HK lures overseas insurers to relocate to the city amid trade uncertainties

Hong Kong invites overseas-established insurers with major business in Hong Kong to re-domicile to the city to mitigate external challenges, according to Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury.

Speaking at an event on Monday, Hui said that insurance companies set up outside Hong Kong can relocate to Hong Kong while retaining the status of body corporate to ensure business continuity and benefit from Hong Kong's governance system and simple tax regime, so as to make it easier for enterprises to enter the mainland China or the Asian market.

Hui added that the tariff policies of the United States have brought great risks and challenges to business operations, and he believes that Hong Kong can be a place for enterprises to seek insurance, reinsurance and risk management services. 

He said that the establishment of captive insurance companies in Hong Kong would be entitled to a 50 percent profits tax deduction.

Last week, Hong Kong's lawmaking body Legislative Council passed the amendment to a company bill introducing a re-domiciliation regime, effective from Friday.

Hong Kong will continuously review its policies in the future to attract more multinational groups of different sizes and from different regions to choose the city as a base for their captive insurance companies, Hui continued.

The Hong Kong government is encouraging the insurance sector to launch innovative products for elderly services in conjunction with the Greater Bay Area, and is appealing to large-scale insurance groups with elderly services capability in foreign countries to settle in the city.

Hui hopes that the industry will cooperate with the relevant organizations to deepen the proper financial arrangements for the elderly.