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The common law offense of "conspiracy to defraud" continues to serve as a fundamental pillar in Hong Kong’s legal arsenal against sophisticated financial crimes within the insurance sector.
Despite the introduction of various statutory offenses over recent decades, the charge remains a trusted choice for the Independent Commission Against Corruption (ICAC) as it works to dismantle complex fraud rings, according to a think piece from CFN Lawyers.
For the experts at CFN Lawyers, conspiracy to defraud captures the complex networks of professionals and intermediaries that characterise modern insurance scams.
A think piece from the firm emphasizes that conspiracy to defraud has become a cornerstone of Hong Kong's enforcement framework, reflecting its breadth in tackling diverse misconduct.
One of the most common applications of the charge is in the prosecution of bogus insurance claims, particularly given Hong Kong’s status as a leading global insurance hub.
The ICAC has actively collaborated with the sector to issue guides identifying malpractices like the use of bogus documents and diversion of business for bribes.
By utilising this common law charge, prosecutors can target the dishonest agreement itself, which is often easier to prove than a completed theft in complex financial structures.
This legal mechanism is vital for stopping large-scale syndicates before they can successfully siphon off millions in unearned commissions or policyholder funds.
Judges in these cases often emphasise that insurance fraud is not a victimless crime, as the costs are eventually passed on to the insuring public.
The use of conspiracy charges allows the court to impose stiffer penalties that reflect the organised nature of the crime rather than treating it as a series of isolated thefts.
Maintaining market integrity is viewed as essential for preserving the credibility of Hong Kong as a global financial center.
The wider industry perspective is that insurance fraud worldwide remains a massive drain on the economy, making these "conspiracy" charges more vital than ever for market stability.
Unlike Singapore, which utilises specific tip-off and reward schemes to catch insurance fraud, Hong Kong relies more heavily on centralised enforcement through the ICAC. This reliance on common law distinguishes Hong Kong from other jurisdictions that have enacted specific, rigid insurance legislation focusing on remedies for misrepresentation. Regional data shows that the Asia-Pacific region reported a significant increase in fraudulent claims in late 2025, primarily driven by staged accidents and inflated submissions.
Hong Kong has also begun adopting anomaly detection and blockchain technologies to identify fraudulent cases before they escalate into massive losses. This technological shift complements the traditional legal framework, allowing the Hong Kong SFC and ICAC to strengthen cooperation against financial crime.
The ongoing use of "conspiracy to defraud" serves as a powerful deterrent, signaling that the Hong Kong judiciary views insurance scams as serious economic felonies.
It also highlights the growing importance of regulatory compliance for Hong Kong insurers as they look to maintain their status as a global financial hub.