By Roxanne Libatique
The Hong Kong Insurance Authority (IA) has formally introduced its AI Cohort Programme, an initiative designed to accelerate the use of artificial intelligence in the insurance market.
The launch, held on Aug. 18 at Cyberport, brought together industry executives and technology service providers.
Seven insurers signed on as initial participants, pledging to create centres of excellence, invest in local talent, and exchange insights with peers.
Technology firms also showcased AI applications aimed at improving policy administration, claims management, and fraud detection.
IA chairman Stephen Yiu (pictured) said the programme reflects the agency’s intention to promote collaboration across the sector.
“We are committed to driving collaboration across different disciplines, and the AI Cohort is a key initiative aimed at achieving this objective. With advanced digital infrastructure, facilitative government policies, and a dynamic insurance sector, Hong Kong is poised to become the regional AI hub,” he said.
He noted that AI is already being applied in areas ranging from underwriting and claims to customer support and sales.
“Accelerated AI adoption is transforming the global insurance landscape, with innovative applications sprouting in a wide range of areas including policy underwriting, claims settlement, fraud detection, customer service, and sales support,” Yiu said.
The IA described its approach as a balance between regulatory oversight and industry growth.
The programme is intended to ensure that AI tools are deployed responsibly, while also enabling insurers to experiment with new applications under a more structured framework.
Despite growing investment in automation, surveys suggest that consumer trust remains a challenge.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which covered more than 5,500 people in 11 countries, found that most respondents saw practical benefits in AI.
Around 74% believed AI could cut the time to connect with customer service, 71% pointed to efficiency gains, and a similar share felt AI could outperform humans in identifying patterns.
User satisfaction among those who had already used AI was also notable. Of respondents who engaged with insurance chatbots, nearly three-quarters rated the experience positively.
However, concerns remain. GlobalData analyst Beatriz Benito said that many consumers continue to question the fairness and reliability of AI-driven decisions.
“Despite the positive perceptions, insurers face challenges in ensuring consumers adopt AI tools. Many consumers find that the technology is not yet sufficiently developed to be adopted at scale, eroding their trust,” she said.
Alongside the AI initiative, the IA has finalised its Insurance (Public Disclosure) Rules, which form part of Hong Kong’s risk-based capital framework under Pillar 3.
The consultation, launched in March, attracted 39 submissions from insurers and professional groups.
The final rules confirm that both local insurers and Hong Kong branches of overseas firms will be covered.
Insurers in run-off are also included but may apply for exemptions in certain cases.
The first disclosures are due in 2026, with a transition period allowing an additional two months after financial year-end for preparation.
Annual reporting will include audited financial statements and other key data.
One disclosure item previously termed “pricing adequacy” has been revised to “underwriting results” to prevent confusion.
The IA said it will also introduce educational resources to help the public interpret the published information.
The rules will now be submitted to the Legislative Council before coming into force.
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