13 February 2026
The insurance industry is one that keeps pace with the times, continuously innovates and remains agile in responding to various risks arising from economic development. With the rapid expansion of low-altitude economy in recent years, a new spectrum of risk management needs has emerged in the market. In view of this, the Insurance Authority (IA) has been facilitating the industry to grasp the opportunities in providing vital risk protection for participating enterprises, institutions and the public, and helping to build a safe and robust ecosystem for low-altitude economy in Hong Kong.
The IA plays a dual role in promoting industry participation in the development of low-altitude economy. Firstly, we provide support by clarifying relevant legal requirements for the introduction of suitable insurance products to the market. Under the present law, operations of small unmanned aircraft (SUA) are required to be covered by third-party bodily injury or death liability insurance with a minimum sum assured ranging from $10 million to $20 million, depending on their weight and operational risk level. Currently more than 13 insurance companies offer such products in the market.
Secondly, the IA encourages the industry to strengthen safety awareness among SUA users and operators through product innovation and service enhancements. This includes guiding users and operators to foster a robust risk management culture by applying risk assessments and differentiated underwriting arrangements, like conducting detailed evaluation of SUA operations to determine whether high-risk scenarios (such as flights beyond visual line of sight or in densely populated areas) are involved; and calibrating premium levels to reflect the extent of operator training, regular maintenance records for the devices and flight data management. These measures help establish a solid risk management foundation to support the sustainable development of low-altitude economy.
We also encourage the industry to leverage data collected from the Government’s Low-Altitude Economy Regulatory Sandbox and the upgraded Regulatory Sandbox X to examine SUA operations across different scenarios, enabling more accurate pricing and underwriting and enhancing product competitiveness. In this regard, the Task Force on Low-Altitude Economy related Insurance set up by the Hong Kong Federation of Insurers (HKFI) will look into a number of key issues using the Sandbox data, such as underwriting challenges in complex contexts, claims handling following incidents and cross-jurisdictional issues associated with cross-border operations, informing the development of tailored and innovative risk protection solutions.
As applications within low-altitude economy become increasingly diversified – including the operation of larger and higher-payload unmanned aircraft, drone-enabled logistics, emergency response, medical supply transportation and manned low-altitude transports in the future – the relevant risk landscape will inevitably become more complex. We believe that the insurance industry can play a more significant role through product innovation, cross-border collaboration and talent development, contributing to the establishment of a safe and cost-effective risk management framework, thereby supporting the sustainable development of low-altitude economy.
MM Lee
Executive Director, General Business, Insurance Authority
13 February 2026