ComplianceOne Insurance Newsletter – January 2026
The topics discussed in this monthly newsletter are as follows:
Market News
HKFI Reports Interest from Insurers in Re-domiciling to Hong Kong
IA Statistics Show 32.5% Growth in Total Gross Premiums in first three quarters of 2025
Enforcement News
Market News
1. HKFI Reports Interest from Insurers in Re-domiciling to Hong Kong
On 15 January 2026, the Hong Kong Federation of Insurers (“HKFI”) indicated that around three insurance companies, primarily those registered in Bermuda, have expressed interest in re-domiciling to Hong Kong under the company re-domiciliation regime introduced in May 2025. This follows successful precedents set by major insurers.
The legislation for implementation of company re-domiciliation regime, passaged on 14 May 2025, and gazetted on 23 May 2025
(See Companies (Amendment (No.2) Bill 2024 – Progress of the bill)
Manulife International Life Insurance (Hong Kong) | Completed its re-domiciliation from Bermuda to Hong Kong in December 2025, becoming the first insurer to do so.
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AXA China Region Insurance Company (Bermuda) Limited | Announced its successful re-domiciliation to Hong Kong on 26 January 2026, effective immediately, and was renamed AXA China Region Insurance Company (Hong Kong) Limited (安盛金融保險（香港）有限公司).
The process aligned with the regime, reinforcing AXA's long-term commitment to the Greater China region. AXA plans to update its Macau branch name in the week starting 2 February 2026.
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SIGNIFICANCE:
The re-domiciliation benefits include streamlined regulatory compliance (e.g., avoiding dual Bermuda and Hong Kong requirements), simplified financial reporting, and enhanced alignment with Hong Kong's stable regulatory environment. The growing interest from approximately three additional insurers, combined with completed re-domiciliations by Manulife and AXA, demonstrates Hong Kong's increasing attractiveness as a domicile for international insurance groups amid global economic shifts.
2. IA Reports High Claims Settlement Progress for Wang Fuk Court Fire Incident (宏福苑火災) with 85% of Claims Processed
On 3 February 2026, the Insurance Authority (“IA”) announced that around 85% of insurance claims arising from the fire at Wang Fuk Court have been successfully settled. The IA has been actively coordinating with insurers and monitoring the claims handling process since the incident to support affected policyholders.
Key statistics:
Total claims processed | 1,032 (representing 85% of all claims), involving nearly HK$510 million in settlements. |
General insurance claims | 1,030 total claims; 863 settled (84%), amounting to approximately HK$450 million. |
Long-term insurance claims | 188 total claims; 169 settled (90%), amounting to approximately HK$60 million. |
The remaining unsettled claims primarily require on-site inspections and detailed damage assessments. The IA continues to follow up closely with the Hong Kong Federation of Insurers to ensure fair and efficient resolution in line with the principle of treating customers fairly.
Mr Clement Cheung, Chief Executive Officer of the IA, stated: “The IA is aware that a majority of claims have been successfully settled based on the principle of treating customers fairly, and the remaining claims call for on-site inspections and damage assessments. We will continue to follow up actively with the Hong Kong Federation of Insurers.”
3. IA Hosts Panel Discussion on Marine Insurance Opportunities as Hong Kong Strengthens Its Maritime Hub Status
On 26 January 2026, the IA organized a panel discussion at the Asian Financial Forum (“AFF”) titled "Charting Future Seas: Hong Kong's Maritime Development Opens New Blue Oceans for the Insurance Industry." The session, held during the AFF, explored how Hong Kong's development as an international maritime hub creates opportunities for marine insurance. The AFF serves as Asia's premier exchange platform, bringing together global leaders from government, finance, and business to discuss the global economy from an Asian perspective.
The discussion was moderated by Mr. LIU Zhongjian, Executive Director (Policy and Legislation) of the IA. He emphasized that marine insurance is an indispensable element supporting Hong Kong's status as an international financial, shipping, and trading center. In the context of a complex and changing global trade landscape, Hong Kong's marine insurance sector needs to adopt a more strategic and forward-looking approach.
Panel experts identified three key elements for promoting sustainable development in marine insurance:
Cultivating talent to ensure a stable and continuous supply of professionals in marine risk management.
Addressing technological innovations in shipping and digitalization of global supply chains to maintain competitiveness.
Enhancing synergies among diverse services within Hong Kong's marine insurance ecosystem.
For more details on the AFF agenda and the IA's panel are available on the Asian Financial Forum website.
