The Insurance Authority in Hong Kong has introduced a new framework to classify Domestic Systemically Important Insurers ("D-SIIs"), recommending that AIA Group Limited and Prudential Corporation Asia Limited be included under stronger supervisory requirements.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On 17 October 2025, the Insurance Authority ("IA") introduced a new framework for the classification of Domestic Systemically Important Insurers ("D-SIIs"). From a macroprudential perspective, D-SIIs are entities whose failure could cause significant disruption to the local financial system in Hong Kong. To address this, the IA has recommended to the Financial Secretary that all D-SIIs should be subject to strengthened supervisory requirements under the Financial Institutions (Resolution) Ordinance. This measure aims to enhance resolvability assessments and resolution planning, providing a wider suite of tools for such purposes.
The new framework classifies AIA Group Limited and Prudential Corporation Asia Limited as D-SIIs. Both are Internationally Active Insurance Groups adhering to robust standards under the IA's group-wide supervision framework. To ensure ongoing compliance and assessment of risk, an annual review of their classification will now be conducted, aligning with international best practices.
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