Hong Kong Proposal to Let Insurers Invest Capital in Crypto, Infrastructure

Core Insights - The Hong Kong Insurance Authority plans to allow insurance providers to invest in digital assets like cryptocurrency and infrastructure projects, requiring a 100% risk charge to protect policyholder funds [1][6] - The proposal comes as Hong Kong aims to strengthen its financial sector and position itself as a hub for the Asian digital assets market [3] Insurance Market Overview - As of June 2025, there were 158 authorized insurers in Hong Kong, with total gross premiums reported at $81.69 billion in 2024 [2] - The new investment opportunities may attract significant participation from major insurers, such as AIA, which is the seventh largest insurance firm by global market cap [6] Digital Economy Initiatives - The proposal aligns with Hong Kong's broader strategy, including the "Fintech 2030" initiative, which emphasizes tokenization and includes over 40 initiatives aimed at enhancing the financial sector [4] - The Securities and Futures Commission is also considering easing restrictions on cryptocurrency trading, which would further integrate local virtual-asset trading platforms with global markets [5]