SIGNIFICANCE:
This panel underscores the IA's proactive role in positioning Hong Kong as a leading maritime and marine insurance hub amid evolving global trade dynamics. By focusing on talent, technology, and ecosystem collaboration, the initiative aims to unlock new growth avenues for the insurance industry, enhance risk management capabilities in shipping and trade, and align with national strategic priorities. It reflects Hong Kong's commitment to diversifying its financial services beyond traditional sectors and capitalizing on its strategic location to attract international marine insurance business.
4. IA Statistics Show 32.5% Growth in Total Gross Premiums in first three quarters of 2025
On 23 January 2026, the IA published the provisional statistics for the first three quarters of 2025 (January to September 2025). The data reflects robust performance across both long-term and general insurance sectors, with total gross premiums reaching HK$6,370 billion, representing a significant year-on-year increase of 32.5%.
Long Term Business (excluding retirement scheme business):
New office premiums surged 55.9% to HK$2,645 billion, driven primarily by non-linked individual business at HK$2,515 billion (up 55.2%). Within this, participating business rose 60.1% to HK$2,263 billion. Linked individual business increased 75.7% to HK$127 billion. Approximately 50,000 qualifying deferred annuity policies were issued, contributing HK$32 billion (1.2% of individual business total).
In-force long-term business revenue premiums totaled HK$5,541 billion (up 36.6%), with claims and benefits paid amounting to HK$2,794 billion (up 3.4%). Total long-term assets grew to HK$52,841 billion, with net assets at HK$7,317 billion.
General Business:
Gross premiums reached HK$829 billion (up 10.5%), net premiums HK$560 billion (up 8.3%). Claims paid totaled HK$380 billion (down 0.9%). Overall operating profit stood at HK$101 billion (up 50.5%), supported by underwriting profit of HK$35 billion (up 63%). Direct business and reinsurance segments both showed positive growth and profitability trends.
For more details, please refer to the summary of the provisional statistics is at Annex.
SIGNIFICANCE:
These provisional figures demonstrate the resilience and strong momentum of Hong Kong's insurance sector in 2025, with substantial growth in new business premiums and overall premiums. The performance highlights increasing demand for protection-oriented and participating products, reinforcing Hong Kong's position as a leading insurance hub in Asia. The data also provides valuable insights for insurers, intermediaries, and policyholders on market trends ahead of full-year 2025 results. Full details, including annex summaries, are available on the IA website.
Enforcement News
5. Hong Kong Police Arrest Four Suspects in Connection with 22 Suspected Staged Traffic Accidents Involving Insurance Fraud
Hong Kong Police have arrested four individuals (three men and one woman, aged 37 to 69) on suspicion of conspiracy to defraud related to 22 staged or falsified traffic accidents. The arrests occurred in early February 2026 as part of an investigation into a multi-year "crash-for-cash" insurance fraud operation.
(Source: South China Morning Post)
Key details of the Case
Among the arrested are a married couple alleged to be central to the scheme, who reportedly posed variously as drivers, passengers, or pedestrians struck by private cars or taxis over a period of four to five years. Two local doctors were also detained in connection with the case, suspected of involvement in facilitating false claims. A taxi registered to the wife was impounded during the operation.
All four suspects remain in custody while investigations continue. Police have linked these incidents to broader concerns over organized insurance fraud, including exaggerated or fabricated injury claims submitted to insurers for compensation payouts.
The Stage Traffic Accidents Scheme in Hong Kong
This development coincides with a recent surge in reported traffic-related scams, with over 100 suspected cases now under review (including referrals from the insurance industry and public reports). Some involve minor bumps, no collisions, or delayed high-value civil claims, often involving repeated claimants, shared law firms, or medical providers. Authorities, including the HKFI have warned drivers and insurers to remain vigilant and report suspicious patterns promptly.
SIGNIFICANCE:
Staged traffic accidents represent a persistent and evolving threat to Hong Kong’s insurance sector, contributing to inflated motor insurance claims, higher premiums for honest policyholders, and erosion of market trust. This recent crackdown demonstrates proactive law enforcement collaboration to disrupt organized syndicates, which often involve coordinated roles across drivers, medical professionals, and claimants.
Insurers are encouraged to strengthen fraud detection through enhanced verification of claims (e.g., reviewing patterns in injury reports, late filings, or repeat participants), internal controls, and referral of suspicious cases to police. The arrests underscore the financial and reputational risks of such misconduct, reinforcing the need for robust anti-fraud measures amid rising "new-generation" variants of crash-for-cash schemes.
[End of ComplianceOne Insurance Newsletter – January 2026]
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