The policy address recommended allowing the formation of special-purpose vehicles for issuing insurance-linked securities.
The security is a non-cyclical financial instrument whose value is affected by an insured loss event.
The government sees it as an additional risk management tool, apart from reinsurance, for insurers to diversify risks after referencing foreign countries' experience.
A policymaker suggested the securities allow only institutions to invest and predicted amendments of the Insurance Ordinance will start next year, a source said.
The Insurance Authority welcomed the initiatives. A spokesman said: "This will improve insurers' risk acceptance capacity and thus help promote the insurance industry's development in the long run."
The authority said it will work with the government on the legislative amendments to ease issuance of this type of securities.
Meanwhile, the government suggested introducing tax concessions to attract more ship-leasing firms to set up business, while amending the Inland Revenue Ordinance to promote marine insurance.
In technology, the government will establish two research clusters on health-care technologies and artificial intelligence or robotics technologies at the Science Park and introduce new schemes to support Cyberport's start-ups and tenants.