ComplianceOne Insurance Newsletter – April 2026
The topics discussed in this monthly newsletter are as follows:
Market News
Insurance Authority Hosts the Third Insurance-Linked Securities Conference
IA Statistics Shows 29.7% Growth in Total Gross Premiums for the Year of 2025
Enforcement News
Markets News
1. Insurance Authority Hosts the Third Insurance-Linked Securities Conference
On the 22 of April 2026, the Insurance Authority (“IA”) hosted the third Insurance-linked securities (“ILS”) Conference in Hong Kong, gathering over 120 institutional investors, reinsurers, insurers and professional service providers. The event served as a platform to share market insights, foster industry partnerships, and advance Hong Kong’s strategic positioning as a leading Centre for alternative risk transfer.
**Source: Insurance Authority Press Releases - 22 April 2026
**To understand more about ILS, please refer to the ILS website for further details.
The event featured three panel discussions covering:
i) global and Asian ILS ecosystems;
ii) the strategic role of ILS in asset allocation for institutional portfolios; and
iii) sharing of first-hand experience to clarify common misperceptions.
Source
Speech from Mr. Stephen YIU, Chairman of the IA
Mr. YIU highlighted in his opening remarks that alternative investments are attracting unprecedented attention from institutional investors seeking balanced risk-adjusted returns amid rising global uncertainties, as reflected in the significant capital flows into ILS products globally.
Mr. Yiu further noted Hong Kong’s unique competitive advantages for developing an ILS ecosystem, including its open and sophisticated financial market, it’s distinctive connectivity with Mainland China, and the presence of approximately 3,380 family offices, all of which position Hong Kong as an ideal platform to promote alternative risk transfer tools.
SIGNIFICANCE:
This conference reinforces Hong Kong’s strategic position as a premier ILS hub in Asia. By convening key stakeholders and showcasing ILS as both an innovative alternative risk transfer tool and an attractive investment class, the IA continues to drive market development, attract global capital and strengthen the city’s role as a leading international risk management centre amid evolving global uncertainties.
2. IA Statistics Shows 29.7% Growth in Total Gross Premiums for the Year of 2025
On 24 April 2026, the IA released provisional statistics for the full year 2025. The data reflects continued robust performance across Hong Kong’s insurance sector, with total gross premiums reaching HK$827 billion, representing a 29.7% year-on-year increase.
Long Term Business
New office premiums surged 50.6% to HK$330.9 billion, primarily driven by Non-Linked individual business of HK$312.1 billion (up 49.9%). Within this, participating business rose 55.1% to HK$282.8 billion. Linked individual business increased 65.4% to HK$18.5 billion. Approximately 59,000 Qualifying Deferred Annuity Policies were issued, contributing HK$3.7 billion or 1.1% of total individual business premiums.
In-force long-term business revenue premiums totaled HK$718.5 billion (up 33.7%), with claims and benefits paid amounting to HK$363 billion (up 3%). Total long-term assets grew to $5,398 billion, with net assets $744.3 billion.
General Business
Gross premiums reached HK$108.5 billion (up 8%) and net premiums HK$74.1 billion (up 6.3%). Gross claims paid totalled HK$55.4 billion (up 4.5%). Overall operating profit was HK$11.4 billion (up 39.7%), of which underwriting profit was HK$2.9 billion (down 12.5%).
**For more details, please refer to the summary of the provisional statistics is at Annex.**
SIGNIFICANCE:
The 2025 provisional statistics underscore the resilience and strong momentum of Hong Kong’s insurance industry, with double-digit growth in long-term new business premiums—particularly participating policies—driven by sustained demand for protection and savings products. While general business operating profit improved overall, specific underwriting challenges (such as the Wang Fuk Court fire impact) were noted in certain segments. These figures reinforce Hong Kong’s position as a leading insurance hub in Asia and offer valuable insights for insurers, intermediaries, and policyholders ahead of the final audited results.
3. HKFI Study Reveals Post-Pandemic Private Health Insurance Expenditure Surged by Over 60% in Four Years
On 28 April 2026, the Hong Kong Federation of Insurers (“HKFI”) announced the findings of the study titled “Determinants of Post-Pandemic Medical Inflation: An Analysis of Private Insurance Claims Data in Hong Kong”. Commissioned by the HKFI and conducted by the Centre for Ageing and Healthcare Management Research of The Hong Kong Polytechnic University’s College of Professional and Continuing Education (“PolyU CPCE”), the research analysed over ten million inpatient and outpatient claim records from 2019 to 2023.
