Hong Kong is losing insurance business to Singapore, but the local authorities are implementing an action plan to strengthen its position as Asia’s insurance hub.
Several insurance and reinsurance companies, including Swiss Re, have left or downsized their Hong Kong offices and moved to Singapore. In a bid to retain insurers, Hong Kong is establishing an independent insurance authority to modernise the industry's regulatory framework, the Hong Kong Federation of Insurers said. The government will also build a centralised claims database to detect and prevent fraud. Additionally, Hong Kong will develop a scheme to protect policy holders' interests by limiting their financial exposure in the event of an insurer's insolvency.