Hong Kong-headquartered FuSure Reinsurance announced on Monday (24 March) it has received authorisation from the Hong Kong Insurance Authority (HKIA) to offer long-term insurance products.
Following the approval, the reinsurer is now authorised to offer Class A and Class D products, allowing it to expand its product range to include life, annuity, and permanent health. As a result, the reinsurer has upgraded its General Insurance operations to a Composite License.
“This license upgrade represents a significant milestone in FuSure’s strategic expansion in the insurance sector, marking a new phase of the company’s operation in the reinsurance sector and laying a robust foundation for its future growth in the global market,” the reinsurer said in its announcement.
FuSure added it is also actively exploring ‘product innovation opportunities’ in areas such as health, motor, pet, cyber, and liability insurance. The business also plans to “progressively expand” into diversified product lines and explore other international markets.
FuSure counts Chinese tech giant Tencent among its shareholders. It launched in 2021 with an initial core focus of offering low-volatility personal risks such as health and accident insurance in Greater China.
Last May, AM Best affirmed the reinsurer’s financial strength at A- (Excellent), adding that FuSure benefits from Tencent’s 85.01% ownership and support, which could lead to a competitive advantage. The rating agency also said that it expects the reinsurer will diversify its product offerings and geographical reach.
Commenting on FuSure’s approval, the IA said it remains committed to promoting the development of the city’s reinsurance industry. A spokesperson described Hong Kong as a “super-connector” and “an important springboard for Mainland enterprises to ‘go global’,” adding that Mainland reinsurers expanding in Hong Kong can diversify risks abroad, serve overseas clients, and tap into emerging markets.
The IA added that authorisations such as FuSure’s can also help cultivate local talent in the sector, “injecting momentum into the development of the reinsurance industry”.
The Insurance Authority continues to encourage the development of tailored risk management solutions for Mainland and international clients, with reinsurance business conducted by reinsurers authorised in Hong Kong currently enjoying a 50% concession in the profits tax rate.
