Fitch Ratings has said that Hong Kong's non-life insurance industry faces increased competitive pressures amid falling premium volumes.

Stanley Tsai, associate director in Fitch's Asia-Pacific insurance group, said: "Hong Kong's non-life insurance market has seen limited growth opportunities over the past two years."

Earnings pressure is expected to be most pronounced for smaller insurers owing to their lack of economies of scale. "Such insurers will be further at risk should they seek to weaken underwriting discipline in order to promote revenue growth," Tsai added.


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