HSBC has established Hong Kong’s first captive insurer company by a locally headquartered multinational corporation, advancing the city’s broader push to become Asia’s leading corporate risk management hub.
Wayfoong (Asia) Limited received regulatory approval from Hong Kong’s Insurance Authority (IA) on May 2, 2025, marking the fifth captive insurer licensed in Hong Kong. The subsidiary will insure HSBC’s employee benefits risks across Hong Kong and other markets, acting as a key risk management tool for the bank.
“This decision taken by the HSBC Group reflects our growing attractiveness and promising potential as a key captive domicile, leveraging the unique advantages of Hong Kong to facilitate multinational enterprises in managing their global operations,” said Clement Cheung, Chief Executive Officer of the IA.
Christopher Hui, Secretary for Financial Services and the Treasury, also welcomed HSBC’s decision. “Hong Kong has a strong foundation in investment and trade, making it an ideal location for global enterprises to access insurance, reinsurance and risk management services, as well as establish captive insurers,” he said.
Compared to general insurers, Hong Kong’s regulatory framework offers streamlined authorisation, a reduced capital requirement of HK$2m (about US$260,000) and less stringent reporting obligations. Companies also benefit from a 50% profits tax concession, lowering the rate to 8.25%.
Following the Chief Executive’s Policy Address last October, the IA launched a multi-pronged strategy to position Hong Kong as a preferred captive insurance domicile. The initiative focuses on streamlining approvals and strengthening Hong Kong’s role as a “super-connector” between mainland China and international markets.
The IA is also bolstering its regulatory competitiveness and investing in talent development to support the sector’s growth. Hong Kong currently hosts five captive insurers, including four established by mainland Chinese companies. These insurers reported an average premium income of US$56m in 2023, exceeding the global average by nearly four times.
