Capital Requirements and Tax Exemptions are Key for Hong Kong's Marine Insurance Industry Growth
Capital Requirements for Marine Insurance in Hong Kong
Hong Kong has the potential to become an international hub for marine insurance and related businesses, provided the city offers tax incentives and implements rules to make it easier for insurers to raise capital, according to a US insurance broking giant.
Key Insights from Carl Hess, CEO of Willis Towers Watson
- Tax Exemptions: The government will provide tax exemptions for ship-leasing and tax concessions for marine insurance, shipping management, and agencies.
- Need for Talent: Policies to attract insurance and shipping talent must be enacted by teaching related courses in universities or through immigration schemes.
- Capital Raising Policies: Insurers require policies that enable easier capital access to support their business amid new accounting rules and capital requirements.
Hess believes that implementing these changes will enhance customer protection while encouraging the growth of the marine insurance industry in Hong Kong. Furthermore, the government continues to promote the local insurance sector to facilitate expansion opportunities.
Expanding Operations in Asia
WTW, one of the top five largest insurance brokers worldwide, is eager to capitalize on emerging opportunities in Hong Kong and across Asia. The firm employs 48,000 people globally and has plans to grow its presence in the region.
The recent introduction of the eMPF platform has improved administrative efficiency for Hong Kong's Mandatory Provident Fund, assisting WTW in offering comprehensive general insurance solutions.
The Future of Insurance with Artificial Intelligence
- The acquisition of Butterwire, an AI-driven data analytics provider, will enable better risk calculation and document analysis.
- Hong Kong’s strategic location makes it an attractive destination for the shipping industry and insurance players.
- With correct policy measures, the city's insurance industry could significantly flourish.
Hess remarked that while AI will not replace staff, it will significantly enhance their efficiency, offering a glimpse into the future of insurance.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.