To incentivize the establishment of captive insurers in Hong Kong, regulatory facilitations are offered to captive insurers including simplified capital requirements, exemption from appointing certifying actuary and exemption from the requirement for maintaining assets in Hong Kong to match local liabilities. For highlights of the regulatory facilitations, please click here.
To further promote captives in Hong Kong, there is also a 50% concession in the profits tax rate on insurance business of offshore risks from the year of assessment 2013-14 onwards. Commencing from the year of assessment 2018-19, these profits tax concessions are extended to cover profits of captive insurers arising from onshore risks.
The Insurance (Amendment) Ordinance 2020 came into operation on 29 March 2021. It amended the Insurance Ordinance (Cap. 41) to expand the scope of insurable risks of captive insurers set up in Hong Kong and maintain Hong Kong's competitiveness as an international insurance hub and risk management center.