The Monetary Authority of Macao has coordinated with the insurance sector to enhance the 2026 catastrophe property insurance scheme for small and medium-sized enterprises by adding typhoon parametric cover alongside the existing assessed-loss indemnity, while the related premium support plan funded by the Industrial and Commercial Development Fund now provides higher subsidies. The changes, presented jointly with the Economic and Technological Development Bureau, are designed to help firms absorb losses from business interruption during severe weather. From 5 May 2026 to 31 December 2026, eligible firms can buy one policy per operating establishment through six participating local insurers, with insured amounts of MOP 100,000, MOP 200,000, MOP 300,000 or MOP 500,000. Under the new parametric feature, if the Meteorological and Geophysical Bureau issues tropical cyclone signal No. 10 and keeps it in force for 10 hours or more, the insured can claim 10 percent of the sum insured regardless of whether actual loss is recorded. For each event, only one payout method applies, either assessed-loss indemnity or the typhoon parameter payout, with the higher amount prevailing subject to the sum insured cap. Renewing policyholders continue to receive a 20 percent to 35 percent premium discount. For eligible firms, government support has been increased from 50 percent of the standard annual premium, capped at MOP 30,000, to 70 percent of annual premiums after the no-claim discount is applied in claim-free cases, capped at MOP 35,000. The authority said 114 subsidised policies have been issued so far with aggregate risk coverage of MOP 16.9 million, and five claims linked to Typhoon Ragasa in 2025 were settled for a total of MOP 310,000.
Monetary Authority of Macao 2026-05-05
Monetary Authority of Macao adds typhoon parametric cover and increases premium subsidies for 2026 catastrophe property insurance for small and medium-sized enterprises
The Monetary Authority of Macao and the Economic and Technological Development Bureau have enhanced the 2026 catastrophe property insurance scheme for SMEs by adding typhoon parametric cover and increasing premium subsidies funded by the Industrial and Commercial Development Fund. Eligible firms can buy one policy per establishment from six local insurers with sums insured between MOP 100,000 and MOP 500,000, and receive either assessed-loss indemnity or a parametric payout of 10 percent of the sum insured if tropical cyclone signal No. 10 is in force for at least 10 hours. Government support now covers 70 percent of annual premiums after no-claim discounts, capped at MOP 35,000, with 114 subsidised policies issued to date and five claims paid.