The Hong Kong Federation of Insurers (HKFI) welcomed the signing of Supplement VIII to CEPA today (13 December 2011) which allows Hong Kong insurance brokerage companies to set up wholly-owned insurance agency companies in Guangdong Province (including Shenzhen) on a pilot basis.
 
"The latest development provides greater opportunities for local insurance professionals to establish business in the Mainland," said Mr Alex Chu, Chairman of the HKFI.  "It also helps facilitate the inter-flow of expertise between these two markets to the benefit of consumers."

Through the Hong Kong SAR Government, the HKFI will continue discussion with the relevant authorities in the Mainland to explore the possibilities of further liberalisation measures for locally-based insurers under CEPA.  Our proposals include lowering the threshold for Hong Kong insurers to conduct business in the Mainland and allowing Hong Kong insurers to provide post sales customer service in designated cities in the Guangdong Province on a pilot basis.   

Currently there are 164 authorized insurers in Hong Kong.  In 2010, total gross premiums of the Hong Kong insurance industry increased by 11% to $205 billion, representing about 11.8% of Hong Kong's gross domestic product.