The Hong Kong Insurance Authority has introduced a new framework for classifying Domestic Systemically Important Insurers (D-SIIs), setting out a macroprudential approach for identifying insurers whose failure could significantly disrupt Hong Kong’s financial system and therefore should face strengthened supervisory requirements. Under the framework, AIA Group Limited and Prudential Corporation Asia Limited have been designated as D-SIIs. The Insurance Authority will recommend to the Financial Secretary that all D-SIIs be brought within scope of the Financial Institutions (Resolution) Ordinance (Cap. 628) to enable a wider set of tools for resolvability assessments and resolution planning. Both designated groups are Internationally Active Insurance Groups under the Insurance Authority’s group-wide supervision framework. The Insurance Authority will conduct an annual assessment going forward to review D-SII classifications in line with international practices.
Hong Kong Insurance Authority 2025-10-17
Hong Kong Insurance Authority introduces a Domestic Systemically Important Insurer framework and classifies AIA Group and Prudential Corporation Asia as D-SIIs
The Hong Kong Insurance Authority has introduced a framework for classifying Domestic Systemically Important Insurers (D-SIIs), identifying AIA Group Limited and Prudential Corporation Asia Limited as D-SIIs. The framework aims to enhance supervision and recommends including D-SIIs under the Financial Institutions (Resolution) Ordinance for improved resolvability assessments. An annual review of D-SII classifications will align with international practices.