The Hong Kong Insurance Authority (IA) recently approved SAIC Motor Insurance Limited, a captive insurer set up by SAIC Motor Corporation Limited.
This marks the second captive insurer authorised in 2025, indicating increasing engagement with Hong Kong’s efforts to build a robust captive insurance sector.
Clement Cheung, chief executive of the IA, noted that this authorisation points to rising momentum in Hong Kong’s campaign to develop a dynamic captive domicile.
“This is already the second authorisation of this kind in 2025, reflecting a positive response from the market and clear signs of momentum building up on our campaign to develop Hong Kong into a vibrant captive domicile,” he said.
The IA’s strategy targets the evolving risk management requirements of Mainland state-owned and private companies as well as local multinational firms.
The regulator is also assessing the possibility of broadening the types of captive structures permitted and expanding risk coverage options to enhance the city’s global competitiveness in insurance.
In May 2025, HSBC Group established Wayfoong (Asia) Limited, marking the first time a multinational enterprise (MNE) has created a captive insurance entity in Hong Kong.
The IA’s authorisation of this captive insurer is part of the city’s push to become a premier hub for international insurance and risk management.
Captive insurers enable large corporations to self-insure certain risks, providing greater control over claims, retaining underwriting profits, and designing policies that fit their specific operational exposures.
Cheung said HSBC’s move signals a growing confidence among multinational firms in Hong Kong as a regional centre for risk management.
“This decision taken by the HSBC Group reflects our growing attractiveness and promising potential as a key captive domicile, leveraging the unique advantages of Hong Kong to facilitate multinational enterprises in managing their global operations. This is also a fine example of how the IA strives and succeeds in elevating the prominence of Hong Kong as an international financial centre and promoting balanced development of different segments of the insurance industry,” he said in a previous statement.
Concurrently, the IA’s provisional data for the first quarter of 2025 (Q1 2025) reveals steady activity in Hong Kong’s insurance market, with total gross premiums reaching HK$220.3 billion.
New long-term insurance premiums, excluding retirement schemes, increased by 43.1% year-on-year to HK$93.4 billion.
The non-linked individual business segment accounted for HK$90.1 billion, predominantly driven by participating business at HK$81.7 billion.
Linked individual business premiums also rose significantly to HK$3.2 billion.
Qualifying deferred annuity policies (QDAPs) remained a key product, with around 35,000 policies issued generating HK$2.2 billion in premiums – about 2.4% of total individual business premiums.
Premium income from in-force long-term policies increased by 31.1% to HK$189.1 billion.
The breakdown included HK$169 billion from non-linked individual business, HK$6.2 billion from linked business, and HK$11.7 billion from retirement scheme business.
Claims and benefits paid to policyholders declined by 7.4% to HK$94.3 billion, reflecting changes in claims experience during the period.
