Hong Kong's Insurance Authority (HKIA) advocated for using captive insurance to support Belt and Road projects, particularly those on less coal-intensive energy, during a breakout session at the Belt and Road Summit on 11 September.
The panel, moderated by MM Lee, executive director of the General Business Division of the HKIA, pulled together senior executives in the industry to discuss the use of captives in managing risks derived from overseas energy projects and the emerging opportunities and challenges brought about by energy transition.
Experts also reflected on risk management related to other fast-growing sectors, such as electric vehicles, that would benefit from sustainable development along the Belt and Road.
In addition, the panellists explored Hong Kong's role as an international risk management hub in developing the captive market.
Lee remarks: “The use of captives by mainland enterprises to holistically monitor their overseas project risks and scale up their intra-group risk management capacity is gaining prominence. Being a global risk management centre, Hong Kong is well-positioned to provide comprehensive professional services to facilitate the operations of captive insurers.
“We stand ready to be the preferred captive domicile for state-owned and private corporations in the mainland that are expanding their global footprint or shepherding projects in the Belt and Road countries.”
The panel also discussed fostering a vibrant risk management ecosystem in Hong Kong, the benefits a Hong Kong-based captive insurer could offer its parent company, and how the local insurance sector can support reinsurance demand and meet evolving risk management needs during the low-carbon energy transition.
