HSBC’s subsidiary approved as first captive insurer in Hong Kong

The government imposed a 50% tax concession for local captive insurers.

The Hong Kong Insurance Authority (IA) has authorised Wayfoong (Asia) Limited, a wholly-owned subsidiary of the HSBC Group, as the first captive insurer established by a multinational enterprise based in Hong Kong.

Clement Cheung, CEO of the IA, said HSBC’s decision highlights Hong Kong’s growing appeal as a captive insurance domicile, reflecting the city’s strategic role in supporting multinational operations and expanding its insurance industry.

Christopher Hui, secretary for Financial Services and the Treasury, welcomed the move, noting that Hong Kong’s strong position in investment and trade makes it well-suited for global firms to access insurance, reinsurance, and risk management services. 

He also pointed to the government’s ongoing efforts to support the sector, including a 50% tax concession for local captive insurers.