In this Winter 2023 edition of Regulatory Insurance Update, the Hong Kong Corporate and Commercial Team provide the latest updates relating to the law and regulations, developments, and news in the insurance industry in Hong Kong.
Insurance industry news and developments
25 October 2023
The 2023 Policy Address outlines measures enhancing Hong Kong’s status as an international financial hub and to promote the insurance industry:
Measures relevant to the insurance industry
- Strengthen export credit insurance: Raising the statutory cap on the contingent liability of the Hong Kong Export Credit Insurance Corporation from HK$55 billion to HK$80 billion to enhance its underwriting capacity.
- Align with international standards by implementing the risk-based capital (RBC) regime: Targeted for implementation in 2024.
- Promote the development of high value-added maritime services: The Commissioner for Maritime and Port Development under the Transport and Logistics Bureau will collaborate with the trade to develop Hong Kong’s maritime strengths, in particular, professional services such as maritime law, insurance, ship finance, etc.
Other measures
- Develop “Headquarters Economy”: To attract enterprises from outside Hong Kong to set up headquarters and/or corporate divisions in Hong Kong.
- Attract companies to re-domicile in Hong Kong: To introduce a mechanism to facilitate companies domiciled overseas for re-domiciliation to Hong Kong by legislative amendments.
- Deepen financial co-operation in the GBA: To co-establish the Shenzhen-Hong Kong Financial Co-operation Committee with the Shenzhen authorities in the first half of 2024 to advise on mutual access to the financial markets, co-operation on financial technologies and green finance, and exchange of financial talents.
- Attract and retain talents: To (i) establish a physical office of the Hong Kong Talent Engage; (ii) expand the coverage of universities under the Top Talent Pass Scheme; (iii) relax visa requirements for Vietnamese, Laotian and Nepalese talents for employment, business, training and study in Hong Kong (as applicable); (iv) implement the Capital Investment Entrant Scheme.
- Promote the development of green and sustainable finance in Hong Kong: To launch a proof-of-concept subsidy scheme for green Fintech in the first half of 2024 and provide early-stage funding support for pre-commercialised green Fintech.
IA’s response
Mr. Stephen Yiu, Chairman of the IA, said that the IA strives to promote connectivity in the GBA. He cites the cross-boundary insurance products that facilitate northbound travel for Hong Kong vehicles upon advent of the Unilateral Recognition Policy in July 2023 as an example. A quadripartite platform has been set up for after-sales service among the regulatory authorities in Guangdong, Hong Kong, Macau and Shenzhen to enable all holders of Hong Kong policies residing in Mainland cities of the GBA to enjoy resulting benefits.
The IA is also exploring the use of extended care facilities in the Mainland for retirement support among Hong Kong people.
HKFI’s response
The HKFI appreciates the Government's acceptance of their recommendations to facilitate market expansion and attract more international financial capital to Hong Kong by developing the "Headquarters Economy" and strengthening Hong Kong's significant role within the GBA. It also welcomes the various measures including talent attraction and retention, promotion of the development of green and sustainable finance and promotion of high value-added maritime services, including marine insurance. The HKFI will continue its dedication to collaborating with the Government to reinforce Hong Kong’s role as a global insurance hub and risk management centre.
Related items:
26 October 2023
The IA signed a memorandum of understanding (MoU) with the Independent Commission Against Corruption (ICAC) on 26 October 2023. This provides a framework for handling insurance-related corruption crimes, and enhances collaboration in the referral of cases, joint investigations, exchange of information, and provision of expert assistance.
Mr. Ricky Yau, Deputy Commissioner of the ICAC, notes that the MoU demonstrates the ICAC and the IA’s shared determination to uphold integrity in the industry, boost stakeholders’ confidence and establish a fair, just and transparent environment for business operations.
Mr. Clement Cheung, CEO of the IA, said that the IA will work with the ICAC to safeguard policyholders’ interests.
Apart from investigation and enforcement, the IA also collaborates with the ICAC to promote public education and professional training to prevent corruption at source.
Related items: