Financial Secretary Paul Chan Mo-po unveiled Hong Kong’s strategic initiative to attract global insurance firms through an innovative company relocation mechanism during his keynote address at the Hong Kong Insurance Forum. Effective May 23, this groundbreaking policy enables foreign-registered insurers to re-domicile to Hong Kong while maintaining legal continuity, offering a compelling solution to growing geopolitical trade uncertainties.
The relocation framework provides multiple competitive advantages for international insurers. Companies can transition seamlessly while preserving their original legal identities, gaining access to Hong Kong’s robust financial ecosystem. The package includes significant tax incentives, particularly for captive insurers who will benefit from a 50% profits tax reduction – a crucial advantage for firms navigating U.S. tariff volatility. Participants will also enjoy streamlined access to both China’s Greater Bay Area and ASEAN markets, while operating within Hong Kong’s common law system with its free capital flows and attractive 16.5% corporate tax rate.
This initiative specifically targets growth in Hong Kong’s captive insurance sector, which has seen 23 new entrants since 2020 regulatory reforms. The government is particularly focused on attracting midsize multinationals with
500million−plusrevenues,offeringspecializedriskmanagementservicestosupportregionalheadquarterscoveringBeltandRoadInitiativeprojectexposures.ComparedtorivalhubslikeSingaporeandBermuda,HongKongdifferentiatesitselfthroughdirectaccesstoChinas1.7 trillion insurance market, strong intellectual property protections, and a deep talent pool of over 8,500 insurance specialists.
The industry has responded positively, with early adopters including European life insurers shifting Asian operations, London-based property & casualty firms establishing parallel structures, and Chinese multinationals consolidating regional coverage. Looking ahead, the Treasury Bureau plans to expand Hong Kong’s double taxation treaty network beyond the current 45 countries, introduce a captive insurer licensing fast-track by third quarter 2025, and propose legislative amendments to facilitate insurance-linked securities.
This strategic move comes as Hong Kong’s insurance sector demonstrates strong growth, with premiums increasing 18% in 2024 driven largely by mainland demand. The relocation mechanism is projected to attract $12 billion in new insurance-related foreign direct investment over the next three years, solidifying Hong Kong’s position as Asia’s leading insurance hub while providing multinationals with a stable platform amid global trade uncertainties. The initiative reflects Hong Kong’s unique value proposition as a gateway to China combined with international best practices in financial services regulation.
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