Hong Kong

Principal Legislation

Insurance in Hong Kong is regulated by the Insurance Companies Ordinance (Ch. 41), in force since 30 June 1983. The most recent amendment, effective 1 July 2024, introduced a risk-based capital regime and updated rules on solvency, valuation, group supervision, and regulation of foreign insurers.

Supervision

The Insurance Authority (IA) is the independent regulator of Hong Kong’s insurance industry. It was established in 2015 and took over regulatory functions from the Office of the Commissioner of Insurance in 2017. The IA reports to the Financial Services and the Treasury Bureau and oversees insurers, intermediaries, and market conduct.

Admitted/Non-Admitted 

Section 6(1) of the Insurance Companies Ordinance (Ch. 41) specifies that only authorised insurers, Lloyd’s, or an approved underwriter association may carry on insurance business in or from Hong Kong. However, except for mandatory classes, policyholders and intermediaries are still permitted to place insurance business with non-admitted (foreign‑based) insurers operating outside Hong Kong, provided the business is not conducted within the territory.

Compulsory Classes

• Employees’ compensation insurance (workplace injury liability)
• Motor third-party bodily injury insurance
• Third-party bodily injury insurance for certified local vessels and mainland/Macao vessels entering Hong Kong waters
• Civil aviation third-party liability insurance
• Professional indemnity insurance for licensed insurance brokers
• Professional indemnity insurance for trustees of Mandatory Provident Fund schemes
• Fidelity guarantee insurance for licensed securities and futures institutions
• Third-party liability insurance for building owners’ corporations

State Involvement

There are two major state-owned insurance companies operating in Hong Kong.

Tariff Classes

There are no tariff classes in Hong Kong; premiums are generally determined by market forces.

Premium Taxes and Charges

No premium taxes or fire service charges are imposed on insurers or policyholders in Hong Kong.

Policy Language

Insurance policies are typically issued in English and Chinese.

Hong Kong has 157 authorised insurers, including 51 life, 84 non-life, 19 composite, and 3 special purpose insurers. The non-life market is diverse with multinational branches, mainland Chinese firms, local bancassurers, health insurers, monoline credit and mortgage insurers, Lloyd’s syndicates, underwriting agencies, and family-owned insurers. Market shares are fragmented, with the largest insurer holding under 20% of the market.

Hong Kong currently has around 20 professional reinsurers, with most actively writing premiums. In addition, several large multinational insurers also engage in reinsurance activities locally. While Hong Kong reinsurers primarily serve the local market, the territory is increasingly recognized as a reinsurance hub for North Asia. Growing volumes of international inward reinsurance business come from mainland China, Macao, Taiwan, Japan, Korea, and other Asian countries.

The traditional agency system is the main distribution channel for personal lines and small commercial accounts in Hong Kong. Brokers handle most large commercial accounts, with leading firms increasing efficiency by placing small business on a panel underwriting basis or establishing parallel agency companies.

Typhoon is the most serious natural hazard in Hong Kong. The season runs from early June to October, with September typically the most active month. Cyclonic rainfall often causes flooding, with recent storms like Haikui and Wipha bringing record rainfall and widespread disruption.