Hong Kong approves license of 8th Chinese captive insurer

Shanghai Electric Group has received approval from the insurance authority.

The Hong Kong Insurance Authority has approved the plan of power generation and electrical equipment manufacturer Shanghai Electric Group to set up a captive insurance company in the city, according to local media reports.

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The insurance unit aims to help the company reduce foreign exchange outgoings and reduce the cost of risks, according to Zhang Jie, general manager of Shanghai Electric Hong Kong.

“We intend to build Shanghai Electric Insurance as the risk management platform of the group,” Jie was quoted in a media report.

To date, Shanghai Electric represents the eighth Chinese captive insurer in Hong Kong where it will contend against Cosco, PetroChina, China Railway, Yuedian, CNOOC CGN and Sinopec.