On 11 February 2026, the Insurance Authority ("IA") launched a public consultation on proposed amendments to the Insurance (Valuation and Capital) Rules (Cap. 41R) to enhance the Risk-based Capital ("RBC") Regime. The changes aim to improve Hong Kong’s competitiveness in risk management and incentivise infrastructure financing while maintaining prudential safeguards.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Proposed Amendments to Insurance (Valuation and Capital) Rules
On 11 February 2026, the Insurance Authority ("IA") initiated a public consultation regarding proposed amendments to the Insurance (Valuation and Capital) Rules (Cap. 41R). These amendments are the result of a thorough review of the Risk-based Capital ("RBC") Regime. The primary objective of these proposed changes is to enhance Hong Kong's global competitiveness as a risk management hub and to promote infrastructure financing that benefits the local economy while maintaining stringent prudential safeguards.
The proposed amendments span several key areas, including:
- Preferential Capital Treatment for Eligible Infrastructure Investments: The amendments aim to incentivize infrastructure investments by providing preferential capital treatment.
- Revision of Required Capital Amounts for General Business: Adjustments are proposed to the capital requirements for general business operations.
- Technical Adjustments for Indexed Universal Life Business, Crypto Assets, and Specified Stablecoins: These areas are also subject to technical modifications to reflect current market conditions and risks.
The consultation paper is accessible on the IA website and the public is invited to submit their comments to the IA by 10 March 2026. Feedback can be submitted via email to
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