a
growth in the consumer awareness regarding the
incentives of insurance. There has been a rise in
healthcare expenditures and a rise in the number
of accidents which add to the growth of this
sector. In addition to this increasing population
and rising disposable income have contributed to
this segment. Health insurance makes up more than
75 of the personal accident and healthcare
insurance.
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According to the research report Personal
Accident and Health Insurance in Hong Kong, Key
Trends and Opportunities to 2020, the main
channel of distribution remains to be insurance
agents but the multi-channel distribution has
been growing rapidly with bancassurance
penetration i.e. the distribution of insurance
products by banks, gaining popularity. The
insurance sector is regulated by the Office of
the Commissioner of Insurance (OCI) which will
now be replaced by Independent Insurance
Authority (IIA) by the Insurance Companies
(Amendment) Ordinance 2015. It will establish a
legal licensing system which will help to protect
the policy holders and for growing the insurance
industry. The CEPA agreement signed with China
will further help in the development of the
industry.
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Recently, AIA International Company one of the
biggest health insurance companies revised its
health claim approval policy for reimbursement of
excessive health procedures at private
hospitals, making it more difficult to get
approvals. This step has been taken due to
medical claims abuse. According to the insurance
company doctors unnecessarily hospitalise
patients who have health insurance, this
increases the premium amount to cover the
increased costs and leads to medical inflation.
To avoid this, the hospitalisation fees for
simple procedures such as colonoscopy,
gastroscopy and cataract surgery would no longer
be covered by the health insurance as they can be
easily be carried out at day care centres. This
can result in loss to people who own health
insurance, as other companies are considering
implementing a similar policy.
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• Bupa (Asia) Ltd,Axa General Insurance Hong Kong
  Ltd,Axa China Region Insurance Company Ltd, Blue
  Cross (Asia-Pacific) Insurance Ltd, CTPI (Hong
  Kong) Ltd, AIA International Company, Prudential
  (Hong Kong) General Liberty International
  Insurance Ltd, Bank of China Group Insurance Ltd
  and Zurich Insurance (Hong Kong) Ltd are the
  major insurance companies that provide personal
  accident and health insurance.
• Key Topics Covered in the Report
• Personal Accident and Health Insurance in Hong
  Kong
• Hong Kong Health Insurance Sector
• Health Insurance Industry Hong Kong
• Hong Kong Health Insurance Research Report
• Hong Kong Health Insurance Regulations
• Hong Kong General Insurance Sector

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• Personal Accident Insurance Gross Written Premium
  Hong Kong
• Hong Kong General Insurance Gross Written Premium
• Hong Kong Health Insurance Market Trends
• Hong Kong Health Insurance Sector Competition
• To know more about the publication, click on the
  link below
• https//www.kenresearch.com/banking-financial-serv
  ices-and-insurance/insurance/personal-accident-hea
  lth-insurance-hong-kong/109202-93.html
• Related reports
• https//www.kenresearch.com/banking-financial-serv
  ices-and-insurance/insurance/personal-accident-hea
  lth-insurance-us-key-trends-opportunities/107674-9
  3.html

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