Hong Kong’s financial secretary, John Tsang, recently explained the government’s plans to enhance the popularity of captive insurance business in the city.
Speaking at the Hong Kong federation of insurers 25th anniversary gala dinner, Tsang explained that the government is committed to enhancing Hong Kong’s market quality and policyholder protection.
Tsang said: “We have been working closely with the insurance industry in taking forward a number of key initiatives, including setting up an independent insurance authority and establishing a policyholder protection fund.”
“In addition to modernising our regulatory infrastructure, we must also innovate and explore new business opportunities. In my budget in February this year, I proposed reducing the profits tax of the offshore insurance business of captive insurance companies by 50 percent.”
It is hoped that the combined efforts will attract more enterprises to form captive insurance companies in Hong Kong, that will in turn promote the development of other related professional services including, accounting, actuarial, and legal services.
“With our thriving insurance sector, Hong Kong is an attractive location for captive insurance companies, especially for mainland companies which are interested in managing their risks through innovative means,” added Tsang.
