Think tank releases proposals to reinvigorate Hong Kong's status as an IIC

Written by Adam Cadle

18/04/2023

The Hong Kong Federation of Insurers (HKFI) think tank has released its policy recommendations to the HKSAR Government for promoting the capabilities of the local insurance industry to help reinvigorate Hong Kong’s status as an international insurance centre (IIC).

Three key areas have been recommended to help drive the industry forward:

- To accelerate the sector to be an institutional investor in infrastructure investment in Greater China and expedite the transition to a low-carbon economy with capital allocation on ESG instruments. In this connection, we call on the Government to facilitate insurance investment into infrastructure debt and green and sustainable finance (GSF) assets under the incoming Hong Kong risked-based capital regime.

- To create more international insurance capacity and capability in Hong Kong, where fiscal incentives and support services should be put in place to facilitate enterprises setting up broking, underwriting and other core business functions in Hong Kong. Meanwhile, this approach recommends cultivating a talent training pathway for local citizens in partnership with renowned academic institutions and the industry sector.

- To position Hong Kong as a professional risk management centre, drawing on our risk capability and expertise and providing capacity to meet the growing insurable needs of the GBA, the Belt and Road and other national strategies.

Chairman of the HKFI’s think tank, Edward Moncreiffe, said: “The Hong Kong insurance sector can contribute substantially to the national strategy, both as a major source of institutional capital and as a risk management centre of excellence. We hope to bring more international risks to be underwritten in Hong Kong and to attract global talents and deepen domestic career pathways.

“We stand ready to work with our supportive Government to reinvigorate Hong Kong's prominent status as an IIC with our pragmatic recommendations.”

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