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Insurance Authority to promote Hong Kong as a risk management centre for Belt and Road projects


28 June 2018


The Insurance Authority (IA) today (28 June 2018) hosted a thematic breakout forum at the Belt and Road Summit1  to explore the immense opportunities from the Belt and Road Initiative (BRI), which could strengthen Hong Kong’s role as a risk management centre.

The forum, entitled “Using Hong Kong as a Centre for Risk Management of Belt and Road Projects”, brought together a panel of experts from insurance, reinsurance, insurance broking and captive companies. The panel identified the different risks faced by overseas assets and businesses under the BRI, provided insights into how insurance can help investors manage these risks, and examined ways in which Hong Kong can utilise its strengths to complement national policies and support Mainland enterprises to go regional and global.

“The Hong Kong insurance industry is well positioned to provide professional risk management services and effective insurance coverage for BRI projects,” said Mr Simon Lam, Executive Director of General Business of the IA. “The IA is committed to strengthening Hong Kong’s role as the ideal risk management centre for BRI projects and to encouraging insurance and reinsurance placement in Hong Kong by related stakeholders.”

In the forum, Mr Lam also mentioned that the IA was planning to launch an insurance facilitation platform to connect enterprises engaging in BRI projects and commercial activities to a talent pool of insurance services providers and other related professional services providers. In preparation for setting up such a platform, the IA will meet potential partners and other stakeholders in the coming months to listen to their views and better understand their needs.

In addition, Mr Lam said that the China Banking and Insurance Regulatory Commission (CBIRC) had agreed to provide preferential treatment to Hong Kong reinsurers. Under the Equivalence Assessment Framework Agreement on the Solvency Regulatory Regime between the Mainland and Hong Kong, a lower capital charge will be applied to Mainland insurers if they cede business to qualified reinsurers in Hong Kong. This measure will encourage Mainland insurers to give priority to Hong Kong reinsurers when they consider ceding business offshore. Details will be announced by the CBIRC soon.

Ends

Notes:

1The Belt and Road Summit, co-organised by the Government of the Hong Kong Special Administrative Region and the Hong Kong Trade Development Council, aimed to explore the opportunities in different sectors under the Belt and Road Initiative and featured an investment and business matching session, providing participants from different countries and sectors with opportunities to identify potential partners and exchange business ideas.



The Insurance Authority hosts a thematic forum, in which experts from the insurance industry discuss how investors can manage risks faced by their overseas assets and businesses under the Belt and Road Initiative.