The Hong Kong Insurance Authority (HKIA) is actively promoting the insurance sector’s engagement in the city’s rapidly emerging low-altitude economy. The accelerated proliferation of drones and other small unmanned aerial vehicles (UAVs) has introduced new operational risks, creating a pressing demand for specialised insurance solutions. In response, the HKIA is collaborating closely with insurers to ensure a safer and more stable environment for businesses, organisations, and the general public.
Since 13 February, the HKIA has been assisting stakeholders involved in low-altitude operations to identify appropriate insurance products. Under current regulations, operators of small UAVs are required to maintain third-party liability insurance, which covers physical injury or death. Minimum coverage amounts have been determined based on aircraft weight and risk profile, ranging from USD 1.3 million (HK$ 10 million) to USD 2.6 million (HK$ 20 million).
Currently, over 13 insurance companies in Hong Kong offer such tailored products. The HKIA has provided guidance to these insurers on product design and service quality, emphasising measures that enhance safety awareness among operators and end-users. This guidance includes risk assessment protocols, personalised underwriting, and special conditions for flights beyond visual line of sight or over densely populated areas. Premium calculations may also consider factors such as pilot training, maintenance records, and flight data management practices.
Furthermore, insights gained from government initiatives such as the “Low-Altitude Economy Regulatory Sandbox” and the advanced “Regulatory Sandbox X” are helping insurers analyse operational conditions. These insights improve underwriting accuracy, optimise premium setting, and enhance product competitiveness. The Hong Kong Federation of Insurers has established a taskforce to monitor complex risks, post-incident claims, and cross-border exposure, using data derived from these sandbox programmes.
The HKIA has emphasised that the low-altitude economy will continue to expand, encompassing large UAV operations, drone-based logistics, emergency services, medical supply transport, and potentially passenger transport in the future. This expansion will lead to increasingly complex risk profiles. The authority has urged insurance companies to actively contribute to long-term sector growth through product innovation, cross-border cooperation, and workforce development.
Minimum Third-Party Insurance for Small UAVs
| Aircraft Weight & Risk Level | Minimum Insurance (USD) | Minimum Insurance (HK$) |
|---|---|---|
| Low Risk / Light UAV | 1,300,000 | 10,000,000 |
| High Risk / Heavy UAV | 2,600,000 | 20,000,000 |
Through these initiatives, Hong Kong aims to establish its insurance sector as a key driver of the low-altitude economy, supporting safe, sustainable, and resilient growth.