Hong Kong is embracing digital transformation in the insurance sector and taking steps to address growing challenges brought by climate change, Chief Executive John Lee said on Tuesday.

The CE was speaking at the Asian Insurance Forum, which drew more than 400 professionals in person and 1,800 online participants this year.

Lee said the SAR is committed to supporting insurtech development through various initiatives, including the Insurtech Sandbox and Open API Framework.

"These initiatives allow insurance providers to experiment with new business models, explore digital products and enhance customer experience in ways that were previously unimaginable," he said.

"Hong Kong's fast-evolving insurtech business is helping the industry embrace artificial intelligence, data analytics and blockchain, bringing tangible improvements to businesses as well as consumers."

The CE added that the SAR is "at the forefront" in developing solutions to combat climate change with measures such as insurance-linked securities and catastrophe bonds.

"To date, Hong Kong has issued five catastrophe bonds, raising more than US$700 million for protection against typhoons, earthquakes and other natural disasters. Technological innovation will be a key enabler of insurance industry growth," he said.

Hong Kong is home to about 160 authorised insurers, including six of the world's top 10 insurance firms, Lee added.