As the IA of HK take over the insurance supervision, the CEO of HK Insurance Authority express that the HK IA wish attract more central government' SOE setting up captive in HK to be the risk management tool. He said, as the development of the "Road & Silk Initialtive", more and more SOE goes out. He hope more and more SOE could use the HK financing center to strengthen the HK insurance hub in Asia.

The captive is the insurance company setting up by large enterprises to undertake their own risk. The executive manager Mr. Simon Lim point out that more and more large companies setting up capitve according to its finance strenth and the scale of insurance business. Hk has favorable condition to attract these large enterprises to set up captive. And the IA act positivilly communicating with these companies. The IA also negotiating with CIRC to make the policy to recoganize the solvency policy by each other. Once the policy done, it will attract more reinsurance company come to HK.

Last year's new contracts premium was down by double digit

The IA will post 2017 insurance premium next week. The executive manager Mrs. Xu Meiying reveal that the valid premium is up by double digit while the new contract premium is down by double digit. For the visitor from mainland, she point out that the forth season premium is about similar with the 3rd season. And there are lots of favourite facts in HK, such as the aging trend will lead the increase of insurance and the Greater Bay Area also will bring development opptunity for life insurance.

As regards the policy holder protection scheme, the Executive Director (Policy and Development), Mr Raymond Tam, said that it was hoped that the Legislative Council would be able to introduce legislation this year and that the level of protection for the scheme would be unchanged, with a total protection of $100,000 and a maximum of $1 million thereafter. However, there are fine-tuning areas, such as the establishment of a new insurance company to take over and the suggestion that the assets of the insolvency administration should be used for compensation if no other insurer can find a bankruptcy policy.

The chairman, Mr Moses Cheng, said that the OCI had two major projects this year, one of which was the introduction of an intermediary supervision system in the middle of the year to ensure that the livelihood of the existing practitioners would not be affected;

Source:Ta Kung Pao 2018-03-14