Workers' compensation cover problems inhibit market development

In addition to softening premium rates, the workers' compensation sector is also faced with a host of other challenges

Workers' compensation cover problems inhibit market development

Despite a robust recovery in the Hong Kong economy, the growth opportunities for the island's non-life insurance market continue to be limited by problems in the local workers' compensation insurance sector where soft market conditions have prevailed since 2004. In a special report on the market, Fitch Ratings singles out renewed price competition in the sector amongst insurance carriers as a significant negative factor for the market as a whole.