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China Banking and Insurance Regulatory Commission continues preferential treatment to Hong Kong reinsurance industry


22 July 2019


The China Banking and Insurance Regulatory Commission (CBIRC) today (22 July 2019) announced an agreement to continue the preferential treatment to Hong Kong under the “China Risk Oriented Solvency System”, allowing lower capital requirements for Mainland insurers who cede businesses to qualified Hong Kong professional reinsurers.

The CBIRC said the continuation of the preferential treatment has played a positive role in promoting the prosperous development of and achieving mutual benefits for the reinsurance markets in both the Mainland and Hong Kong.

Mr Clement Cheung, Chief Executive Officer of the Insurance Authority, said, "In the past year, the preferential treatment has strengthened the cooperation of the cross-border insurance business and demonstrated that Hong Kong has actively participated and assisted in constructing the infrastructure along the Belt and Road, positioning Hong Kong as a risk management center."

The former China Insurance Regulatory Commission and the former Office of the Commissioner of Insurance signed the Equivalence Assessment Framework Agreement on Solvency Regulatory Regime (Agreement) on 16 May 2017. Last year, the CBIRC, based on the Agreement, granted the preferential treatment to Hong Kong professional reinsurers for one year.

For details of the preferential treatment, please refer to the Notice published by the CBIRC (Chinese version only).

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