The insurance sector in Hong Kong experienced a ‘soft’ market in the second quarter of 2024, according to AON’s Global Insurance Market Insights Report. Despite pressures from social and economic inflation, pricing remained competitive as new business opportunities emerged.
Capacity was generally sufficient for most types of risks, though preferred risks were often oversubscribed. Underwriting practices were cautious, with underwriters aiming to differentiate risk quality and offer favorable terms primarily to preferred risks.
Casualty/Liability and Directors and Officers insurance saw flexible underwriting due to strong market competition. Automobile insurance, particularly for electric vehicles, remained moderate with healthy competition fostering a positive market environment.
Casualty/Liability insurance faced downward pressure on pricing from intense competition, although some local and multinational programs saw slight price increases. Directors and Officers insurance also softened due to rising competition and ample market capacity.
Property insurance maintained a competitive edge with abundant capacity and favorable pricing for high-performing risks. Multinational programs, however, faced a more subdued environment, with natural catastrophe risks impacting technical pricing decisions.
