Hong Kong, with its top talents and freest economy in the world, is
bending on developing itself into another insurance niche, on a par
with any well-known insurance centers worldwide.
Hong Kong's insurance market has been developing every soundly, and
the market is attracting more and more world insurers to run
business here, Hong Kong's Commissioner of Insurance Benjamin Tang
said Friday during a trip to Singapore.
Despite a worldwide economic slowdown, provisional statistics show
that the total gross premiums of the Hong Kong insurance industry
reached 85 billion HK dollars (US$10.8 billion) and sustained a
growth rate of 32 percent last year.
Statistics also indicated strong signs of recovery in the general
business market, with gross premiums of approximately 19.5 billion
HK dollars (US$2.5 billion), increased by about 10 percent over
2000. The revenue premiums of long term business reached about 65.5
billion HK dollars (US$8.4 billion) in 2001.
The remarkable growth was mainly attributable to the individual
life business. In 2001, the number of individual life in-force
policies reached 5 million, covering about 74 percent of Hong
Kong's population.
According to latest figures, there were a total of 202 authorized
insurers operating in Hong Kong. Of them, 139 were general business
insurers, 45 were long term business insurers and the remaining 18
were composite insurance players.
These insurers included 29 professional reinsurers and a few
specialist insurers engaging in captive, mortgage, credit, marine,
alternative risk transfer and title insurance business.
Hong Kong's insurance market has a strong international presence.
Over half of the authorized insurers are incorporated outside Hong
Kong in 25 different countries, with the US companies taking the
lead.
China's accession to the World Trade Organization opens up more
opportunities for Hong Kong insurers since the mainland has a large
insurance market and Hong Kong has many advantages as a gateway to
the mainland, Tang said.
With the ever-increasing purchasing power of the Chinese citizens,
China's total premium income grew to 211 billion RMB (US$25
billion) for 2001, an increase of 32 percent over 2000.
To
keep pace with the market development, foreign insurers and joint
ventures are allowed to enter the Chinese insurance market. After
joining the WTO, China is committed to further widening market
access to foreign players, which enables Hong Kong a bigger role to
play, Tang said.
Tang believed that Hong Kong is well poised to develop into an
important insurance center having regard to its high standard of
insurance supervision, well-developed telecommunications, rule of
law and free flow of information.
Hong Kong's reputation is built on its proven track record, a clear
vision of the direction of economic development, a multitude of
infrastructural advantages, and two distinctive attributes: first,
its is the world's freest economy, and second, it has a supportive
regulatory authority, Tang said.
The SAR government is also making efforts to enhance Hong Kong's
competitive edges and facilitate the development of the insurance
industry, said Tang.
Since the industry's development relies on talents, greater efforts
are made to promote degree-insurance education, Tang said, noting
that information technology will be adopted to ensure healthy
development of the industry.
(Xinhua News
Agency March 17, 2002)