Hong Kong's Insurance Authority (IA) will carry out a review next year to strengthen Hong Kong's position as a global risk management centre, revealed Mr John Lee, the territory's Chief Executive.
In his 2024 Policy Address yesterday to the Legislative Council, Mr Lee outlined several measures planned for the insurance sector.
He said, “Hong Kong has the highest concentration of insurance companies and the highest insurance density in Asia. To further strengthen Hong Kong's position as a global risk management centre, the Insurance Authority will initiate a review next year.
“We will examine capital requirements for infrastructure investment, enriching insurance companies' asset allocation for risk diversification and driving investment in infrastructure such as the Northern Metropolis (planned to be developed into an integrated living and business area in the northern New Territories in Hong Kong.)
“We will also continue to invite Mainland and overseas enterprises, including large state-owned enterprises in the Mainland, to establish captive insurers in Hong Kong.
Marine insurance and talent
Commenting on attracting maritime service enterprises to Hong Kong, Mr Lee said, “We will encourage leading or high-potential marine insurance business operators to establish a presence in our city to broaden the range of marine insurance products.”
In this connection, Hong Kong will develop maritime services talents? Mr Lee said, “We will strengthen collaboration with international marine insurance organisations to promote the training of marine insurance talents, and expand the scope of the Maritime and Aviation Training Fund to cover more green energy courses, marine insurance examinations, and others.”
Export credit
To provide greater export protection for businesses, the statutory maximum indemnity percentage of the Hong Kong Export Credit Insurance Corporation (ECIC) will be increased from 90% to 95%. The ECIC will also provide more free buyer credit checks with extended geographical coverage, and enhance financing support for e-commerce businesses, said Mr Lee.
He added, “We will encourage the China Export & Credit Insurance Corporation to explore setting up businesses in Hong Kong, providing export credit insurance services covering overseas investment with prolonged investment period, offering Mainland enterprises in Hong Kong venturing to overseas markets and foreign-funded companies doing businesses in Mainland market with more comprehensive export credit services.”
For overall financial services, Mr Lee said, “We will strengthen the range of financial services available for Mainland enterprises in Hong Kong wishing to expand overseas, encouraging Mainland financial enterprises to coordinate and manage their overseas business in Hong Kong and facilitating their internationalisation.
He also said that the Hong Kong Monetary Authority is exploring ways to enable Mainland enterprises looking to go global to enjoy the facilitation of cross-boundary CNY settlement and financing through enhanced offshore CNY liquidity, utilising technology, and promoting international collaboration.
Insurance industry's response
The Hong Kong Federation of Insurers (HKFI) says that it welcomes the various measures relevant to the insurance industry announced by the HKSAR Chief Executive in his 2024 Policy Address. "We are delighted to note that some of the Government’s measures are in alignment with our recommendations for bolstering the strengths of the local insurance industry to help reinvigorate Hong Kong’s status as an international insurance hub," a HKFI statement reads.