The Hong Kong Financial Services and the Treasury Bureau announced the gazettal of three pieces of subsidiary legislation made by the Insurance Authority to implement Pillar 3 public disclosure requirements under the insurance risk-based capital regime and to revise that regime following the Insurance Authority's review. The package introduces mandatory public disclosure for insurers within scope and updates capital and valuation rules, including preferential treatment for certain infrastructure investments connected to the Chinese Mainland and Hong Kong. The new disclosure rules apply to insurers other than those under transitional arrangements, marine insurers, captive insurers and special purpose insurers. They require publication of audited financial statements and a disclosure statement covering corporate governance, financial position, investments, insurance liabilities, financial performance, pricing adequacy for general business where applicable, capital adequacy and risk management. The valuation and capital amendments give preferential capital treatment to eligible infrastructure investments located on the Chinese Mainland or in Hong Kong, or issued or listed in Hong Kong, with additional incentives for Hong Kong dollar infrastructure bonds issued by the Government. They also refine risk capital requirements for natural catastrophe, man-made non-systemic catastrophe and reserve risk, provide relief for certain offshore reinsurance business, allow a matching adjustment for indexed universal life business, update the treatment of crypto assets and specified stablecoins, and refine the countercyclical adjustment. Consequential amendments are also made to the rules on maintenance of assets in Hong Kong. The public disclosure rules commence on publication in the Gazette and apply to financial years commencing on or after January 1, 2025, with disclosures to be posted on the insurer's or its group company's website and archived for public inspection. The risk-based capital amendments will commence on December 31, 2026, and all three instruments will be tabled at the Legislative Council for negative vetting on May 27, 2026.
Financial Services and the Treasury Bureau (Hong Kong)2026-05-22
Hong Kong Financial Services and the Treasury Bureau gazettes Insurance Authority rules on insurer Pillar 3 disclosure and risk based capital enhancements
The Hong Kong Financial Services and the Treasury Bureau has gazetted three pieces of subsidiary legislation made by the Insurance Authority to implement Pillar 3 public disclosure requirements and revise the insurance risk-based capital regime. The measures introduce mandatory public disclosure for in-scope insurers and update valuation and capital rules, including preferential treatment for eligible infrastructure investments linked to the Chinese Mainland and Hong Kong, revised catastrophe and reserve risk charges, relief for certain offshore reinsurance, a matching adjustment for indexed universal life business, updated treatment of crypto assets and specified stablecoins, and refinements to the countercyclical adjustment.