The Financial Services Development Council (FSDC) today released a research report titled “Insuring Success: Enabling Sustainable Growth and Innovation to Cement Hong Kong's Role as a Premier Global Insurance Hub.”

The insurance industry is a foundational pillar of Hong Kong's economy and its role as an international finance centre. With over 150 authorised insurers, including six of the world's top 10 insurance companies, Hong Kong hosts an array of offerings – spanning life and general insurance, virtual insurance, reinsurance, captive insurance, marine insurance, and others. Beyond catering to the local market, Hong Kong's insurance policies have also gained significant traction in non-local markets, notably Mainland China and other emerging regions. While commending the Government and regulators'proactive initiatives in advancing the development of the insurance industry, there remains significant potential to further strengthen Hong Kong's position as a global insurance and risk management hub.

“Hong Kong is actively expanding its role as a regional insurance hub by capitalising on the opportunities presented by the development of the Greater Bay Area and neighbouring regions. With the rise of Asia's wealth, Hong Kong is ideally placed to lead the sector in these burgeoning markets,” said Mr. Benjamin Hung, Chairman of the FSDC. “Supported by a conducive regulatory framework, clear policies, and robust capacity-building initiatives, Hong Kong's vibrant insurance ecosystem is primed to drive innovation, attract global capital, and solidify the city's status as a leading global financial hub for insurers, asset owners and managers.”

Reflecting on the key challenges facing the industry and untapped opportunities, the paper sets out strategic recommendations aimed at enhancing the city's value propositions as a thriving and dynamic hub for the insurance industry. These policy recommendations include (i) developing a comprehensive roadmap to accelerate cross-sectoral digital transformation; (ii) exploring full-fledged adoption of “iAM Smart”, digital ID and associated digital platforms for insurance services;
(iii) leveraging insurance capital to enrich sustainable investment under the Risk-Based Capital Regime; (iv) enhancing competencies and understanding in sustainability reporting among local stakeholders; (v) cultivating a conducive ecosystem for developing Insurance-Linked Securities; and (vi) introducing more longer-duration bonds to enhance insurance investment strategies.

The full version of the report can be downloaded from the FSDC website: www.fsdc.org.hk.