HONG KONG — In a strategic move to bolster its position as a leading regional insurance hub, Hong Kong has enacted new legislation allowing foreign-incorporated companies to seamlessly relocate their legal domicile to the city, opening fresh opportunities for global insurers.
The Companies (Amendment) (No. 2) Bill 2024, passed by the Legislative Council on May 14, introduces a statutory regime for corporate re-domiciliation. Under this framework, overseas insurers can shift their legal incorporation to Hong Kong without dissolving their original entities—a change hailed by industry leaders as a significant step toward regulatory modernization and market openness.
The Insurance Authority (IA) welcomed the amendment, emphasizing its potential to attract insurers already operating locally under foreign registration. “The Amendment Bill is eagerly awaited by authorised insurers incorporated outside Hong Kong but with a prominent local presence,” said IA Chief Executive Clement Cheung. “Their choice of Hong Kong as a home base fully reflects the strengths and allure of our market, driven by connectivity among cities in the Guangdong-Hong Kong-Macao Greater Bay Area.”
The IA plans to work closely with other government bodies to implement the new regime and assist insurers seeking to transition under the law.
Long-Term Insurance Drives Market Momentum
The legislative milestone coincides with encouraging figures from Hong Kong’s insurance industry. According to preliminary 2024 data from the IA, the long-term insurance segment generated HK$637.8 billion in gross premiums. New office premiums—excluding retirement-related products—climbed to HK$219.8 billion, marking a 21.4% increase from the previous year.
Non-linked individual products accounted for the lion’s share, with HK$208.1 billion in premiums, including HK$182.4 billion from participating policies. Linked business held steady at HK$11.2 billion.
Significantly, 70,000 qualifying deferred annuity policies were issued in 2024, adding HK$4.5 billion in premiums. Mainland Chinese visitors continued to play a vital role in Hong Kong’s insurance market, contributing HK$62.8 billion in new premiums from purchases spanning whole life, critical illness, and medical insurance.
Total in-force long-term premiums rose by 11.4% to HK$537.4 billion, while insurers paid out HK$352.5 billion in claims and benefits, reinforcing the market’s strong risk management performance.
General Insurance Sector Shows Profits Across Diverse Lines
Hong Kong’s general insurance sector also posted solid results. Gross written premiums reached HK$100.5 billion, with net premiums totaling HK$69.7 billion. The market reported an operating profit of HK$8.1 billion—HK$3.3 billion of which came from underwriting activities.
Direct general insurance business made up HK$51.4 billion of gross premiums, with accident and health policies leading the category at HK$22.8 billion. General liability, including employee compensation, followed at HK$12.1 billion, with property damage and motor insurance contributing HK$6.2 billion and HK$5.4 billion, respectively.
Despite underwriting losses in areas such as pecuniary loss and accident and health, gains in property and liability lines provided an offsetting effect. Reinsurance inward business added another HK$49 billion in gross premiums, delivering HK$2.1 billion in underwriting profit—primarily from property-related risk coverage.
Projected Growth and Strategic Implications
Looking ahead, Hong Kong’s general insurance sector is poised for steady expansion. Research by GlobalData forecasts a compound annual growth rate (CAGR) of 5.1% through 2029, with gross written premiums expected to rise to HK$85.4 billion (US$10.9 billion). The projection—based on 2025 estimated premiums of HK$69.9 billion excluding reinsurance—closely aligns with current net premium levels, signaling continued resilience and opportunity.
As more international firms explore business insurance coverage in Hong Kong, the new re-domiciliation law enhances the city’s appeal as a secure and transparent market for trustworthy insurance operations. With both regulatory reform and market performance aligning, Hong Kong is reinforcing its role as a vital node in Asia’s growing insurance landscape.
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