Regulator welcomes CBIRC regularisation measures
Insurance Authority welcomes the China Banking and Insurance Regulatory Commission to regularise preferential treatment for the Hong Kong insurance industry
The Insurance Authority (IA) has welcomed the China Banking and Insurance Regulatory Commission (CBIRC) to include the preferential treatment for Hong Kong insurance industry as an integral part of the Solvency Regulatory Rules II for Insurance Companies (the Rules).
The preferential treatment has been operating smoothly since its introduction in 2018. The treatment was extended annually to allow the preferential factor to be applied on the capital requirement for Mainland insurers when they cede businesses to eligible Hong Kong professional reinsurers. Furthermore, the Rules prescribe the capital requirement for Mainland insurance institutions issuing catastrophe bonds in Hong Kong.
The CBIRC said that these measures have implemented the expansion of the national opening-up policy and strengthened the mutual trust in supervisory work between the Mainland and Hong Kong, which are conducive to better risk management of the industry and enhancing stable development for both markets.
On the other hand, the IA pointed out that the decision of CBIRC fully reflects the importance of Hong Kong’s position as a global risk management centre under the “dual circulation” economic strategy and its contribution to facilitating the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.
