On the 2021 provisional statistics released by the Insurance Authority today, the HKFI would like to highlight the following points of interest:

On claims payout:

• "Total amount of payment made to (life insurance) policy holders in terms of claims and benefits was $307.1 billion (increased by 25.7%)
  Insurance plays a pivotal role in different life stages and offers saving, retirement and protection solutions. The sheer amount of payout and the sizeable increase highlight the important function of insurance during the trying times.

• "...total gross claims payment was $31.4 billion (increased by 2.3%)... Direct general insurance business generated an overall underwriting profit of $1,336 million (decreased by 19.1%) as the net claims incurred ratio rose from 58.9% to 61%"
  Insurance is the backbone supporting all forms of socio-economic activities and giving the insured peace of mind. Albeit general insurers are experiencing a substantial drop in underwriting profit, we still stand by our customers and the insuring public in this taxing and uncertain time. For instance, the continued underwriting loss on motor insurance shows the industry’s unfailing support for this class despite the prolonged loss situation.

On new business:

• "New office premiums for Linked business reached $30.8 billion (increased by 140.7%)"
  Consumers are voting for such product which offers frictionless access to investment market solutions for accumulation potential, with the life protection, beneficiary designation and estate planning capabilities. Albeit the growth, the Hong Kong Investment-linked Assurance Scheme market is still materially under-penetrated and under-developed compared to other mature markets. Regulatory facilitations are necessary to enable our industry to meet the evolving needs and preferences of Hong Kong customers.

• "Non-medical subclass tumbled by 20.8% as outbound travel remained hampered."
  Travel insurance is dormant due to the closed borders / restrictive quarantine restrictions. We hope to see effective containment of the epidemic, relaxation of travel restrictions and resumption of travel in the near future.

• Narrowing profitability on employees’ compensation and property insurance is foreseeable due to economic downturn and softening market trend.