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China Taiping Insurance is coming under renewed attention after its role as an underwriter on a Hong Kong housing estate was revealed during the city’s worst fire disaster in more than 60 years.
Shares in China Taiping Insurance Holdings Co. slipped sharply on Thursday morning as investors assessed the potential liabilities linked to a construction and inspection contract at Wang Fuk Court in Tai Po – the complex now at the centre of a catastrophic blaze that has killed at least 44 people and left hundreds unaccounted for.
The blaze, which ripped through 4 of 7 blocks, is still burning and evacuations are still ongoing.
China Taiping underwrote third-party liability and employee compensation for building and window repair work at the site. The contract sum of HK$316 million is fully insured, with an additional HK$50 million available for accident claims, as well as a HK$200 million employee-compensation layer. The insurer also holds a separate general property-all-risk policy with a HK$2 billion limit.
The policies are now likely to be tested in one of the city’s most complicated loss events in recent memory. Fires continue to burn in multiple towers more than a day after the initial outbreak, with firefighters still unable to reach the upper floors of several buildings because of heat, debris and heavy smoke.
Authorities have arrested three people on suspicion of manslaughter, citing early indications that the fire spread rapidly due to “foam materials and unsafe scaffolding” used during ongoing maintenance. A major factor under investigation is the extensive bamboo scaffolding that encased parts of the development. Structural engineering experts said the material “acted as a continuous external fuel path.”
Date & time
Fire broke out on 26 November 2025, first reported at about 14:51 HKT.
Location
Residential complex: Wang Fuk Court, in Tai Po District (New Territories, Hong Kong)
Estate composition: 8 high-rise towers, originally built in 1983; the estate comprises roughly 1,984 units / flats.
Human toll (as of latest reporting)
At least 44 people killed, among them a firefighter.
Hundreds missing — official missing count reported at 279.
Dozens seriously injured: reports cite more than 60 affected, including many in critical condition.
Scale of response & evacuation
Emergency escalated to a level-5 (“five-alarm”) fire, the highest possible.
Fire services deployed roughly 128 fire trucks, 57 ambulances, and about 767–800 firefighters.
More than 1,000 residents evacuated; temporary shelters established for displaced persons.
Cause & contributing circumstances (under investigation)
Fire appears to have started on external scaffolding and safety netting encasing part of the estate during renovation work; initial ignition reportedly on scaffolding at one tower.
Rapid vertical spread blamed on presence of flammable scaffolding materials and exterior cladding/components — creating conditions for “unusually fast” flame propagation.
Local authorities have arrested three individuals — two company directors and an engineering consultant — on suspicion of manslaughter in connection with the fire.
Significance
Described as the deadliest fire in Hong Kong in decades.
Occurs amid active renovation works, underlining elevated risk in high-density housing undergoing refurbishment — especially when scaffolding and external works are involved.
Insurance professionals in Hong Kong warn the current coverage is unlikely to match the scale of the emerging losses. Hong Kong Insurance Professionals Federation chairman Philip Mak said both the project-specific cover and the general all-risk policy were seriously underinsured given the size of the estate, which contains roughly 2,000 units. He said rebuilding costs for common areas and elevator infrastructure would be highly likely to exceed insured amounts. While individual residents may be eligible for benefits under the HK$50 million accident portion of the policy, there are serious concerns that the pool will be nowhere near enough for an incident of this magnitude.
Beyond the immediate insurance implications, the disaster has revived concerns about construction oversight in Hong Kong. Police told local media the blaze may have spread because of “foam materials and unsafe scaffolding,” while a union representing bamboo scaffolders said current rules governing safety netting are not absolute requirements. “Even if the Labour Department conducts checks on the nets, they will only review if certain certificates have been obtained by the contractors,” the union’s chairman said on radio, according to earlier reporting. The government has already begun phasing out bamboo scaffolding in public works, though fire risk was not cited at the time.
For China Taiping, the unfolding tragedy arrives as the insurer continues positioning itself as a major state-backed financial player in the region. With a history dating back to 1929 and deep ties to China’s Ministry of Finance, the group has built a diversified portfolio across life, P&C, pensions and asset management. Its Hong Kong-listed arm has long been central to the group’s international profile.
But brokers watching this event say the claims environment, regulatory pressure and public scrutiny surrounding Wang Fuk Court could create prolonged uncertainty for the insurer and the broader market. With residents displaced, the full casualty count still unknown and several towers yet to be fully accessed by emergency crews, adjusters and reinsurers face a complex, large-scale recovery effort.
For now, China Taiping has not made any public comment. As firefighters continue their work and the investigation deepens, the scale of the insurance response is likely to grow – and with it, questions about risk tolerances, project-works cover and the adequacy of liability limits for major residential refurbishments in one of Asia’s most densely populated cities.