Hong Kong General Insurance Market Analysis (2025–2029) and Global Comparison
- EverBright Actuarial
- Jul 24
- 5 min read
The Hong Kong general insurance market is projected to grow from $8.9 billion in 2025 to $10.9 billion by 2029, at a compound annual growth rate (CAGR) of 5.1%.
Key drivers include demand for personal accident and health (PA&H) insurance, property insurance, and cyber insurance, fueled by demographic shifts, climate events, and digitalization. Challenges include potential U.S. reciprocal tariffs impacting profitability.
This report analyzes Hong Kong’s market, segmented by product lines, and compares it with Singapore, China, the UK, the United States, and Australia, incorporating recent data for a comprehensive global perspective.
Market Overview
Hong Kong’s general insurance market is expected to grow from $8.9 billion in 2025 to $10.9 billion by 2029, with a year-on-year growth rate of 4.7% in 2025. Growth is driven by:
Demand for PA&H Insurance: Local and non-local customers, particularly from Mainland China, the Middle East, and Southeast Asia.
Climate Events: Increased typhoons and floods boosting property insurance.
Cyber Insurance: Rising digital threats and data privacy regulations.
Greater Bay Area (GBA) Connectivity: Dual-currency policies (HKD/USD) and cross-border demand.
Demographic Shifts: Aging population increasing health and accident coverage needs.
Potential U.S. tariffs pose a profitability risk, as noted by Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData.
Market Segmentation of Hong Kong General Insurance Market
The market is segmented into PA&H, property, liability, and other lines (motor, financial lines, marine, aviation, and transit). The table below outlines projected market share and growth rates for 2025.
Segment | GWP Share (2025) | CAGR (2025–2029) | Key Drivers |
Personal Accident & Health (PA&H) | 34.7% | Not specified | Demand from local/non-local customers, aging population, cross-border travel |
Property Insurance | 22.2% | 7.5% (2025) | Climate events (typhoons, floods), government infrastructure investment |
Liability Insurance | 22.1% | 3.4% | Cyber insurance demand, data privacy regulations |
Other (Motor, Financial Lines, MAT) | 21.6% | Not specified | Economic recovery, cross-border business with Mainland China |
Personal Accident and Health (PA&H) Insurance
Market Share: Largest segment at 34.7% of GWP in 2025.
Growth Drivers: Health awareness, aging population, and non-local demand, particularly from Mainland China. The Insurance Authority plans Arabic-language educational materials by Q2 2025 for Middle Eastern clients.
2023 Performance: GWP for A&H reached $18.9 billion, up 13.2%, driven by travel and group medical business.
Property Insurance
Market Share: 22.2% of GWP in 2025.
Growth: 9.1% in 2024, projected at 7.5% in 2025.
Drivers: Climate risks prompting tighter underwriting and parametric insurance. Government infrastructure investments support growth.
2023 Performance: Property damage business recorded $6.2 billion in direct premiums, up 10.3%.
Liability Insurance
Market Share: 22.1% of GWP in 2025, with a CAGR of 3.4% through 2029.
Growth Drivers: Cyber insurance demand from SMEs due to digital threats and data privacy compliance.
2023 Performance: General liability, including employees’ compensation, recorded $12.1 billion in direct premiums.
Other Segments
Market Share: 21.6% of GWP in 2025.
Components: Motor, financial lines, and marine, aviation, and transit (MAT).
Drivers: Economic recovery and GBA connectivity, with motor insurance benefiting from cross-border travel.
Comparative Analysis: Hong Kong vs. Singapore, China, UK, US, and Australia
The table below compares Hong Kong’s general insurance market with Singapore, China, the UK, the US, and Australia based on GWP, growth rates, and market dynamics.
Country | GWP (2025, USD) | CAGR (2025–2029) | PA&H Share (2025) | Property Share (2025) | Liability Share (2025) | Key Trends |
Hong Kong | $8.9b | 5.1% | 34.7% | 22.2% | 22.1% | Aging population, GBA connectivity, cyber insurance, climate risks |
Singapore | $5.0b (est.) | 4.0% (life, 2025–29) | 32.0% (Vietnam proxy) | Not specified | Not specified | Digitalization, regulatory reforms, high market concentration |
China | $167.1b (South Korea proxy) | 3.4% (South Korea) | Not specified | Not specified | Not specified | Rapid digitalization, regulatory changes, cross-border demand |
UK | $80.0b (est.) | 2.5% (est.) | 25.0% (est.) | 20.0% (est.) | 20.0% (est.) | Cyber insurance growth, sustainability focus, stable market |
United States | $3,930.0b | 2.0% (est.) | 30.0% (est.) | 25.0% (est.) | 20.0% (est.) | High insurance penetration, cyber insurance rate declines, natural catastrophes |
Australia | $40.0b (est.) | 3.0% (est.) | 28.0% (est.) | 22.0% (est.) | 18.0% (est.) | Climate-driven property demand, regulatory changes, stable growth |
Singapore
GWP and Growth: Estimated at $5.0 billion in 2025, with a life insurance CAGR of 4.0% (2025–2029). General insurance growth is likely similar, driven by digitalization and regulatory reforms.
