Hong Kong Insurance Authority classifies AIA, Prudential Asia as domestic systemically important insurers

Hong Kong Insurance Authority has introduced a new framework for the classification of domestic systemically important insurers, and AIA (1299) and Prudential Corporation Asia have been classified as D-SIIs.

The authority said both insurers are Internationally Active Insurance Groups adhering to robust standards under the group-wide supervision framework.

An annual assessment will take place henceforth to review the classification in line with international practices, according to a statement on its website.

From a macroprudential perspective, D-SIIs are entities whose failure will cause significant disruption to the local financial system in Hong Kong and must therefore be subject to strengthened supervisory requirements, it said.

Accordingly, the IA will recommend to the financial secretary that all D-SIIs should be scoped in under the Financial Institutions Ordinance to provide a wider suite of tools for resolvability assessments and resolution planning.

STAFF REPORTER