Following the implementation of the Risk-based Capital (“RBC”) regime on 1 July 2024, a number of major developments and enhancements have been made to the relevant regulatory requirements:
The Insurance (Public Disclosure) Rules (Cap. 41W) came into operation on 22 May 2026 to implement the relevant public disclosure requirements. These Rules aim to align with international regulatory benchmarks and enhance market discipline and transparency by providing meaningful and useful information to the general public. Further details of public disclosure requirements can be found from this webpage.
The Insurance (Valuation and Capital) Rules (Cap. 41R) have been enhanced to better reflect the market characteristics and competitiveness of the local insurance industry, support its healthy and sustainable development, and consolidate Hong Kong’s position as an international risk management centre, while maintaining appropriate prudential safeguards. The enhanced Rules will come into effect on 31 December 2026. Several enhancements are:
A consequential amendment has also been made to the Insurance (Maintenance of Assets in Hong Kong) Rules (Cap. 41T) to align with amendments made to the Insurance (Valuation and Capital) Rules (Cap. 41R).
The Companies (Amendment) (No. 2) Ordinance 2025 amends the Companies Ordinance (Cap. 622) to introduce a company re-domiciliation regime that facilitates companies incorporated outside Hong Kong to change their place of domicile to Hong Kong without going through complicated and costly judicial procedures. Specifically, an authorized insurer incorporated outside Hong Kong which has de-registered from its place of incorporation and registered with the Hong Kong Companies Registry to change its domicile to Hong Kong will become a re-domiciled insurer and be supervised as if it is incorporated in Hong Kong under section 2(1) of the Insurance Ordinance (Cap. 41). To ensure that these prospective re-domiciled insurers are able to comply with all prevailing regulatory requirements, they should obtain a letter of no-objection from the Insurance Authority under the new section 3BA(3) of the Insurance Ordinance (Cap. 41) before applying for registration as a re-domiciled company with the Hong Kong Companies Registry.
The company re-domiciliation regime came into operation on 23 May 2025.
The Insurance (Amendment) Ordinance 2023 commenced operation on 1 July 2024. It introduces into the Insurance Ordinance (Cap. 41) the legal framework for the implementation of the RBC regime for the Hong Kong insurance industry, to strengthen the financial soundness of insurance companies and provide close alignment with international standards.
The key features of the Insurance (Amendment) Ordinance 2023 include:-
In addition, several pieces of subsidiary legislation have been introduced for the purpose of implementing the RBC regime with effect from 1 July 2024:-
These rules exempt marine insurers and captive insurers from the requirement to appoint an actuary and prescribe criteria under which certain authorized insurers may also be exempted.
These rules set out requirements regarding the valuation basis, eligibility and composition of capital, capital adequacy requirements, and fund requirements for authorized insurers (except for marine insurers, captive insurers and Lloyd’s).
These rules set out the requirements on information to be submitted to the Insurance Authority by authorized insurers (including Lloyd’s), including financial statements, regulatory returns, auditor’s reports and actuarial reports, as well as the required submission timeframe, frequency and manner for such submissions.
These rules set out: the criteria for giving an exemption from the requirement of maintaining assets in Hong Kong, the amount of assets required to be maintained in Hong Kong for onshore general insurance liabilities, and the relief available for onshore general reinsurance business given to authorized insurers with a sufficiently high financial strength rating.
These rules set out the requirements on the valuation basis, eligibility of capital, capital requirements, and fund requirements for marine insurers and captive insurers.
These rules set out the requirements on the valuation basis, eligibility of capital and capital requirements for Lloyd’s.