Hong Kong adds two more exclusive self-insurance companies, Xu Zhengyu: Consolidating its position as Asia's leading insurance and risk management hub.

The Insurance Authority of Hong Kong has approved the establishment of two new captive insurance companies in Hong Kong, namely HSH Captive Limited, a subsidiary of the local luxury hotel brand Hong Kong Shanghai HK&S HOTELS, and SF Insurance Limited, a subsidiary of S.F. Holding, a global logistics service provider headquartered in Shenzhen. This brings the total number of captive insurance companies established in Hong Kong to 9. The Financial Secretary of Hong Kong noted that the captive insurance market in Hong Kong has been flourishing over the past two years. Two new captive insurance companies were authorized last year, and in the first half of this year, the Insurance Authority has issued licenses to three captive insurance companies, including the aforementioned two companies. Large enterprises can use these dedicated insurance subsidiaries to manage risks more flexibly and cost-effectively. The recent strong momentum reflects the increasing recognition of enterprises for Hong Kong's regulatory environment and strategic position. The Financial Secretary of Hong Kong, Paul Chan Mo-Po, stated that the decision of Hong Kong Shanghai HK&S HOTELS Limited and S.F. Holding Limited to establish captive insurance companies in Hong Kong once again demonstrates the firm confidence of domestic and foreign companies in Hong Kong's robust regulatory system and superior business environment. The gradual expansion of the captive insurance market in Hong Kong will further consolidate Hong Kong's position as a leading insurance and risk management hub in Asia, enabling businesses to manage risks more effectively and support sustainable economic growth. In recent years, the Hong Kong SAR Government has actively introduced a number of incentive measures, including a 50% profits tax concession for captive insurance business, making Hong Kong more competitive in terms of tax incentives compared to other Asian markets. The Insurance Authority of Hong Kong also provides various regulatory facilitation measures to captive insurance companies, including simplified capital requirements, exemptions from appointing certified actuaries, and exemptions from the requirement to maintain assets in Hong Kong. Paul Chan Mo-Po pointed out that these measures, while maintaining international regulatory standards, have created highly attractive conditions for captive insurance companies. He stated that Hong Kong has a pool of professional talent in insurance, law, actuarial science, and risk management, and with a mature financial ecosystem, captive insurance companies established in Hong Kong can effectively manage risks globally for their groups. The SAR Government and the Insurance Authority of Hong Kong will continue to actively engage with potential Hong Kong, mainland China, and international enterprises interested in establishing captive insurance companies, further strengthening the local captive insurance ecosystem. The Insurance Authority's Chief Executive, Clement Cheung, also mentioned that the addition of two new captive insurance companies confirms their successful implementation of strategies focusing on the development of local multinational enterprises, Chinese state-owned enterprises, and private enterprises, positioning Hong Kong as a leading risk management center. New market participants bringing in new business and diversified operating models will make significant contributions to nurturing a mature captive insurance ecosystem in Hong Kong.