Bowtie is same as all the other major traditional insurance companies in Hong Kong and must comply with the strict regulations of the Insurance Authority regarding solvency. Under the regulations of the Insurance Authority, Bowtie must reserve sufficient reserves to meet claims, so the probability of bankruptcy/ closing down is extremely low.

In addition, the Insurance Authority also requires insurance companies to engage in reinsurance, which is essentially "insurance for insurance company" Bowtie must reinsure itself with reinsurance companies to help pay claims, so Bowtie policyholders need not worry.