On 27/11, shares of insurer China Taiping Insurance Holdings temporarily dropped 8% due to concerns over the company's compensation for the Wang Fuk Court apartment complex in Hong Kong. Officials reported that the death toll from the apartment complex fire increased to 55, while over 200 people remain missing.
According to meeting minutes from Wang Fuk Court owners, in 12/2024, they approved renewing their insurance with China Taiping Insurance (Hong Kong), a subsidiary of China Taiping Insurance Holdings. The contract runs from 1/1/2025 to 31/12/2026. Under this agreement, the insurer is responsible for paying up to 2 billion HKD (257 million USD) to cover the exterior and public areas of the apartment complex.
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Fire and smoke rise from buildings in the Wang Fuk Court housing complex in Tai Po district, Hong Kong on 26/11. Photo: AFP |
China Taiping Insurance (Hong Kong) also provided insurance for the apartment renovation project by contractor Prestige Construction and Engineering Company. This contract covers "all risks" for the contractor with total compensation of 365 million HKD, along with "worker compensation" up to 200 million HKD per incident for the complex. The contract is effective from 7/2024 to 7/2027.
However, Philip Mak, Chairman of the Hong Kong Federation of Insurers, told Bloomberg that rebuilding public areas and elevator steel cables would almost certainly exceed the insured amount.
The Wang Fuk Court apartment complex is located in Tai Po district, northern Hong Kong. It comprises 2,000 apartments across 8 buildings and is home to over 4,600 residents.
On the afternoon of 26/11, a fire broke out on scaffolding outside Wang Cheong House within the complex. The blaze quickly spread along the bamboo scaffolding system, engulfing 7 buildings and burning for 19 hours. Hong Kong authorities dispatched hundreds of fire engines to combat the inferno.
By the morning of 27/11, Hong Kong police announced the arrest of 3 suspects on charges of manslaughter. These include two construction company directors and a consultant for the burned apartment complex renovation project.
Ha Thu (according to Reuters, Bloomberg)
