IA Guideline GL5, the Guideline on Application for Authorization to Carry on Insurance Business in or from Hong Kong, sets out the approval process and application material requirements for the licensing of insurance business.

Principal requirements for applying to establish a captive insurer:

1. The company must be incorporated in Hong Kong and satisfy the minimum paid-up share capital requirement of HK$2 million.

2. A three-year business plan and financial projections must be submitted, explaining the scope of group risks proposed to be underwritten, the estimated premium volume and the reinsurance arrangements.

3. The controlling shareholders, directors and key persons in control functions must pass the IA’s fitness and propriety review.

4. A qualified captive manager must be appointed, or a management team with professional capability must be established in-house, and risk management and compliance systems commensurate with the scale of business must be put in place.

Full text of the guideline: https://www.ia.org.hk/en/legislative_framework/files/GL5.pdf