The study found that overall medical expenditure in Hong Kong’s private medical insurance market increased by over 60% in four years, representing a double-digit compound annual growth rate. The primary driver was a sharp increase of 68% in the frequency of inpatient claim (especially day procedures), rather than an increase in the unit price of medical services.
Key Inpatient Claim Changes (2019 vs 2023)
Metric | Changes In 4 Years |
Overall Medical Expenditure | Increase of over 60% |
Inpatient Claim Frequency | Increased sharply by 68% in four years. |
Small to Medium Claims (i.e. HK$5,000–15,000) | Number of cases grew by about 80%. |
Large Claims (i.e. over HK$100,000) | Number of cases more than doubled. |
Room and Board Claims | Grew by less than 30%
(Primarily came from day procedures rather than traditional hospital stays.) |
The surge in claim frequency was most evident in digestive system diseases (e.g. gastritis, duodenitis and gastro-colonoscopy procedures) and viral conditions. Outpatient trends showed a shift toward higher-cost services: GP visits fell nearly 20%, while claims for Chinese medicine practitioners, physiotherapists and chiropractors rose 40–70%, with significantly higher average claim amounts.
Policy Design Impact: Group plans recorded average inpatient claims approximately 40% lower than individual plans, and panel-doctor usage reduced costs by over 40%. Voluntary Health Insurance Scheme (VHIS) plans also showed modestly lower claims than non-VHIS individual policies.
Demographic Pressures: Medical expenses rise sharply with age, with the 75+ group incurring the highest average bills. Females claimed more frequently, while males had higher average inpatient costs per claim.
**For more details, please refer to the summary of the Executive Summary of Research Report and the Presentation Deck**
SIGNIFICANCE:
The HKFI-PolyU study highlights a structural shift in Hong Kong’s private health insurance market. Post-pandemic behavioural changes and increased utilisation of day procedures and specialist services have driven sustained double-digit medical inflation. With an ageing population and rising chronic disease prevalence, the findings underscore the urgent need for multi-stakeholder collaboration among individuals, employers, insurers, healthcare providers and the Government to enhance cost control, promote prudent utilisation and ensure the long-term affordability and sustainability of private medical insurance. The research provides evidence-based insights to support policy discussions on medical network utilisation, product design and preventive care strategies.
Prof. Peter YUEN, Dean of PolyU CPCE, stated: “This study clearly indicates that overall health insurance claims increased very substantially after the pandemic. Such an increase, if it continues at the same rate, will raise serious questions about private health insurance affordability for employers and individuals.”
Ms Selina LAU, Chief Executive of the HKFI, said: “The results reveal that the continuous surge in Hong Kong’s medical expense is no longer an issue for the insurance industry alone but a heavy price for society as a whole to pay. We will discuss with the authorities and relevant stakeholders how to address this issue that affects the long-term well-being of Hong Kong.”
Enforcement News
4. Police Arrest 53-Year-Old CEO of Licensed Insurance Broker Company for Alleged Theft of HK$43 Million
On 13 April 2026, a 53-year-old woman surnamed HO (“HO”), the Chief Executive Officer of a licensed insurance broker company (which also operates as a wealth management firm), was arrested by the Hong Kong Police on suspicion of theft. The company is located at 18 Salisbury Road, Tsim Sha Tsui.
**Source: MingPao Article - 14 April 2026**
Case Summary
According to reports, a shareholder discovered in January 2026 that the company’s bank account had insufficient funds, resulting in delayed payment of staff salaries and client commissions. Further investigation revealed that over HK$43 million had been transferred without authorisation from the company’s account to Ms. HO’s personal account. When questioned, Ms. HO admitted to taking the funds. The shareholder immediately reported the matter to the police.
No disciplinary action or announcement has been issued by the IA. The matter remains under active police investigation with no court proceedings reported to date.
SIGNIFICANCE:
This case underscores the critical importance of robust internal controls, segregation of duties and independent oversight within licensed insurance broker companies. As a holder of an IA licence, the firm and its responsible officers are subject to strict fit-and-proper requirements under the Insurance Ordinance. Any proven misconduct of this nature could lead to licence suspension or revocation, in addition to criminal prosecution. The incident serves as a timely reminder to all licensed intermediaries and appointing principals to strengthen financial governance and early-detection mechanisms to protect client monies and maintain public trust in Hong Kong’s insurance intermediary sector.
[End of ComplianceOne Insurance Newsletter – April 2026]
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