(Yicai) June 4 -- Premiums paid by people from China's mainland jumped by almost 63 percent to a five-year high of HKD15.6 billion (USD2 billion) in Hong Kong in the first quarter from a year ago, driven by life insurance demand.

Whole life insurance premiums reached HKD12.1 billion, accounting for 78 percent of the total, according to the latest data released by the Insurance Authority. The average was HKD390,000 (USD49,909) per policy.

Premiums of endowment plans more than doubled to HKD2.3 billion (USD294 million), making up 15 percent of the total. Endowment is a type of life insurance that offers more short-term investment options than permanent life insurance.

People from the mainland bought 52,000 new insurance policies in the special administrative region in the first quarter, up by 52 percent year-over-year. Among the new policies, whole life insurance made up 59 percent of the total, and critical illness insurance had a share of 30 percent. The fastest-growing segment was endowment plans though, nearly tripling to almost 1,800 new policies.

Whole life insurance and endowment offer protection and work as long-term savings and investments, Beijing Business Today reported yesterday, citing Zhang Xuefeng, a financial pundit. Moreover, insurance products usually ensure stable returns, attracting investors. Another reason behind the surge in demand is mainland-based high-net-worth individuals who are capable of paying the high premiums of these types of products, Zhang added.

Across different demographics, insurers in Hong Kong recorded HKD65.1 billion of new premiums in the first quarter, up 39 percent. Thereby, mainland-based clients made up 24 percent of the total.

Editor: Emmi Laine