Speech by SFST at Insurtech Insights Asia 2025 (English only)
*************************************************************
Kristoffer (CEO of Insurtech Insights, Mr Kristoffer Lundberg), distinguished guests, industry leaders, ladies and gentlemen,
Welcome again to Hong Kong, and it is a privilege of mine to address all of you today at Insurtech Insights Asia 2025. I extend my heartfelt gratitude to the organisers for convening this gathering of innovators who are redefining the boundaries of insurance through technology. This gathering is far more than an event; it is a powerful catalyst for collaboration, imagination, and the bold ideas that will shape the future of risk management across Asia and beyond.
Hong Kong has long been recognised as one of the world's premier international financial centres. Our strategic position at the heart of Asia, our robust legal system, our deep pool of global talent, and our unwavering commitment to market development have together created a uniquely fertile ecosystem for the insurance sector.
Today, we host 160 authorised insurers incorporated in Hong Kong, the Mainland, and overseas countries. Six of them are indeed among the world's top 10 insurance groups. Last year, total gross premiums surpassed HK$637 billion, while the industry contributed 3.5 per cent to our GDP (Gross Domestic Product). More tellingly, Hong Kong recorded the highest insurance density in Asia and the second highest globally at over US$8,700 per capita, and an insurance penetration rate of 18.2 per cent - the highest in the world. These are not mere statistics or numbers; they are proof of the trust that individuals, families, and enterprises place in Hong Kong as their preferred centre for managing risk.
Yet we are not content to rest on these achievements. Under the National 14th Five-Year Plan, the Central Government has endorsed Hong Kong's development as a risk management hub. We are determined to fulfil our role as the "super-connector" and "super value-adder" - a two-way springboard that propels Mainland enterprises onto the global stage while inviting international players like all of you to seize the vast opportunities of our nation and the region.
Technology - particularly insurtech - is the engine that will accelerate this vision. Artificial intelligence, digital distribution, open ecosystems, and resilient cyber infrastructure are no longer optional enhancements; they are fundamental to building an insurance sector that is smarter, faster, more inclusive, and more responsive to the needs of a new generation.
Earlier this year, our Insurance Authority, whose Chairman and CEO are both here today, completed a survey on AI adoption across our industry. The findings are both encouraging and instructive. Twenty per cent of insurers have already formulated formal AI strategies and are actively implementing solutions. Over half of them are in exploratory or pilot phases, while 40 per cent plan to increase investment over the next two years. Larger insurers are leading deployment, medium-sized firms are formulating strategies, and smaller players are carefully assessing pathways forward. Indeed, generative AI is already transforming customer communication through intelligent chatbots, accelerating information retrieval, and streamlining claims management. Encouragingly, we see a clear shift: from purely internal process optimisation towards powerful customer-facing applications and distribution support.
These developments, however, also highlight challenges that we must tackle collectively: the availability of skilled AI talent, data quality and availability, budget constraints, regulatory compliance, and the integration of new systems with legacy infrastructure. In response, our Insurance Authority is pursuing a balanced, two-pronged strategy that provides regulatory clarity while actively nurturing innovation.
On the regulatory front, we will soon issue updated supervisory guidance on the use of AI, ensuring that innovation is always accompanied by fairness, accountability, transparency, and also robust policyholder protection. Industry consultation on the revised guidance will commence by early next year.
On the development front, I am delighted to highlight the launch in August of the AI Cohort Programme. Seven leading insurers have pledged as core participants, committing to establish an AI Centre of Excellence right here in Hong Kong - a regional hub that will drive innovation, nurture talent through structured capability-building initiatives, and foster knowledge-sharing across the industry and with regulators. The programme provides shared resources, regulatory-compliant testing environments, and matchmaking between insurers and cutting-edge technology providers like all of you. Regular seminars and case-sharing sessions will disseminate best practices and accelerate adoption. Indeed, a core participant will sign a Memorandum of Understanding with Cyberport to leverage its supercomputing resources and AI ecosystem for collaborative proof-of-concept projects in areas such as fraud detection, claims automation, and personalised customer engagement.
This spirit of experimentation is further embodied in our insurtech-enabling initiatives. Since introducing the Fast Track for virtual insurers, the Insurance Authority has authorised four digital insurers - two in life and two in non-life business. These virtual insurers have been growing in terms of in-force policies and revenue premiums, demonstrating that fully digital models can indeed scale rapidly while maintaining the highest standards of consumer protection.
The Insurtech Sandbox has also been a resounding success. As of March this year, 43 applications have been approved - many involving remote video onboarding, intermediary-free digital sales of life products, and streamlined application processes. These controlled experiments allow us to test bold ideas in a safe environment, gather real-world evidence, and refine regulation in step with innovation.
We are equally committed to open ecosystems. The Insurance Authority is working closely with the industry on more than 30 Open API (Application Programming Interfaces) use cases spanning the entire insurance value chain. By fostering interoperability, we are laying the foundation for a truly connected insurance marketplace that benefits consumers and distributors alike.
In an increasingly digital world, cyber resilience is non-negotiable. In January this year, our Insurance Authority introduced the revamped Guideline on Cybersecurity and the Cyber Resilience Assessment Framework (C-RAF). This framework empowers insurers to assess their own risk exposure and control maturity and to develop targeted remediation plans. It represents a mature, forward-looking approach that keeps pace with evolving threats while preserving flexibility for institutions of different sizes and sophistication.
Ladies and gentlemen, the initiatives I just said, including AI guidance and the Cohort Programme, virtual insurers, sandbox, Open API, and cyber resilience, are not just isolated measures. Together, they form a coherent, future-oriented framework that positions Hong Kong as Asia's insurtech capital.
And we are backing this framework with concrete policy support across the broader risk management landscape: the extended Pilot Insurance-linked Securities Grant Scheme, the new risk-based capital regime, the forthcoming review of infrastructure investment capital charges, the newly established commercial marine specialty risk pool, and our continuing efforts to attract captive insurers and international players to our market.
Hong Kong always stands ready. We offer the deepest insurance market in Asia, a regulatory regime that is both rigorous and responsive, a vibrant technology ecosystem, and an unshakeable commitment to innovation with integrity.
Let us seize this moment together. Let us harness insurtech to create an insurance industry that is not only more efficient, but also more inclusive, more sustainable, and more capable of protecting the aspirations of customers across our nation and our region. In recent days, our community has been reminded of the profound importance of this mission through a very tragic fire incident, a heartbreaking event that has touched us all. The swift and compassionate response from our insurance sector - facilitating claims processes with efficiency and empathy - has provided vital support to those affected, underscoring the sector's enduring role as a pillar of societal resilience. We stand in solidarity with the families and communities impacted, drawing strength from our shared commitment to safeguard one another in times of adversity like this. I encourage our industry to continue this noble tradition of service, innovating not just for growth, but to fortify the bonds of trust and security that define a caring society. Thank you very much. I wish Insurtech Insights Asia 2025 every success and very much look forward to the ideas shared by Kristoffer and more insights that will emerge from the discussions today. Thank you.
Ends/Wednesday, December 3, 2025
Issued at HKT 10:59
Issued at HKT 10:59
NNNN