The Hong Kong Insurance Authority releases consultation summary on enhancing risk-based capital system, final rules expected to come into effect by the end of this year.

On May 8th, the Insurance Authority of Hong Kong issued a consultation summary on the proposed amendments to the Insurance (Valuation and Capital) Rules (Chapter 41R) related to the Risk-Based Capital regime. The proposed amendments aim to maintain adequate prudential safeguards while encouraging insurance companies to support local economic development through infrastructure investments and enhancing Hong Kong's competitiveness as a global risk management hub. The final draft of the amended rules will be submitted to the Legislative Council for a first reading before proceeding to scrutiny, with the goal of taking effect on December 31, 2026. Following a review of the Risk-Based Capital regime, the Insurance Authority of Hong Kong released a draft of the proposed amendments in February 2026 and commenced a public consultation. Respondents generally supported the proposed amendments, with feedback mainly focused on the scope of eligible infrastructure investments and deduction factors. The Insurance Authority has carefully considered the feedback received and made appropriate revisions to the draft amended rules.