HONG KONG, Nov 27 — Hong Kong’s insurance sector is bracing for record claims of HK$2.6 billion (RM1.37 billion) following the deadly Tai Po fire, which killed 55 people and damaged seven buildings.
According to the South China Morning Post, industry insiders said the blaze would drive a surge in personal and property insurance payments in the coming year.
“Many insurance companies have already taken immediate action, such as setting up hotlines, as well as simplifying and speeding up the claims process to provide additional help to those affected to cope with the tough times,” said Insurance Authority chairman Stephen Yiu Kin-wah.
The Insurance Authority today formed a special task force to ensure insurers accelerate compensation processes for claims related to the fire, which left nearly 280 people missing and 45 hospitalised in serious condition.
Thousands of residents lost their homes after the blaze broke out yesterday in seven of eight buildings under renovation at Wang Fuk Court in the northern New Territories, before firefighters brought it under control this afternoon.
The Hong Kong Federation of Insurers said members were waiving the need for death certificates to process claims and offering grace periods on premium payments.
The federation’s CEO Selina Lau said, “Our member companies are fully equipped to assist victims in their time of need, providing resources and support to help them through this difficult journey towards recovery,” as quoted by SCMP.
The Hong Kong Monetary Authority and the Hong Kong Association of Banks urged banks to adopt flexible measures, including prioritising loan applications and waiving late repayment fees.
HSBC said victims could access services without producing identification cards, passbooks or ATM cards, while HSBC Life pledged to fast track claims. Bank of East Asia extended operating hours at its Tai Po branch to assist affected residents.
State-owned China Taiping Insurance (HK) provided coverage for Wang Fuk Court, according to estate documents dated November 15, 2024.
The policy, renewed until the end of 2026, offered HK$2 billion in property and fire-related coverage, HK$20 million in public liability per incident, and additional contractor and third-party liability coverage.
China Taiping shares fell as much as 8 per cent today before closing 2 per cent lower at HK$17.90. The company did not respond to queries from the Post.
Other insurers are expected to face claims from individual victims holding life, medical and home content policies, with total payouts likely to reach HK$2.6 billion.
“From the scale of the fire, it is likely insurers will see record claims,” said Institute of Securities Dealers permanent honorary president Tom Chan Pak-lam.
“The price of fire insurance-related policies will inevitably rise next year after insurers pay such high compensation,” he added.
The last major property insurance claim in Hong Kong was linked to a fire at the under-construction Kimpton Hotel in February 2023, estimated at HK$200 million to HK$500 million.
