Insurance Authority Launches New AI Cohort Programme in Hong Kong
The Hong Kong Insurance Authority (IA) has officially launched its AI Cohort Programme, a new initiative to boost artificial intelligence adoption within the insurance sector. The event took place on August 18 at Cyberport, bringing together leaders from insurance companies and technology providers.
Collaboration Between Insurers and Tech Firms
Seven insurers joined as founding members, committing to establish centres of excellence, invest in local AI talent, and share knowledge with industry peers. Technology companies demonstrated AI solutions targeting policy administration, claims processing, and fraud detection.
Stephen Yiu, IA chairman, highlighted the programme’s goal to foster cross-sector collaboration. He emphasized that Hong Kong’s advanced digital infrastructure and supportive policies position the city as a potential AI hub in the region. AI applications are already in use for underwriting, claims handling, customer support, and sales.
“AI adoption is changing the global insurance landscape, with innovative uses emerging in underwriting, claims settlement, fraud detection, customer service, and sales support,” Yiu said.
Balancing Regulation with Industry Growth
The IA plans to maintain a dual focus: ensuring responsible use of AI while allowing insurers room to experiment within a structured framework. This approach aims to regulate AI deployment without stifling innovation.
Consumer Attitudes Toward AI in Insurance
Despite increasing automation investments, consumer trust remains mixed. According to GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which covered over 5,500 respondents across 11 countries, many consumers see clear benefits in AI.
- 74% believe AI can reduce wait times for customer service
- 71% see efficiency improvements
- A similar percentage thinks AI can better identify patterns than humans
Among those who have interacted with insurance chatbots, nearly 75% gave positive feedback. However, concerns about fairness and reliability persist. GlobalData analyst Beatriz Benito noted that many consumers feel AI technology is not yet mature enough for widespread adoption, which affects their confidence.
New Public Disclosure Rules Finalized
Alongside the AI initiative, the IA has finalized the Insurance (Public Disclosure) Rules as part of Hong Kong’s risk-based capital framework under Pillar 3. Following a consultation that attracted 39 submissions, the rules apply to local insurers and Hong Kong branches of overseas insurers. Insurers in run-off are included but may request exemptions in some cases.
The first disclosures are expected in 2026, with an extra two-month transition period after the financial year-end for preparation. Annual reports will include audited financial statements and other essential data. One key disclosure item was renamed from “pricing adequacy” to “underwriting results” to avoid confusion.
The IA will also provide educational resources to help the public interpret the information published under these new rules. The regulations will be submitted to the Legislative Council before coming into effect.
For professionals looking to enhance their understanding of AI applications in insurance, exploring targeted AI courses can be beneficial. Check out Complete AI Training’s courses by job role to find relevant learning paths.
Your membership also unlocks:
