Hong Kong introduces the GWS regulatory framework
The Hong Kong Insurance coverage Authority (IA) has formally rolled out its new group-wide supervisory framework (GWS) and new regulatory regime for insurance-related securities actions (ILS).
Moody’s analysts have beforehand mentioned that utilizing GWS ought to assist strengthen insurance coverage teams’ capital and danger administration, enhance their public disclosure, and cut back the scope of regulatory arbitrage.
“The GWS framework is absolutely aligned with worldwide requirements and greatest practices, positioning Hong Kong as a really perfect base for big insurance coverage teams and a coordinator of supervisory efforts amongst all related jurisdictions in Asia-Pacific,” mentioned mentioned Clement Cheung, CEO IA.
He added, “It is a central a part of our strategic marketing campaign to strengthen Hong Kong’s standing as a world danger administration heart and regional insurance coverage heart.”
The IA labored with key trade stakeholders to develop GWS pointers, which set new assurance requirements for a variety of areas, together with enterprise danger administration, company governance, necessities capital and public disclosure.
Concerning the regulation of ILS actions, the IA attracts benchmarks from abroad expertise whereas considering native circumstances, with the help of the ILS Grant Pilot Program not too long ago introduced by the Monetary Secretary.
Along with the GWS framework and the regulatory regime for ILS actions, new legislative modifications additionally intention to increase the scope of insurable dangers for captives domiciled in Hong Kong.
Mixed with the tax benefits for all normal reinsurance actions of direct insurers, sure normal insurance coverage actions of direct insurers and sure insurance coverage brokerage actions, the IA believes that these initiatives will help the event of shopper insurance coverage. maritime and specialised dangers in Hong Kong.