'Neutral but strategic': Experts weigh impact of Hong Kong’s insurance capital shift

The 15 Feb update on infrastructure treatment expected to avoid rating shifts.

The proposed amendments to Hong Kong insurers’ capital requirements under the Insurance (Valuation and Capital) Rules are expected to have a neutral impact, according to Fitch Ratings.

The proposed changes, issued in a consultation paper by the Hong Kong Insurance Authority on 11 February 2026, include preferential capital treatment for eligible infrastructure investments, revised treatment of certain stablecoins and crypto assets, recalibration of natural catastrophe risk capital, and adjustments for indexed universal life insurance products.

Fitch noted that the proposed amendments could ease the capital burden for some insurers.

The agency added that the impact on Fitch-rated insurers is likely to be neutral, as capital scores under Fitch’s PRISM Global model remain the primary factor in its assessment of insurers’ capital adequacy.

Fitch also said that insurers may adjust their strategies, including investment allocation, business mix, and risk management practices, in response to the proposed capital calculation changes under the RBC regime.

The Hong Kong Insurance Authority’s consultation follows a review of the RBC framework, which was introduced in July 2024, and proposes changes to several technical areas affecting solvency calculations.