The Insurance Authority in Hong Kong has published a public consultation paper on draft rules concerning actuary requirements, maintenance of assets, valuation basis and capital requirements for specific insurers, including captives.
The paper stated that captives and other small-sized insurers are proposed to be exempted from the requirement of appointing actuaries in respect of general business.
It also highlighted that captives are to be exempt from the requirement of maintenance of assets for all authorised insurers on general business in or from Hong Kong.
The insurance authority has also suggested simplifying the prescribed capital amount and minimum capital amount to a minimum of HK$2m for marine insurers and captives.
“Given the unique features of marine mutual insurers and captive insurers in terms of capital and policy holders’ characteristics, the draft Insurance rule aim to provide a simplified capital regime for these insurers,” the consultation paper said.
Members of the public are invited to submit comments to the IA on or before 9 February 2024.
The Amendment Ordinance, together with the relevant subsidiary legislation, is expected to commence operation in full on a date to be appointed by the secretary for financial services and the Treasury after the passage of the four Rules by the Legislative Council in 2024.