Hong Kong:Hong Kong's non-life insurance sector experienced an 8% increase in gross written premiums, reaching HK$108.5 billion in 2025. This growth was primarily fueled by direct business and inward reinsurance activities, as highlighted in a report by the global credit rating agency AM Best.

According to BERNAMA News Agency, the report titled 'Health and Property Lines Drive Hong Kong's Non-Life Insurance Growth' also revealed the presence of 87 authorized non-life insurers in Hong Kong as of March 31, 2026. The competitive market has led to tight price competition and margin pressures, making organic growth challenging for some companies.

The report detailed that accident and health insurance, which constitutes 37% of the market, grew by 14.5%. This growth was driven by strong demand from an ageing population and Hong Kong's status as a regional hub for private medical services, despite the challenges posed by medical inflation.

Additionally, property insurance demand increased due to more frequent catastrophes, though underwriting profits for direct property damage business dropped by 87%. This decline was attributed to claims and reserves following a significant fire at Wang Fuk Court in November 2025. Reinsurers absorbed a substantial portion of the fire-related losses, prompting insurers to enforce stricter underwriting standards, especially for high-rise renovations and high-risk construction sites.

The market remains fragmented, with no insurer holding more than a 10% market share. However, the release of reserves from previous years contributed to improved underwriting results for employees' compensation insurance in 2025. Regulatory efforts to streamline compliance are also aiding the industry's sustainable growth.