Rising Sea Levels vs. Typhoons

In a striking revelation, the Hong Kong University (HKU) Business School has underscored a pressing issue facing the city: asset losses from rising sea levels could eventually eclipse those caused by severe typhoons. This alarming insight comes from the school's recently published Hong Kong Economic Policy Green Paper 2025, which emphasizes immediate action against climate risks through innovative policy solutions.

Challenges Faced by Hong Kong's Insurance Sector

As climate change exacerbates weather extremes, Hong Kong’s insurance sector is increasingly threatened by the dual challenges of intensified typhoons and the encroaching tide of sea-level rise. According to one of the key articles in the report, the vulnerabilities of public housing and critical infrastructure are particularly exposed, demanding urgent attention from policymakers and the insurance industry alike.

Need for Climate Catastrophe Insurance

The paper, titled “Transform Climate Risks to Development Opportunities — Implications for Hong Kong's Economic Development in an Era of Climate Change,” warns that under high carbon-emission scenarios, the financial impact from rising waters could render traditional insurance models obsolete. The pressing call for a robust climate catastrophe insurance and reinsurance market could be pivotal in safeguarding the city’s future.

Strategic Recommendations

The report reveals a crucial strategy: by advancing policies that support the establishment of a dedicated climate insurance market, Hong Kong can bolster its resilience against an unpredictable climate crisis. Not only would this move protect assets and enhance community safety, but it could also turn climate vulnerabilities into economic opportunities for sustainable growth.

Call to Action

With the stakes higher than ever, stakeholders across government, industry, and academia must collaborate to implement these recommendations to ensure that Hong Kong is prepared for the challenges of tomorrow. Don’t wait until it's too late—advocating for climate catastrophe insurance might just be the lifeline the city needs!