Global
Litigation Insurance in Hong Kong
Outcome-related fee structures for arbitration have changed the funding landscape.
HK
Hong Kong
22.28° N · 114.16° E
- Costs shifting
- Funding and outcome-related fee rules
- Arbitral security
Illustrative. The forum decides which exposures exist at all: its costs rules, its approach to security and how its judgments travel.
How can litigation insurance work in Hong Kong?
Outcome-related fee structures for arbitration have changed the funding landscape. That can shape which exposures dominate — costs shifting, funding and outcome-related fee rules, arbitral security — and therefore which structures may be considered. Availability, admitted status and enforceability of any instrument depend on the forum and on policy terms, and are confirmed matter by matter, subject to underwriting.
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Forum file
Hong Kong
HK
- Costs rule
- Loser pays
- Weight of adverse costs
- High
- What tends to dominate
- Arbitral costs and security
- Relevant cover
Risks to check first
- Costs shifting
- Funding and outcome-related fee rules
- Arbitral security
Structure may follow the procedural rules of the forum, not the parties' nationality. General orientation, not advice; rules have exceptions.
Common risk types
Costs generally follow the event.
Maintenance and champerty continue to restrict third-party funding of litigation, subject to exceptions, while arbitration is treated differently.
Relevant products
Arbitration ATE, award insurance and security for costs cover; capital protection for funders of arbitration.
Key considerations
Third-party funding of arbitration has been permitted since 2019 under a code of practice, and outcome-related fee structures for arbitration were introduced in 2022.
Litigation funding remains more restricted.
Enforcement
Hong Kong enforces New York Convention awards and has a separate arrangement with the Mainland for the mutual enforcement of arbitral awards.
Frequently asked
Is third-party funding allowed in Hong Kong?
For arbitration, yes, under a statutory framework in force since 2019. Funding of court litigation remains restricted by maintenance and champerty, with limited exceptions.
Can Hong Kong lawyers charge outcome-related fees?
For arbitration, outcome-related fee structures have been permitted since 2022, subject to rules. Not generally for litigation.
Does the loser pay costs in Hong Kong?
Generally yes, costs follow the event, subject to the court's or tribunal's discretion.
Are Hong Kong arbitral awards enforceable in mainland China?
Yes, under a separate arrangement between Hong Kong and the Mainland for the mutual enforcement of arbitral awards.
Is ATE insurance used in Hong Kong?
It is used in arbitration, where funding is permitted, and can be offered as security for costs. Its use in court litigation is limited by the funding restrictions.
General information only. This page is not legal, financial, investment or insurance advice. Any insurance is subject to underwriting and to the terms of the policy wording issued.
Where to go next
Relevant products
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