The Hong Kong Federation of Insurers (HKFI) today (30 March 2020) welcomes the Financial Services Development Council (FSDC) in publishing the paper entitled “Insuring Hong Kong’s Future – Tax Recommendations to Enhance and Grow Hong Kong’s Insurance Industry”.

We are supportive of any means that help promote the Hong Kong insurance market and reinforce its status as the regional insurance hub. The findings of paper are comprehensive and aligned with what the HKFI has been advocating for, such as extending the applicability of preferential tax rates to additional classes of general insurance business.

Currently, retail policyholders can enjoy tax concessions on Voluntary Health Insurance Scheme, Qualifying Deferred Annuity Policy as well as MPF Voluntary Contributions, and some can claim deductions for qualifying premiums paid for spouse/dependents. We support the suggestion on extending the concession to a wider range of medical, critical illness and life protection products, which will encourage Hong Kong people to make provision for healthier lives and plan for retirement, and thus benefiting our society at large.

“We appreciate FSDC’s efforts in exploring ways to enhance the competitiveness of Hong Kong as an insurance hub and their recommendations in new tax incentives,” said Mr Praveen Daswani, Chairman of the Hong Kong Federation of Insurers. “Amid the Covid-19 and in view of the economic downturn, more facilitation measures will be needed and welcomed to help keep sustainable growth of our industry.”

The HKFI will continue working closely with the FSDC, the Financial Services and the Treasury Bureau and Insurance Authority to drive changes in light of the recommendations in this paper.