Think tank releases plan to strengthen Hong Kong as an insurance hub

The Hong Kong Federation of Insurers (HKFI) think tank has issued a set of policy recommendations to the Hong Kong SAR government to boost the capabilities of the local insurance industry and help revitalize Hong Kong’s status as an International Insurance Center (IIC).

This proposal shares the common vision of the Hong Kong Insurance Sector Development Roadmap and relevant industry initiatives in Budget 2023-2024, and attaches great importance to promoting the strategic role of Hong Kong’s insurance sector and enhancing its overall capacity to support the implementation of the national strategy. In addition, the proposal aims to build more sustainable talent pools for Hong Kong’s insurance industry.

“Hong Kong’s insurance sector can make a significant contribution to the national strategy, both as a major source of institutional capital and as a center of excellence in risk management. We hope to underwrite more international risks in Hong Kong, attract global talent and deepen domestic career paths,” said Edward Moncreiffe, Chair of the HKFI think tank. “We stand ready to work with our supportive government to revitalize Hong Kong’s prominence as an IIC with our pragmatic recommendations.”

Based on the collective aspirations of the industry, elicited through a member survey conducted by the HKFI and the think tank’s strategic recommendations, the HKFI submitted the proposal to the Financial Services and the Treasury Bureau and the Insurance Authority in early April, with three key areas recommended, to move the industry forward.

According to the think tank, these are:

“To transform our sector into an institutional investor for infrastructure investments in Greater China and to accelerate the transition to a low-carbon economy with capital allocation on ESG instruments. In this regard, we call on the government to facilitate insurance investments in Infrastructure Debt and Green and Sustainable Finance (GSF) assets under the new Hong Kong Risked-Based Capital Regime.

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“To create more international insurance capacity and capabilities in Hong Kong, where tax incentives and support services should be established to facilitate companies to set up brokerage, insurance and other core business functions in Hong Kong. In the meantime, this approach recommends cultivating a talent education pathway for local citizens in partnership with renowned academic institutions and industry.

“To position Hong Kong as a professional risk management hub by drawing on our risk capacity and expertise and providing capacity to meet the growing insurance needs of the GBA, the Belt and Road and other national strategies.”

Think Tank, Hong Kong Federation of Insurers (HKFI), Police, International Insurance Center (IIC), Insurance, Reinsurance, Captive