HONG KONG GROSS PREMIUMS DROP BY 1.4%

The gross insurance premiums for Hong Kong in 2005 shot up by 13.2% to HK$137bn, according to figures released by the Hong Kong Commissioner for Insurance. The figure represents 9.9% of Hong Kong’s gross domestic product, an increase on the 9.4% total in 2004. The increase in premiums was offset by a slight drop in general insurance premiums of 1.4% in comparison to 2004, totalling HK$22.55bn. This drop has been attributed to fierce competition in the employees’ compensation market and the subsequent fall in premium rates. The lion’s share of the 13.2% growth in gross premiums came from the life insurance sector which contributed HK$98.18bn or 85.6% of the total sum.