INSURANCE | Staff Reporter, Hong Kong

Hong Kong proposes two-year ILS grant scheme

The amount of grant per issuance will be capped at HK$12m.

The Hong Kong government is looking to launch a two-year pilot insurance‑linked securities (ILS) grant scheme to woo insurers to issue ILS in the city, Finance Secretary Paul Chan said during his budget speech on 24 February.

The amount of grant for each issuance will be capped at HK$12m depending on the maturity of the ILS.

The government is currently undertaking legislative work to provide half-rate profits tax concessions to eligible insurers, including marine insurance and specialty insurance, he said.

It is also working to expand the scope of insurable risks of captive insurers and enhance the group-wide supervision framework by the end of March.

The government is also preparing for the implementation of a risk-based capital regime for the insurance industry to replace the rule-based capital adequacy regime, Chan noted.

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