Insurance Authority (IA) hosted a Captive Forum meeting in Beijing last month to promote Hong Kong as a captive domicile.
Insurance Authority Executive Director, Policy and Legislation, Mr Clement Lau, in his opening remarks at the Captive Forum, spoke about Hong Kong’s appeal and advantages as a global risk management centre, bolstered by growing momentum from new captives.
“The ever-increasing complexity of external risks, coupled with the rapid development of new technologies, compels enterprises to adopt a more holistic and autonomous approach to risk management, which captive insurance can effectively support.
“With one of the most open insurance markets in the world, Hong Kong is an ideal domicile for Chinese mainland enterprises to establish captives. The IA will spare no effort in fostering a robust captive ecosystem by advancing facilitative policies, as well as attracting talents and strengthening related professional services,” he said.
Mr Lau said, “The recent shipping crisis triggered by conflicts in the Middle East is a real-life example of how geopolitical risks can rapidly impact supply chains. As such, risk management must move beyond passive responses and shift toward proactive prevention, which requires enterprises to adopt a more holistic, clear and autonomous approach of risk management.”
The forum featured three panel discussions gathering industry experts to share insights on the value proposition of captives in enhancing enterprises’ risk management capabilities, particularly when they venture abroad, risk consolidation towards the set-up of captive insurers and the collaboration between captives and commercial insurance market.
The Forum meeting drew close to 100 participants from enterprises, captive insurers, (re)insurers and professional service providers from mainland China and Hong Kong.
In March this year, Hong Kong attracted its seventh captive insurer when the IA granted approval for CNNC Captive Insurance, set up by the China National Nuclear Corporation.