By Roxanne Libatique
The Hong Kong Insurance Authority (IA) has published the outcomes of its consultation on draft Insurance (Public Disclosure) Rules.
The report details the specific requirements for insurers to disclose information to the public under Pillar 3 of the risk-based capital regime.
The rules clarify the scope of insurers covered, the types of information to be disclosed, and the timelines and methods for disclosure.
The consultation draft, issued in March 2025, received 39 submissions from industry participants and professional groups.
While the majority supported the proposals, some raised concerns about the inclusion of Hong Kong branches of foreign insurers and insurers in run-off.
In response, the IA confirmed that the rules will apply to both local insurers and foreign insurer branches operating in Hong Kong to maintain consistent transparency for policyholders.
Additionally, insurers in run-off are included but may seek exemptions based on individual circumstances.
The timing for disclosures remains targeted for 2026, with a transitional period allowing insurers two extra months beyond the financial year-end to prepare disclosures.
Annual disclosure will include audited financial statements alongside other relevant information.
One disclosure item previously termed “pricing adequacy” has been renamed “underwriting results” to better reflect its content and avoid misinterpretation.
The IA also plans to enhance public understanding through education initiatives linked to the disclosures.
The finalised rules will be submitted to the Legislative Council for review before enforcement.
The IA also released preliminary insurance market data for the first quarter of 2025 (Q1 2025), revealing total gross premiums of HK$220.3 billion.
Long-term insurance new office premiums, excluding retirement schemes, rose by 43.1% year-over-year to HK$93.4 billion.
The non-linked individual business was the predominant segment, contributing HK$90.1 billion, primarily through participating policies at HK$81.7 billion.
Linked business premiums increased to HK$3.2 billion.
Qualifying deferred annuity policies (QDAPs) accounted for around 35,000 issued policies and generated HK$2.2 billion in premiums, representing 2.4% of individual premiums.
Revenue premiums from in-force long-term policies grew 31.1% to HK$189.1 billion.
Claims and benefits paid decreased by 7.4% to HK$94.3 billion.
In general insurance, gross premiums reached HK$31.2 billion, with net premiums at HK$20.6 billion and gross claims paid of HK$12.2 billion.
The segment recorded an operating profit of HK$2.7 billion and underwriting profit of HK$0.9 billion.
Direct general insurance business generated HK$17.1 billion in gross premiums and HK$11.3 billion in net premiums, with accident and health, general liability, and marine/aviation/transport insurance leading in premium contributions.
Inward reinsurance premiums stood at HK$14.1 billion, with an underwriting loss of HK$0.2 billion attributed mainly to general liability and motor vehicle lines.