7 December 2022

Hong Kong outlines insurance integration plan

The government of the Hong Kong Special Administrative Region (SAR) has unveiled its development roadmap for the local insurance industry.

Since last year, the country’s Insurance Authority has been aligned with international standards and the SAR government has introduced a 50-percent reduction in the profits tax rate for general reinsurance businesses and selected general insurance operations of direct insurers, selected insurance brokerage companies, as well as captive insurers.

According to China Daily, Hong Kong chief executive John Lee Ka-chiu told delegates at the Asian Insurance Forum 2022 on 5 December that preparations are under way for the integration of the Chinese mainland and Hong Kong insurance markets.

“We are making final preparations to set up insurance after-sales service centers in the strategic locations of Nansha and Qianhai, bolstering support for customer enquiries, premium payments, claims settlement and complaints holding for holders of issuance policies issued in Hong Kong,” he reportedly said.

On the international front, Lee said Hong Kong’s risk-based capital regime, to be implemented in 2024, will bring the insurance sector’s regulatory framework on a par with those of all leading financial centres. The regime will cover quantitative assessment, corporate governance, and disclosure to align capital requirements with the risk profile and asset-liability matching of insurers, he added.