Hong Kong’s Insurance Authority (IA) has strengthened its supervision of insurers and intermediaries while advancing new frameworks to boost market resilience and sustainable growth, as outlined in its Annual Report 2024–25.
The regulator now oversees 157 authorised insurers and over 118,000 licensed intermediaries. Over the past year, it implemented the Risk-based Capital (RBC) regime, carried out more inspections, and enforced stricter compliance to safeguard policyholders and ensure the soundness of the insurance sector.
The IA said the RBC framework was a major step in aligning capital requirements with insurers’ risk exposure. Reviews and consultations are ongoing to refine public disclosure and enhance transparency. The IA also proposed tighter regulation of participating policies, introducing potential limits on illustration rates and stronger oversight of commission practices.
Supervision efforts included eight on-site inspections of insurers, reviews of 800 statutory returns, and 25 meetings with international and local regulators. Investigative work also intensified, with 85 cases concluded, 50 disciplinary actions issued, and the IA’s first criminal prosecution of a licensed broker.
Anti-money laundering efforts reached a milestone with a HK$23 million fine imposed after the IA’s largest-ever inspection. The regulator also joined the Independent Commission Against Corruption (ICAC) in tackling unlicensed sales of insurance policies to Mainland Chinese visitors.
Beyond enforcement, the IA continued building Hong Kong’s role as a global risk management hub. It facilitated catastrophe bond issuances worth HK$6.2 billion under the Insurance-linked Securities (ILS) regime since 2021, extended the ILS Grant Scheme to 2028, and supported innovative products such as annuity plans linked to elderly care facilities in the Greater Bay Area.
“We have chosen the theme of ‘Nurturing New Opportunities Amid Global Uncertainties’ that underscores our determination to bolster partnership with the industry in building resilience against adversities and in identifying new sources of growth,” IA chairman Stephen Yiu said.
CEO Clement Cheung added that “financial stability and safety, balanced and sustainable growth as well as fair treatment of customers are priority tasks that will be embedded into our corporate planning process.”
Environmental and technological initiatives featured strongly. The IA contributed to Hong Kong’s Green and Sustainable Finance Cross-Agency Steering Group and launched the Cyber Resilience Assessment Framework to help insurers manage cybersecurity threats.
Public outreach also expanded, with campaigns on critical illness coverage, deferred annuities, and youth financial education. The IA resolved 968 complaints and met its performance goal of closing 80% within six months.
Financially, the IA reported HK$537.8 million in income and HK$544.3 million in operating expenses for 2024–25, resulting in a HK$6.5 million deficit. Staff development remained a focus, with 18,766 training hours completed across its 357-strong workforce.
The full Annual Report 2024-25 is available on the IA’s website.
