Insurance Bureau: No Plans to Raise Premiums Due to Middle East Situation

SighingCashier · 2026-03-12T13:31:09+00:00

Hong Kong Credit Insurance Association Director Zhao Minzhong stated that the organization has not yet received customer reports of problems arising from the Middle East situation, with business operations proceeding normally and continuing to provide coverage for Israeli business. The Middle East market has minimal impact on Hong Kong's export trade. Although insurance premiums have risen, the credit insurance bureau does not plan to increase premiums. He revealed that a SME protection plan will be launched in Q3 this year, and a rewards program will be introduced for the company's 60th anniversary.

SighingCashier

2026-03-12 13:31:09

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Hong Kong Credit Insurance Corporation Director Zhao Minzhong stated that he has not received any reports of issues from clients regarding the Middle East situation. The Credit Insurance Corporation currently has no plans to increase premiums due to this incident. Business operations are normal; for example, coverage involving Israel continues as usual. Future adjustments will depend on the situation; if conditions worsen, coverage may be temporarily suspended, and he does not rule out that possibility.

He mentioned that after the Middle East events, clients reported an overall increase in market premiums, with some high-risk areas even unable to obtain insurance. Even in non-high-risk areas, premiums around the Middle East have risen.

He pointed out that the Middle East market accounts for about 2% of Hong Kong’s total export trade, a small proportion, and similarly a small part of the company’s business. The situation has been recent, and no clients have reported problems. The company’s operations remain normal. If clients want to insure shipments to the Middle East, the company continues to provide coverage. Due to international sanctions, insurance involving Iran has been discontinued, but coverage for Israel continues.

Zhao Minzhong said that the Credit Insurance Corporation has not increased premiums for many years. Instead, it sometimes reduces premiums when risks increase. For example, last year, in response to US tariffs, the company offered discounts on pre-shipment insurance. These discounts are valid until June this year, and the company is actively considering whether to extend them.

The “SME Guarantee Scheme” pilot program mentioned in this year’s Budget is being actively prepared and is expected to launch in the third quarter of this year. He said the program aims to make it easier for SMEs to obtain insurance through more flexible criteria.

Additionally, this year marks the company’s 60th anniversary. It has launched a customer reward program, offering eligible policyholders a rebate of up to HKD 6,000 from April 1 this year to the end of March next year, applicable to both existing and new policyholders.

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