Hong Kong’s insurance sector faces record claims of HK$2.6 billion from the deadly fire in Tai Po, claiming 55 lives and damaging seven buildings. The surge in insurance payments for personal and property coverage is expected in the coming year. Nearly 280 people are still missing, with 45 in serious condition.

Insurance companies are expediting compensation processes for fire-related claims, providing hotlines and simplifying claims. The Hong Kong Federation of Insurers is waiving requirements for death certificates and offering support to victims. The Hong Kong Monetary Authority and banks are assisting victims with flexible loan applications and waived fees.

China Taiping Insurance (HK) insured Wang Fuk Court, renewing coverage until 2026. The policy covers property and fire-related damages with public liability and contractors’ risk coverage. The insurer’s shares dropped 8% due to the fire. Other insurers may face claims totaling HK$2.6 billion from individual victims.

Insurers are expected to see record claims after the fire, potentially leading to higher fire insurance policy prices. The last major property insurance claim in Hong Kong was related to a fire in 2023 at the Kimpton Hotel. Insurers are preparing for significant payouts and potential policy adjustments based on the current situation.

Read more at Yahoo Finance: Hong Kong insurers liable for payouts of US$334 million related to deadly Tai Po fire