FSDC releases report on reinsurance, marine insurance and captive

The following is issued on behalf of the Financial Services Development Council:

     The Financial Services Development Council (FSDC) today (March 3) released a report entitled "Turning Crisis into Opportunities: Hong Kong as an Insurance Hub with Development Focuses on Reinsurance, Marine and Captive".
     The report noted that, as a major Asian insurance centre, Hong Kong is facing challenges from its Asian competitors in many areas, especially in reinsurance, marine insurance and captives, which are crucial elements for Hong Kong's development as a comprehensive financial centre and as a "super-connector" in the Belt and Road Initiative.
     The Chairman of the FSDC, Mrs Laura M Cha, said, "The recent departure and downsizing of the Hong Kong offices of various international insurance and reinsurance companies highlights the need for Hong Kong to further develop our insurance and reinsurance industry. Further departures are likely in the near future if action is not taken.
     "Hong Kong has all the necessary ingredients to be a leading insurance and reinsurance hub in Asia. Hong Kong insurers and reinsurers have played a critical role in supporting Mainland Chinese companies to transfer and manage their risks, particularly as they expand into new territories, specifically in the regions in the Belt and Road Initiative. Mainland Chinese companies and insurers will be able to take advantage of the benefits in terms of efficiency, best practices, language and ease of doing business by transacting reinsurance in Hong Kong."
     The report recommends a policy review in relation to the China Risk Oriented Solvency System (C-ROSS), potential tax incentive scheme and the insurance regulatory framework in Hong Kong. The report also highlights the need for the Government and industry to work together on business promotion and talent development.
     The full version of the report can be downloaded from the FSDC website: www.fsdc.org.hk.
About the FSDC
     The Hong Kong Special Administrative Region Government established the FSDC in 2013 as a high-level, cross-sectoral advisory body to engage the industry in formulating proposals to promote the further development of Hong Kong’s financial services industry and to map out the strategic direction for development.
     The FSDC has set up five committees, namely Policy Research Committee, Mainland Opportunities Committee, New Business Committee, Market Development Committee and Human Capital Committee.

Ends/Friday, March 3, 2017
Issued at HKT 14:30