The life insurance market in Hong Kong (China SAR) is projected to grow from HKD489.3 billion ($62.6 billion) in 2024 to HKD575.6 billion ($73.7 billion) in 2029, registering a compound annual growth rate (CAGR) of 3.3% in terms of direct written premiums (DWP), according to GlobalData, a leading data and analytics company.
GlobalData’s Hong Kong Life Insurance Report indicates that the Hong Kong life insurance market is estimated to reach HKD503.3 billion ($64.4 billion) in DWP in 2025, reflecting a 2.9% annual growth. Factors supporting this growth include economic recovery, an aging population, and increased demand for whole-life and pension policies from domestic and overseas customers. Life insurers have begun adapting their product offerings to meet the evolving needs of this aging demography.
Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “Demand for life insurance in Hong Kong has grown from customers in the Middle East, Southeast Asia, and Mainland China. Factors such as better coverage, competitive premiums, and better returns on Hong Kong dollar-denominated policies have increased the demand among customers from the Greater Bay Area (GBA) and the Middle East. Such policies also protect Mainland Chinese customers against the depreciation of the Chinese yuan, which has depreciated 16% against the US dollar in the last three years.”
In response to the increasing demand from the Middle East, the Insurance Authority of Hong Kong is expected to publish policy documents in Arabic in Q2 2025. Additionally, life insurers have increasingly benefited from Mainland Chinese customers, particularly the affluent population in cities such as Shenzhen and Guangzhou.
Life insurance is also playing a major role in cross-border wealth management, with Hong Kong serving as a key hub for high-net-worth individuals focused on estate planning. In light of this demand, insurers are creating products that offer multiple currency options. Furthermore, regulatory harmonization under the GBA framework, including initiatives like Insurance Connect, has simplified service expansion and policy processes for Mainland clients.
Whole life insurance, which remains the dominant line of business, is estimated to account for a 65.8% share of the life insurance DWP in 2025 and is projected to grow at a CAGR of 3.3% during 2025–29. Whole life policies are favored as insurers enhance product features to improve protection and inclusivity. The demographic shift is expected to fuel demand for whole life and pension insurance, as Hong Kong is rapidly transitioning to a super-aged society. According to GlobalData, the population aged 65 years and above is expected to reach 20.3% of the total population in 2025.
Endowment insurance, the second-largest line of business, is expected to account for 14.8% of the total life insurance DWP in 2025. This line of business is estimated to grow at a CAGR of 5.8% during 2025–29. The dual benefits of life coverage and higher interest rates compared to traditional savings instruments have made this product popular.
Sahoo adds: “The influence of Mainland Chinese clients, who view endowment policies as valuable financial tools, will continue to drive demand. Insurers are responding to this trend by offering savings plans that combine guaranteed returns with life insurance coverage.”
Other life insurance lines, such as general annuities, pensions, term life, and other life products, are estimated to account for the remaining 19.4% share of the life insurance DWP in 2025.
Sahoo concludes: “The outlook for the life insurance market in Hong Kong remains stable, with growth driven by demographic changes, economic recovery, and evolving product offerings. As the population ages and consumer awareness of financial planning increases, insurers are expected to adapt their strategies to meet the evolving needs of their clientele. The next two to three years will be crucial for the industry as it navigates these changes and capitalizes on emerging opportunities.”
