BMI's Executive Summary for the Hong Kong Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Hong Kong's IBER is 76.5. Relative to other countries in Asia Pacific, it is an attractive insurance market for foreign insurers. Within the region, Hong Kong stands out for its business-friendly environment. The economic outlook is germane. Government policies are likely to remain constant over the long term.Over the forecast period, we anticipate that non-life premiums will grow by 8% annually in local currency terms and by 8% in US dollar terms. Life premiums are expected to increase by 3% annually in local currency terms and by 3% in US dollar terms. The key drivers of growth in the non-life segment in 2007- 2012 are the anticipated rise in nominal GDP from around US$204.81bn to US$296.54bn and an expected increase in non-life penetration from 1.58% of GDP to 1.60%. The key driver of growth in the life segment is the envisaged rise in population from about 7.2mn to about 7.6mn in 2012. Hong Kong's life penetration is expected to decline over that period.

The competitive landscape is marked by massive competition. Hong Kong remains one of the most crowded and competitive insurance markets in the world. Both markets are dominated by large, wellknown companies.

The main weakness of Hong Kong's insurance sector is the viciousness of the competition. Thus the favourable business conditions which have made Hong Kong such an attractive place to invest have led to it receiving quite low scores in terms of potential returns in the non-life sector.

Contents of the Hong Kong Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Population And Output

Chapter 6 - Country Update

Political Risk China Shows Support For Tsang

Economic Risk Strong Growth Continues

Business Environment QDII Introduction Looms

Table: Non-Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Insurers

Country Overview Hong Kong Life Segment

Table: Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Chapter 7 - Regional Context

Table: Regional Context Premiums

Table: Regional Context Total Premiums

Chapter 8 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 9 - Appendix

Table: Latest Estimates / Actual Figures for 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010

Source: CHAPTER - BMI research

Competitive Landscape for Asia Insurance Reports: Sample of
    Companies Ranked

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A cross-border overview of key players and their insurance market share across Asia. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Asian Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports