The Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U, L.N. 65 of 2024) were made by the Insurance Authority under the Insurance Ordinance and came into operation on 1 July 2024.

Key contents:

1. Under Hong Kong’s new risk-based capital (RBC) regime for the insurance industry, a dedicated simplified capital regime is established for marine insurers and captive insurers, under which capital requirements are calculated by a simplified method based on net premiums or the relevant outstanding claims, substantially reducing the compliance complexity for captive insurers.

2. The minimum capital floor for a captive insurer remains unchanged at HK$2 million.

3. In conjunction with the RBC regime, captive insurers are additionally granted a number of regulatory reliefs, including exemption from maintaining assets in Hong Kong, exemption from appointing a certified actuary, and notification only after the appointment of key persons in control functions, reflecting Hong Kong’s captive-friendly regulatory approach.

Official text: https://www.ia.org.hk/en/legislative_framework/overview/files/es22024281865.pdf