Market Dynamics: Highly concentrated, with the top 10 insurers holding 95% of life insurance market share. PA&H is significant (32.0% in Vietnam as a proxy). Cyber insurance grows due to digital threats.
Comparison: Singapore’s market is smaller but stable, with advanced digital infrastructure. Hong Kong’s GBA connectivity drives cross-border demand, giving it an edge.
China
GWP and Growth: Estimated at $167.1 billion in 2025 (South Korea proxy), with a CAGR of 3.4%.
Market Dynamics: Rapid digitalization, regulatory changes, and cross-border demand (e.g., Hong Kong policies for Mainland Chinese). Aging population boosts PA&H demand.
Comparison: China’s market is significantly larger, but Hong Kong’s mature regulatory framework and dual-currency policies attract Mainland clients.
United Kingdom
GWP and Growth: Estimated at $80.0 billion in 2025, with a CAGR of 2.5%. The market is mature with stable growth.
Market Dynamics: PA&H (25.0%), property (20.0%), and liability (20.0%) are less dominant than in Hong Kong. Cyber insurance grows among SMEs, with a focus on sustainability.
Comparison: The UK’s market is larger but grows more slowly. Hong Kong’s climate-driven property insurance and GBA connectivity are unique advantages.
United States
GWP and Growth: Projected at $3,930.0 billion in 2025, with an estimated CAGR of 2.0%. The U.S. leads globally in GWP.
Market Dynamics: High insurance penetration (12% of GDP in 2022). PA&H (30.0%), property (25.0%), and liability (20.0%) are significant. Cyber insurance rates are declining due to competitive capacity, but natural catastrophes (e.g., storms) drive property insurance costs.
Comparison: The U.S. market dwarfs Hong Kong’s in scale and penetration. Hong Kong’s growth rate is higher, driven by regional dynamics and climate risks.
Australia
GWP and Growth: Estimated at $40.0 billion in 2025, with a CAGR of 3.0%. Growth is stable, driven by property and casualty markets.
Market Dynamics: PA&H (28.0%), property (22.0%), and liability (18.0%) are key segments. Climate events (e.g., tornadoes, hailstorms) increase property insurance demand. Regulatory changes support growth, but motor insurance faces price competition.
Comparison: Australia’s market is larger than Hong Kong’s but grows more slowly. Both face climate-driven property insurance demand, but Hong Kong’s GBA integration is a unique driver.
Challenges and Opportunities
Opportunities
Cross-Border Demand: GBA integration and dual-currency policies attract clients from Mainland China and beyond.
Climate-Responsive Products: Parametric insurance and tightened underwriting address climate risks.
Digitalization: SMEs’ cyber insurance demand is supported by digital transformation and data privacy laws.
Aging Population: Drives PA&H and life insurance demand.
Challenges
U.S. Reciprocal Tariffs: Potential tariffs could reduce profitability.
Underwriting Profit Decline: 2023 saw a 76.3% drop to $1,027 million, driven by latent medical claims and climate losses.
Economic Sensitivity: Hong Kong’s market is tied to China’s economic trends, including currency depreciation.
Conclusion
Hong Kong’s general insurance market is set for robust growth through 2029, driven by PA&H, property, and liability insurance. Its GBA integration, aging population, and climate challenges create opportunities, though U.S. tariffs pose risks.
Compared to Singapore, China, the UK, the U.S., and Australia, Hong Kong’s market is smaller but benefits from higher growth rates and regional connectivity. Insurers should focus on parametric insurance, cyber coverage, and digitalization to capitalize on demand.
Everbright Actuarial Consulting and Broker Services, specializing in actuarial consulting, risk management, and insurance brokerage, Everbright offers tailored solutions for insurers and clients across PA&H, property, and liability segments. Everbright Actuarial Consulting and Broker Services are well-positioned to capitalize on these trends through innovative products and client-focused strategies. Contact us at info@ebactuary.com .