Insurance Authority of Hong Kong: Review of Risk-based Capital System, including introducing capital incentives for infrastructure investments.

The media previously reported that the Hong Kong Insurance Authority proposed a series of new regulations to guide insurance capital towards infrastructure and other assets, aiming to redirect funds to areas prioritized by the government. In response to this, a spokesperson for the Hong Kong Insurance Authority stated that a review of the Risk-Based Capital regime is underway this year, with the main goal of enhancing the competitiveness of the regime to support the long-term development of the insurance industry and the overall economy. The review includes plans to introduce capital incentives for qualified infrastructure investments to assist insurance companies in strengthening asset-liability management and providing targeted support, especially for local infrastructure development. The spokesperson mentioned that, in light of the latest regulatory developments, the review also covers proposals related to capital requirements for stablecoins and cryptocurrencies, gathering industry feedback and will timely submit the relevant proposals for public consultation.