17 October 2025
The Insurance Authority (IA) today (17 October 2025) introduced a new framework for the classification of Domestic Systemically Important Insurers (D-SIIs)1.
From a macroprudential perspective, D-SIIs are entities whose failure will cause significant disruption to the local financial system in Hong Kong and must therefore be subject to strengthened supervisory requirements. Accordingly, the IA will recommend to the Financial Secretary that all D-SIIs should be scoped in under the Financial Institutions (Resolution) Ordinance (Cap. 628) to provide a wider suite of tools for resolvability assessments and resolution planning.
AIA Group Limited and Prudential Corporation Asia Limited have been classified as D-SIIs, both of which are Internationally Active Insurance Groups2 adhering to robust standards under the group-wide supervision framework of the IA. An annual assessment will take place henceforth to review the classification in line with international practices.
Ends
Note:
1 D-SIIs are of significant size, market importance and interconnectedness such that their distress or disorderly failure would cause significant disruption to domestic financial system and economic activities.
2 Internationally Active Insurance Groups are insurance groups that are internationally active and exceed certain size threshold. These criteria are set out in the Common Framework for the Supervision of Internationally Active Insurance Groups which was adopted by the International Association of Insurance Supervisors since 14 November 2019.