Hong Kong insurance sector to sustain growth

Hong Kong's insurance industry is poised for a sustained period of relative stability, according to international rating agency, Standard & Poor's. Despite the perennial threat of earnings pressure, low interest rates and volatile investment markets, S&P expects the sector to achieve satisfactory growth through to 2005. According to its findings, the ratings agency predicts that the drivers that will characterize the sector's growth are related to the low insurance penetration numbers on the life side and improved pricing and reserving within the non-life sector.