Hong Kong is seeking to anchor its financial strategy on insurance and reinsurance, with Chief Executive John Lee’s 2025 Policy Address on September 17 outlining measures to channel insurers’ capital into infrastructure, expand captive and reinsurance business, and strengthen marine risk capacity via a proposed marine pool.
Lee told the Legislative Council on Tuesday that the government would amend legislation in 2026 to lower capital requirements for infrastructure investment. The aim, he said, was to “encourage the participation of insurance funds in infrastructure financing” and provide concessions for local projects, allowing insurers to deploy more long-term capital.
The Insurance Authority (IA) welcomed the measures, saying they would reinforce Hong Kong’s position as an international financial centre. “Being in charge of both prudential supervision and market development, the IA has made relentless efforts to improve our competitiveness in captive and reinsurance business,” said Stephen Yiu, Chairman of the IA.
Similarly, the Hong Kong Federation of Insurers voiced its support for the measures. It said it would continue working with the government and the IA to “bring the above measures into full play to enhance Hong Kong’s position as the global insurance hub and risk management centre.”
The Policy Address also pledged support for the growth of captive and reinsurance business. According to Lee, the government would encourage the market to introduce new products in areas of rising demand, including cross-boundary elderly care, cross-boundary driving, and the low-altitude economy.
Lee also outlined measures to expand residential and medical care options for Hong Kong seniors in the Greater Bay Area, a policy backdrop that could support demand for cross-boundary elderly care insurance products. On this, Yiu said the regulator is working with industry to facilitate access to medical treatment and elderly care in the Mainland.
Marine insurance formed another key theme. The government and the IA are working with industry stakeholders to set up a dedicated marine risk pool, which officials said would boost Hong Kong’s underwriting capacity for both local and Mainland risks. Yiu described the proposed pool as one that would “open up new opportunities and bolster our resilience against contingencies.”
In addition, the insurance sector has established a task force to design low-altitude economy insurance products, drawing on data from the government’s regulatory sandbox. Lee also pointed to plans to integrate insurance into intellectual property financing through an IP financing sandbox and noted growing opportunities in pet insurance as part of the city’s wider consumer economy.
In response, Yiu noted that the IA has begun reviewing the design parameters of its Risk-based Capital Regime with a view to attracting more offshore reinsurance business and incentivising insurers to participate in infrastructure financing.
Backed by strong national support and Hong Kong’s global connectivity, Lee said the measures were intended to consolidate the city’s position as an international financial and risk management hub as the National 14th Five-Year Plan period concludes and preparations begin for the 15th.
The insurance-related measures were presented as part of a wider strategy to reinforce Hong Kong’s international financial centre status. Other priorities in the Policy Address include expanding bond and currency markets, promoting green and sustainable finance, and strengthening the asset and wealth management sectors.
