A catastrophic fire at Wang Fuk Court — a high‑density residential estate in Tai Po, Hong Kong — has placed China Taiping Insurance Holdings under pressure, as investors react to the possibility of a $257 million payout. On 27 November, the firm’s shares tumbled as much as 8% before partially recovering to finish 1.92% lower, trudging behind the Hang Seng Index.
Wang Fuk Court is no ordinary development: its eight blocks contain around 2,000 flats inhabited by more than 4,600 people — a testament to Hong Kong’s chronic shortage of affordable housing. The fire that raged through the estate killed at least 55 residents and left nearly 300 missing, turning homes into tragedy zones.
Publicly available minutes from the estate’s owners’ association show that they approved an insurance policy with China Taiping Insurance (Hong Kong) in December 2024. That policy — effective from 1 January 2025 to 31 December 2026 — backs the estate for damage to its exterior and communal areas, with a liability ceiling of HK$2 billion, roughly $257 million.
Meanwhile, the same insurer extended coverage last year to a renovation project carried out by contractor Prestige Construction and Engineering Company. The three‑year contract included “all‑risks” protection worth HK$365 million, plus workers’ compensation insurance covering up to HK$200 million per event. On Thursday, authorities confirmed that Prestige was the registered contractor, but the company did not respond to repeated requests for comment.
Industry observers are now warning that this single disaster could have ripple effects across Hong Kong’s general‑insurance market. In 2023, gross premiums for property insurance in the city totalled HK$15 billion (approx. $1.93 billion) — a figure which underscores the vast scale of coverage at stake.
The city’s insurance watchdog, the Hong Kong Insurance Authority, has formed a senior‑management task force to coordinate with insurers on claims and enquiries as the fallout unfolds.
Authorities say firefighters have already extinguished flames in four of the seven affected blocks; the rest were brought under control more than 24 hours after the blaze began. Preliminary police investigations suggest “gross negligence” by the construction firm, citing use of unsafe materials.
In sum: what began as a tragic house fire has snowballed into a potential financial calamity — possibly dragging down an insurer, and threatening stability across Hong Kong’s broader insurance industry.
Key Figures
| Item | Detail |
|---|---|
| Number of apartments affected | 2,000 |
| Approximate residents | 4,600+ |
| Maximum exterior damage liability | HK$2,000,000,000 (~$257,000,000) |
| Contractor “all‑risks” coverage | HK$365,000,000 |
| Employee compensation per event (contractor) | Up to HK$200,000,000 |
| 2023 gross property‑insurance premiums (Hong Kong) | HK$15,000,000,000 (~$1.93 billion) |