HKIA promotes captive insurance for overseas energy risks

MM Lee emphasised Hong Kong’s role as an int’l risk management hub.

Hong Kong’s Insurance Authority (HKIA) emphasised the use of captive insurance to manage risks associated with overseas energy projects and the challenges and opportunities posed by the energy transition. 

The authority said at a breakout session at the Belt and Road Summit on 11 September 11 risk management for sectors like electric vehicles, could benefit from sustainable development.

MM Lee, executive director of the HKIA's General Business Division, highlighted Hong Kong’s growing role as an international risk management hub, particularly for Mainland enterprises looking to manage risks in overseas projects. 

He noted that Hong Kong is positioned to offer comprehensive services to captive insurers and aims to be the preferred domicile for both state-owned and private corporations expanding into Belt and Road countries.

The discussion also touched on nurturing a more dynamic risk management ecosystem in Hong Kong, the value a Hong Kong-based captive insurer can offer its parent company, and how the local insurance sector can meet the rising demand for reinsurance capacity in light of the low-carbon energy transition.