Best’s Market Segment Report: Health and Property Lines of Business Drive Hong Kong’s Non-Life Insurance Growth

HONG KONG--(BUSINESS WIRE)--Hong Kong’s non-life insurance market recorded stable growth in 2025, with gross written premiums (GWP) growing year over year by 8% to HKD 108.5 billion, driven by steady growth in direct business and inward reinsurance activities, according to a new AM Best report.

The Best’s Market Segment Report, “Health and Property Lines Drive Hong Kong’s Non-Life Insurance Growth,” notes that there are 87 authorised pure non-life insurance companies in Hong Kong, as of 31 March 2026, creating tight price competition and margin pressures across the industry, which makes organic growth difficult for some entities. Accident and health (A&H) insurance remains the largest premium contributor, representing 37% of the Hong Kong non-life market. The other two core business segments — property damage and general liability (including employees’ compensation) have held consistent market share in 2024 and 2025.

Despite continued margin pressure from medical inflation, the A&H segment grew by 14.5% in 2025 from the previous year due to strong onshore business demand, an aging population and the city’s role as a regional hub for private medical services and cross-border protection.

“The rapid physical integration of the Greater Bay Area, a major urban and economic cluster in southern China that connects Hong Kong and Macau with nine cities in Guangdong province, has also led to considerable non-local demand,” said Cynthia Ang, senior industry research analyst, AM Best.

The property line of business also showed solid growth as more-frequent catastrophe events have created higher demand for coverage of commercial risks. The expansion of inward reinsurance portfolios was also a factor in the segment’s growth. However, underwriting profit for direct property damage business shrank by 87%, owing largely to huge claims payouts and substantial reserves set aside by insurers following the November 2025 Wang Fuk Court fire.

“A material portion of the gross incurred losses from the Wong Fuk Court fire was transferred to reinsurers, with limited impact on pricing. However, the scale of the event has caused primary insurers and reinsurers to reassess their risk appetite and strategy, leading to stricter underwriting standards, particularly for high-rise renovations and high-risk construction locations,” said Stephanie Mi, senior financial analyst, AM Best.

Other report takeaways include:

• The non-life segment is heavily fragmented, with intense competition and low concentration; no single company holds a market share of more than 10%.
• Favourable prior-year reserve releases contributed to stronger underwriting performance and helped improve the combined ratio for the employees’ compensation insurance segment in 2025.
• Progressive regulatory strategies balance market resilience and industry development by introducing targeted initiatives to streamline compliance and support sustainable growth.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=370475.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2026 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.