Hong Kong playing catch-up with regional rival Singapore – Aon
Hong Kong’s authorities has recognised that it’s lagging behind different international monetary hubs, together with Singapore, Aon’s Asia Market Review 2018 has revealed.
In the previous yr, Hong Kong had a change of presidency and chosen a brand new chief govt, in addition to the inauguration of its new insurance coverage regulator, the Hong Kong Insurance Authority. Such modifications have caused a slew of funding, each in infrastructure and know-how.
According to Aon, so as to increase Hong Kong’s stature as a regional and international monetary hub, the federal government is encouraging funding within the monetary know-how (fintech) and insurance coverage know-how (insurtech) sectors. Various stimulus have been supplied, akin to incentives, tax breaks, regulatory sandboxes, and different types of authorities help.
However, 2017 additionally noticed 5 class eight or above typhoons, and the primary “T10” since 2012. That implies that 2017 was the worst hurricane yr for Hong Kong since 1999. Typhoon Hato is essentially the most notable, closely damaging each Hong Kong and Macau. A big portion of Hato losses will likely be settled within the Hong Kong insurance coverage market, and, coupled with record-breaking disaster losses in North America, Aon predicted that “major international insurers in Hong Kong will be increasingly selective and adopt a more cautious underwriting approach as we head into 2018.”
Fortunately, Chinese and Hong Kong insurers will be capable of mood any hardening price setting, the report stated.
In 2017, common insurance coverage charges dropped between zero% and 10%, and the development is ready to proceed in 2018, with charges turning into 5% to 10% decrease. The reverse is true for well being and advantages insurance coverage, as charges elevated by zero% to five% in 2017, and are anticipated to rise by as much as 10% in 2018.
With regard to the insurance coverage traces the place Hong Kong enterprise is prone to choose up, Aon recognized administrators and officers (D&O), skilled indemnity (PI) and cyber insurance coverage.
“In 2018, we expect to see some areas where clients will purchase higher liability limits, particularly for [D&O] and [PI] policies, as awareness grows of the increasing cost of litigation, and therefore the need to procure greater limits,” the report stated. “We have seen an increase in enquiries in cyber insurance this year following WannaCry, Petya, and the recent WWPKG attack. We expect more companies will purchase cyber insurance in 2018 to protect their businesses.”
2017 a “good year” for Singapore insurance coverage, says Aon
Hong Kong chief govt stresses want for “robust and transparent” regulation
Singapore and Hong Kong battling for Asian insurance coverage crown