HKU Business calls to advance climate insurance in Hong Kong

Asset losses from sea level rise could surpass those caused by typhoons.

The HKU Business School's Hong Kong Economic Policy Green Paper 2025 highlighted the critical need to address climate risks through targeted policy measures, including the development of the climate catastrophe insurance and reinsurance market. 

As climate change intensifies, Hong Kong's insurance sector faces mounting challenges from severe typhoons and rising sea levels, which pose significant risks to public housing and critical infrastructure, one of the eight articles in the paper said.

The article “Transform Climate Risks to Development Opportunities — Implications for Hong Kong's Economic Development in an Era of Climate Change” revealed that asset losses from sea level rise could surpass those caused by typhoons, particularly under high carbon-emission pathways. 

To enhance resilience, the report advocates for advancing the climate catastrophe insurance market. 

Additionally, HKU Business School calls for the integration of climate-adaptation technologies and the promotion of early-stage climate-tech startups, which could expand the insurance industry's capacity to address emerging risks.