The Hong Kong insurance regulatory authority, The Insurance Authority, plans to integrate insurance into urban planning to ensure the city's resilience against climate change.
The Insurance Authority recently hosted a featured event “Co-creating a Climate-Resilient Smart City: The Intersection of Insurance, Scientific Research and Infrastructure”, as part of the Hong Kong Green Week. The event gathered over 200 industry leaders, policymakers, academics and experts to discuss on the proposed move.
In his opening remarks, IA Chairman Mr Stephen Yiu said, “Better-designed infrastructure and smarter risk transfer can work together so that the people building our city, and the families living in it, are genuinely protected, not just insured on paper. Regulators also have a critical role in ensuring insurance remains a source of confidence."
Permanent Secretary for Development (Works) and Keynote speaker Mr Ricky Lau said, “By combining government infrastructure investments that lower physical risks with insurance solutions that encourage resilience, we can build a stronger and more secure city together.”
IA CEO Mr Clement Cheung announced the official launch of the Climate Insurance Lab (CIL), which is designed to empower the industry to embrace climate-related risks and opportunities by developing shared data infrastructure, setting practical regulatory guidance, and establishing the Product Innovation Platform, with a view to positioning Hong Kong’s insurance sector as a key contributor to a climate-resilient, low-carbon future.
A presentation based on the key findings of the Climate Modelling Project, spearheaded by the IA in collaboration with the Hong Kong Federation of Insurers and The Hong Kong University of Science and Technology was also a part of the event. The project utilises high-resolution climate models to assist insurance companies in assessing climate risks spatially, also with potential to enhance underwriting capabilities and drive product innovation.