Asset Losses from Sea Level Rise to Outpace Typhoon Damage: HKU Reports

The Hong Kong Economic Policy Green Paper 2025 from the HKU Business School emphasized the urgent need to address climate risks with specific policy actions, such as the growth of the market for climate catastrophe insurance and reinsurance.

Sea level rise may cause more asset losses than typhoons, especially in high carbon-emission paths, according to the article "Transform Climate Risks to Development Opportunities — Implications for Hong Kong's Economic Development in an Era of Climate Change."

Severe typhoons and rising sea levels, which pose serious dangers to public housing and vital infrastructure, are two growing challenges for Hong Kong's insurance industry as climate change increases. According to the sources.

This report recommends expanding the market for climate catastrophe insurance in order to improve resilience. In order to increase the insurance industry's ability to handle new risks, HKU Business School also advocates for the integration of climate-adaptation technologies and the support of early-stage climate-tech businesses.