Page 16 - Insurance Times April 2022

International

News

General insurance indus- It declined by 4.8% in 2020 due to pan- insurance penetration, as a percent-
demic-led lockdown and outbound age to GDP, at 1.6% provides ample
try in Hong Kong to cross travel restrictions. With ease in these opportunities for general insurance
$10bn in 2026 restrictions, PA&H line is expected to growth. A gradual economic recovery,
Hong Kong general insurance industry recover from 2022 and grow at a increasing cyber risks and growing
is projected to grow at a compound CAGR of 5.1% during 2021-2026 to commercial real estate activities are
annual growth rate (CAGR) of 6.6% reach HKD21.4bn ($2.7bn) in 2026. expected to support growth of general
insurance over the next five years.”
from HKD57.2bn ($7.4bn) in 2021 to Liability insurance is the second-largest
HKD78.6bn ($10.1bn) in 2026, in terms line with a GWP share of 23.9% in
of gross written premiums (GWP), ac- 2020. It grew by 8.8% in 2020, driven General insurance indus-
cording to GlobalData, a leading data, by growing demand for cyber insurance try in Vietnam to reach
and analytics company. policies due to remote working that
Growth in the Hong Kong general in- increased the risk of cyber-attacks dur- $3.5bn in 2026
surance industry will be supported by ing the pandemic. In addition, in- The general insurance industry in Viet-
creased cases of financial frauds in the nam is projected to grow at a com-
growing demand for liability insurance
as well as strong performance in prop- last few years have led to a rise in the pound annual growth rate (CAGR) of
demand for directors & officers (D&O) 8.5% from VND60.15 trillion ($2.6bn)
erty insurance driven by expansion in
real estate and construction activities insurance. in 2021 to VND90.24 trillion ($3.5bn)
in 2026, in terms of gross written pre-
in the country.” Property insurance, which is the third-
Jeneshree Sahoo, Insurance Analyst, largest general insurance line with a miums (GWP), according to
GlobalData, a leading data, and
comments: “After recovering by 6.1% share of 18.7%, grew by 13.2% in 2020
driven by increased real estate and analytics company.
in 2021, the Hong Kong GDP growth is
expected to slow down to 1.5% in 2022 construction activities in the country. The growth of the Vietnamese general
insurance industry will be supported by
due to the resurgence in the number Financial lines insurance, which ac-
strong economic recovery, increased
of COVID-19 cases. Despite these chal- counted for 8.3% share of in 2020, is
frequency of natural disasters, and
lenges, the general insurance industry the fastest growing segment. It grew
is forecasted to grow by 5.7% in 2022, by 60.7% in 2020 due to an increase in growing compulsory insurance classes.
driven by a strong performance from premium prices following the upward Md Shabbir Ansari, Senior Insurance
liability, property, and financial lines adjustment of property values defined Analyst, comments: “Vietnam’s
insurance.” under the Mortgage Insurance Pro- economy is expected to grow at 7.3%
gram. The remaining 18.3% share con- in 2022, following slowdown in 2020
Personal accident and health (PA&H) is
sists of Motor, and marine, aviation, and 2021, driven by strong govern-
the largest general insurance line in
Hong Kong with a GWP share of 30.8% and transit (MAT) insurance. ment fiscal measures and growing
valued at HKD16.9bn ($2.2bn) in 2020. Sahoo concludes: “Hong Kong’s low manufacturing sector. The economic

16 The Insurance Times, April 2022