Market share of life insurance companies Hong Kong H1 2022, by value of new business

In the first half of 2022, AIA Group had a market share of 11 percent based on the value of new business in Hong Kong. Compared to the previous years, life insurance companies had difficulties generating new business. The insurance company Sun Life had the largest gap because it generated around 57 percent lower premium income.

Post-Covid Sitrep

For an industry that is notoriously averse to risk and rapid change, the past few years have been challenging for the insurance industry in Hong Kong. The COVID-19 pandemic and its effect on the region's economy significantly reduced the income of the sector. Additionally, the economic and political role of the city is evolving and forcing insurers to adapt. Given that the insurance industry generates over four percent of the local GDP, the overall health of insurers is important.

What’s next?

Like insurance companies globally, insurers in Hong Kong have to rethink old practices to embrace upcoming challenges. According to industry analysts, the main challenges include evolving customer needs, the increasing role of artificial intelligence, and climate risks. Compared to other regions, Hong Kong’s insurance providers need to embrace digitalization through Insurtech and focus on the integration of ESG into their business models to stay competitive.