The Insurance Authority (IA) has identified approximately 1,800 property and casualty insurance policies and another 10,000 life and health policies connected to the deadly Wang Fuk Court fire, as the regulator ramps up efforts to expedite claims processing for victims of Hong Kong’s worst fire disaster in more than 70 years.
Speaking on the sidelines of the Asian Insurance Forum 2025 on Monday, IA CEO Clement Cheung said the P&C policies are spread across roughly 35 insurers, with the vast majority falling into four categories.
“Around 80% of the coverage falls into four main categories, as you’d probably expect. They are home insurance, personal accident insurance, medical insurance, and domestic helper insurance,” Cheung said.
Another 35 life insurance companies, including AIA and Manulife, are responsible for the 10,000 life, medical and annuity policies owned by residents of Wang Fuk Court.
The total number of nearly 12,000 policies is up from an estimated 8700 reported last week.
The fire broke out on 26 November at the Wang Fuk Court apartment complex in Tai Po District, killing at least 159 people and injuring 79. The blaze quickly spread from the housing complex, engulfing seven of the eight 31-storey towers.
State-owned China Taiping Insurance (HK) held the building insurance policy for Wang Fuk Court, providing HK$2b (US$257m) in coverage for property and fire-related damage, along with public liability cover of HK$20m per incident involving death or property loss.
Cheung moved to reassure the market about the insurer’s financial position. “China Taiping is well-capitalised under the IA’s capital requirements, so the insurer is equipped to handle the payouts,” he said.
AM Best’s affirmation of China Taiping Insurance (HK)‘s Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of “a” (Excellent) last week aligns with Cheung’s sentiment.
The rating agency said the fire would not change the insurer’s rating fundamentals over the intermediate term, citing prudent reinsurance arrangements, strong capitalisation, and group support.
Cheung also addressed concerns that premiums could rise as a result of the incident, noting that global reinsurers would absorb a share of the losses and would not be materially affected by a single incident.
Non-life industry losses from the fire are expected to exceed US$200m, with a large share set to flow to reinsurers including Taiping Re, China Re, and Qianhai Re. S&P has estimated that the combined ratio for Hong Kong’s P&C sector will rise to 97-98% for 2025.
Claims volumes still shifting, regulator says figures can wait
In response to the tragedy, the IA has established a dedicated task force to coordinate the insurance industry’s efforts. The regulator has now moved into an active outreach phase. Cheung said that beginning last Friday, the IA started contacting policyholders directly to offer assistance and facilitate claims submissions.
“Our goal is twofold. First, if they need any assistance, we want to be there to help; and second, if they have a claim to file, we can proactively work with insurers through their agents to submit it on their behalf—and hopefully speed up the whole process,” he said.
Cheung declined to provide specific figures on claims volumes or compassionate payments distributed to date, citing the rapidly evolving situation.
“Given that the number of claims related to the fire, the distribution of compassionate payments, and the number of people we’re in contact with are all still changing rapidly—and we don’t think we’ve hit the peak yet—we’ll hold off on releasing specific figures until things have stabilised,” he said.
The IA’s Chairman Stephen Yiu, also speaking at the forum, emphasised the gravity of the regulator’s response.
“This is a top priority for the Insurance Authority, so we’re actively coordinating with the industry and the Hong Kong Federation of Insurers (HKFI),” Yiu said. “I’d also like to thank the HKFI, the industry, the intermediaries, and all the organisations involved for moving quickly to get things done.”
