The Hong Kong Export Credit Insurance Corporation (HKECIC) has ruled out any premium increases tied to the ongoing Middle East conflict, with commissioner Terence Chiu arguing that escalating geopolitical risk alone does not justify higher rates, according to a report by The Standard.
Chiu cited a precedent from April last year, when the corporation responded to US tariff volatility by extending coverage discounts rather than loading premiums, a move it presented as deliberate counter-cyclical support for exporters under pressure.
Since the conflict escalated at the start of this month, marine insurers have undertaken repricing measures by increasing additional premiums for vessels transiting high-risk waters. Japan’s three biggest non-life insurers have expanded the sea areas in which shipowners must pay extra premiums for war and terrorism cover; meanwhile, global rates have reportedly risen sharply, by more than tenfold, according to the Hong Kong Insurance Authority.
Advisory board chairperson Agnes Chan noted that the Middle East represents roughly 2.5% of Hong Kong’s total export value, making it a secondary destination rather than a core market. Existing policies covering that corridor will remain active, she said, while the corporation monitors shifting geopolitical conditions to identify where additional support may be needed.
The corporation has been broadening its product suite, most recently introducing what it describes as the market’s first trade credit insurance solution built on alternative data underwriting, a product designed to support cross-border e-commerce activity, the report said.
Separately, in a press release, Chan highlighted that HKECIC’s underwriting footprint now encompasses more than 200 markets globally, with cumulative insured business exceeding HK$2.45 trillion (approx. US$313bn).
As HKECIC marks its 60th anniversary this year, the corporation is coupling anniversary recognition with direct policyholder benefits. From 1 April 2026 through 31 March 2027, both existing and newly onboarded policyholders will be entitled to credits of up to HK$6,000, applied directly against premiums, policy fees, or credit checking charges. No registration is required.
Chiu framed the anniversary as a moment to acknowledge the industry’s demonstrated confidence in the corporation, noting that insured business reached a record high for the second consecutive year.
Meanwhile, Chan pointed to the corporation’s strategic ambitions within the broader national framework, describing HKECIC’s role as a facilitator of outbound trade growth aligned with China’s 15th Five-Year Plan.
The corporation is also finalising the “SME Protect Plus” pilot scheme referenced in this year’s budget, which will offer more comprehensive risk coverage for smaller exporters. Full details are expected in April.
