Hong Kong’s life insurance industry is forecast to grow to HK$575.6 billion (US$73.7 billion) in direct written premiums (DWP) by 2029, according to new data from GlobalData.
This represents a compound annual growth rate (CAGR) of 3.3% over the five-year period from 2024, when the market is projected at HK$489.3 billion (US$62.6 billion).
The 2025 market size is estimated at HK$503.3 billion (US$64.4 billion), reflecting an annual increase of 2.9%. The growth is supported by macroeconomic recovery, Hong Kong’s aging population, and heightened interest in whole life and pension products, particularly among international buyers.
Swarup Kumar Sahoo, senior insurance analyst at GlobalData, noted increasing policy purchases from clients outside Hong Kong.
“Demand for life insurance in Hong Kong has grown from customers in the Middle East, Southeast Asia, and Mainland China. Factors such as better coverage, competitive premiums, and better returns on Hong Kong dollar-denominated policies have increased the demand among customers from the Greater Bay Area (GBA) and the Middle East,” he said.
He added that the depreciation of the Chinese yuan, which has weakened by 16% against the US dollar over the past three years, is also prompting Mainland Chinese customers to look to Hong Kong for more stable currency options.
Life insurers are tailoring offerings for affluent customers in Mainland cities like Shenzhen and Guangzhou.
Hong Kong’s status as a regional centre for wealth management, particularly among high-net-worth individuals, has led to growing interest in insurance products that support estate planning and multi-currency flexibility.
To serve demand from Middle Eastern clients, the Hong Kong Insurance Authority (IA) plans to introduce Arabic-language policy documents by the second quarter of 2025.
Regulatory alignment through Greater Bay Area frameworks, including Insurance Connect, is further facilitating access for Mainland clients and simplifying onboarding processes.
Whole life insurance remains the largest line of business, forecast to account for 65.8% of the life insurance market in 2025 and to grow at a 3.3% CAGR through 2029.
Endowment products are expected to represent 14.8% of the market next year, growing at a faster pace of 5.8% CAGR.
Sahoo noted that Mainland Chinese buyers are drawn to the dual benefits of endowment plans.
“The influence of Mainland Chinese clients, who view endowment policies as valuable financial tools, will continue to drive demand. Insurers are responding to this trend by offering savings plans that combine guaranteed returns with life insurance coverage,” he said.
Other categories, including pensions, annuities, term life, and miscellaneous life products, are projected to make up the remaining 19.4% of the market by 2025.
Hong Kong’s general insurance segment is also expected to grow steadily, with GlobalData forecasting gross written premiums (GWP) to reach HK$85.4 billion (US$10.9 billion) by 2029. This equates to a 5.1% CAGR from a projected HK$69.9 billion (US$8.9 billion) in 2025. The figures do not include inward reinsurance.
The forecast follows the Hong Kong IA’s 2024 provisional report, which noted HK$100.5 billion in total GWP across the general insurance sector, inclusive of reinsurance. Direct premiums for general insurance stood at HK$51.4 billion in the same year.
According to Sahoo, multiple forces are shaping general insurance demand. There is a continued rise in health and personal accident insurance demand among both local residents and visitors. In addition, increasing concern over cyber risks and the impact of unpredictable weather events is driving uptake of related coverage.
