CHINA TAIPING(HK:00966) Mei Ri Jing Ji Xin Wen·2025-11-27 10:25Core Viewpoint - A significant fire incident occurred at Hong Kong's Hong Fuk Court, resulting in major casualties and potential insurance claims implications for the involved parties [1]. Insurance Details - The management committee of Hong Fuk Court decided to continue insurance coverage with China Taiping Insurance (Hong Kong) for the period from January 1, 2025, to December 31, 2026, covering various insurance types including property, public liability, cash, and personal accident insurance [2][4]. - The property insurance covers a total amount of HKD 2 billion, with a premium of HKD 240,240 for two years [4]. - Public liability insurance includes coverage for third-party personal injury up to HKD 10 million per incident, with a premium of approximately HKD 20,020 for two years, and for third-party liability (personal injury and property damage) up to HKD 20 million per incident, with a premium of about HKD 70,070 for two years [4]. Expected Insurance Claims - The public area property insurance is likely to fully compensate due to the fire damage, while the third-party liability insurance may also see full payouts based on the incident's impact [5]. - The compensation standard for personal insurance is HKD 100,000 per deceased individual, which could total over HKD 4 million if there are more than 40 fatalities [5]. - This incident may trigger the largest collective claim in Hong Kong's residential insurance history, with some insurers potentially facing losses due to inadequate risk assessment during underwriting [5]. Market Reaction - Following the fire incident, shares of China Taiping Insurance (HK00966) experienced a decline, dropping over 8% at one point, and closing at HKD 17.9 per share, reflecting a market capitalization of HKD 643.3 billion [8].