...Solid Credit Fundamentals: Ongoing business growth, sound operating profitability and solid capitalisation will constantly reinforce the stable credit strength of both the life and non-life insurance market in Hong Kong. Demand from Mainland Visitors: Fitch Ratings expects growth prospects from the individual life insurance sector to remain strong in the short to medium term, in view of the continued influx of visitors from China. Life policies sold to non-Hong Kong residents accounted for about 28% of total individual new business in 1H14. An aging population and rising disposal personal incomes will also steadily underpin the demand for medical and health (M&H) insurance. Weaker Margin from EC: Fitch believes pricing adequacy in the employee compensation (EC) line will remain a key concern in the non-life sector. The EC business has suffered underwriting deficits over the last three years. The agency expects some insurers will continue to underwrite compulsory EC business with an aggressive...
