HK plans streamlined process for overseas insurers amidst stellar performance

Chairman Yiu attributed the industry’s standing to the RBC regime.

Hong Kong’s total insurance premiums reached US$70.5b (HK$550b), the highest insurance penetration rate globally and the second-highest insurance density. The Insurance Authority (HKIA) attributed this success to its ongoing efforts in supervision.

The market also reinforced its status as one of the leading international financial centres, ranking 16th in the world as an insurance market according to the Sigma Report on World Insurance 2023 by Swiss Re. 

Chairman Stephen Yiu highlighted the implementation of the Risk-based Capital (RBC) regime in July 2024 as a significant milestone. 

The RBC regime aligns Hong Kong with international standards and introduces capital requirements tailored to each insurer’s asset-liability profile, promoting advanced risk management.

Despite geographic and population constraints, Yiu stressed that Hong Kong serves as a strategic platform for corporations operating across the Asia-Pacific region. 

Yiu also noted that whilst three of the nine Internationally Active Insurance Groups (IAIGs) in the region are based in Hong Kong, the city must continue to refine its group-wide supervision (GWS) framework to attract more companies. 

To support this, the HKIA plans to introduce a streamlined process for enterprises incorporated overseas but with a significant local presence to re-domicile in Hong Kong.

Efforts to attract investment have faced challenges, including misconceptions about Hong Kong’s recovery and economic stability. 

Looking ahead, Yiu underscored the importance of addressing emerging challenges such as geopolitical tensions, deglobalisation, climate change, cybersecurity risks, and supply chain disruptions. 

These issues will remain key areas of focus for the HKIA in its ongoing efforts to modernise the insurance sector and maintain Hong Kong's global competitiveness.

(US$1.00 = HK$7.80)