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Hong Kong Is Asia’s Most-Developed Insurance Market – Forbes

Hong Kong is one of Asia’s most developed insurance market. (ANTHONY WALLACE/AFP/Getty Images)

As Asian markets continue to mature, sophisticated risk management tools such as Directors & Officers insurance have seen broad take-up across the region. But it’s only in recent years that claims activity has begun to illustrate the true value of D&O coverage.

In 2016, AIG (where I am head of liabilities & financial lines for Greater China & Australasia) paid out over $13.6 million USD in claims under D&O policies issued by its Asia-Pacific based operations. This represented a 47% increase over 2012 figures. Although it’s slightly lower than the $16 million USD in claims paid in 2015, the trend is evident that increasing claims are set to be the new normal.

D&O claims show long term growth across the region.AIG

D&O claims show long term growth across the region.

And it’s in Hong Kong where this claims growth is most pronounced.

In 2012, the city represented just over one third of Asia D&O claims for AIG. In 2015, it was 73% of claims. This places Hong Kong firmly as the region’s most-developed insurance market, in terms of D&O claims experience.

To be sure, other markets in Asia have seen dramatic increases in claims over the same period. Singapore and Thailand both saw over eight-fold increases in claims paid since 2012; Malaysia saw an over 15-fold increase; and Korea experienced a dramatic 37-fold rise. Still, none of these markets match Hong Kong in terms of volume of claims.

Reasons for the increase

Hong Kong Is Asia’s Most-Developed Insurance Market – Forbes}

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