Assessment of Insurance Companies' Competitiveness in Hong Kong

The issue of competitiveness of Hong Kong financial organizations have been discussed a lot due to the region’s role as a global financial center. Hong Kong insurance companies have always been an essential part of the financial system and the economy, as they act as tool of individuals and legal entities to manage their risks. Moreover, the industry accounted approximately for 10 per cent of region’s GDP. This study aims to analyze which indicators can be used to assess the competitiveness and solvency of companies, which operates in Hong Kong. For the sake of determining the factors of greater importance for companies’ solvency, multimethod research is conducted. First, we look at different approaches for analyzing insurance companies’ activity and make a comparison to choose one. Then we use statistical and econometrical methods to prove whether the chosen method and indicators are appropriate for assessing Hong Kong insurers. Finally, we use the results to determine the factors of the competitiveness of the insurance companies.