China Vows Continued Support for Hong Kong Insurance Sector's Global Role
China's financial regulator pledges ongoing backing for Hong Kong's insurance industry to expand globally and become an international risk management hub, promoting cross-border initiatives and cooperation.
China's National Financial Regulatory Administration (NFRA) Vice Chairman Cong Lin has pledged continued support for Hong Kong's insurance industry to expand its international influence and develop into an international risk management centre. Speaking at the Asian Insurance Forum in Hong Kong on 13 November, Cong Lin outlined plans to deepen insurance connectivity in the Guangdong-Hong Kong-Macau Greater Bay Area, encourage more mainland institutions to issue catastrophe bonds in Hong Kong, and enhance international reinsurance cooperation.
Cong Lin noted that China's domestic insurance sector has achieved significant progress in high-quality development. In the first nine months of this year, premium income reached 5.3 trillion yuan (US$734 billion), and total industry assets stood at 45 trillion yuan (US$6.2 trillion) at the end of September, an 8 per cent increase from the start of the year. The comprehensive and core solvency ratios were 178 per cent and 132 per cent respectively, with key operational and regulatory indicators within a healthy and reasonable range.
Highlighting what she described as "major global transformations unseen in a century," Cong Lin said instability and uncertainty have risen markedly. As a risk-management industry, insurance must closely monitor the impact of geopolitical changes, enhance underwriting capacity for risks such as geopolitical conflicts and supply chain disruptions, broaden risk-diversification channels, and explore cross-border risk-sharing mechanisms.
Cong Lin also pointed to profound changes in the global interest rate environment, which demand stronger asset-liability management capabilities. She called for dynamic analysis of the global economy and financial markets, optimisation of asset-liability matching, and improved cross-cycle financial stability. The industry must also analyse the impact of climate change, adapt to technological shifts, and conduct scientific assessments of international insurance cycles.
The NFRA vice chairman said the regulator supports the insurance industry in strengthening cooperation on products, services and talent development in areas such as catastrophe insurance, green insurance, marine insurance, and health and pension insurance. As cross-border insurance activities become more active, she expressed willingness to enhance daily communication, information sharing and standard alignment with other regulators under bilateral and multilateral frameworks, reduce regulatory arbitrage, and jointly build a regional financial safety net.