The Hong Kong Federation of Insurers (HKFI) welcomes the measures with relevance to the insurance sector announced by the Financial Secretary in his Budget Speech today (28 February 2024).

In the 2024-25 Budget, the Financial Secretary of the HKSAR mentioned:

• “…In the first half of 2024, we will submit a legislative proposal enabling companies domiciled overseas, especially enterprises with a business focus in the Asia-Pacific region, to re-domicile in Hong Kong.” (Paragraph 36 of the Budget) 
  
  

• “The new Capital Investment Entrant Scheme (new CIES) will soon invite applications.  Eligible investors who invest HK$27 million or more in qualifying assets and place HK$3 million into a new CIES Investment Portfolio may apply to reside in and pursue development in Hong Kong... (Paragraph 139 of the Budget)
  
  

• “…To deepen Hong Kong's green and sustainable finance development, enterprises must align their practices in sustainability disclosure with international standards.  Financial Services and the Treasury Bureau and the SFC will formulate a roadmap and vision statement to assist companies and financial institutions in sustainability reporting and the analysis of relevant data, elucidating our vision of promoting green and sustainable finance.” (Paragraph 79 of the Budget)
  
  

• “To bolster the competitiveness and advantages of the financial services industry in Hong Kong, the Government will earmark $100 million to promote the sustainable development of financial services. This includes green and sustainable finance, fintech, asset and wealth management, headquarters business, and risk management etc.” (Paragraph 147 of the Budget) 
  
  

• “…We have been making dedicated efforts to invite Mainland and overseas enterprises to establish captive insurers in Hong Kong, enhancing their corporate risk-management capabilities. We are also promoting the development of insurance‑linked securities (ILS) by establishing a dedicated regulatory regime and launching a pilot grant scheme. To date, we have facilitated the issuance of four catastrophe bonds in Hong Kong, one of which marked the inaugural listing of its type of ILS. We will continue to attract more issuing institutes to Hong Kong, while nurturing talent and propelling the industry's development.” (Paragraph 146 of the Budget) 

We are delighted to note that the measures therein are aligned with some of our proposals, including re-domiciliation to Hong Kong, CIES, headquarters business and risk management, etc. Looking ahead, the HKFI will continue being the voice of the industry and collaborating with the Government to bring various initiatives to fruition, further enhancing Hong Kong's position as the International Financial Centre and Risk Management Hub.