(SHADA: TEHRAN) -- Hong Kong has long been recognized as the central insurance and reinsurance market in the Asia-Pacific region and has played a key role in regulating the region over the past year.
In this regard, the powers of the Insurance Authority in this country were expanded with the adoption of a new law to supervise insurance holding companies in March this year.
The new law is in line with international standards and procedures, making Hong Kong an ideal base for active insurance groups in Asia and the Pacific, said Clement Cheung, CEO of the Insurance Authority in Hong Kong.
Hong Kong has put its insurance laws in line with the laws of the mainland (China) at home, and upgraded its insurance policies to facilitate international trade, take advantage of insurance guarantees, and InsurTech to eliminate some imbalances in this country, he added.
In the meantime, insurance guarantees have become more popular due to the transfer of insurance risks to the capital markets, as a result of increasing the capacity of insurance and providing a means to diversify investments. To take advantage of this process, a dedicated regulatory framework for insurance guarantees has been in place in Hong Kong since early March, Clement Cheung continued.
According to him, in order to increase the attractiveness of operations in Hong Kong as a hub for the management of insurance activities, special tax concessions are also provided for reinsurance and direct insurance activities.
Although Hong Kong has one of the highest insurance penetration rates in the world, the market still has some structural imbalances. The use of InsurTech eliminates problems such as the dominance of traditional distribution channels and helps to distribute insurance products faster without the need for heavy investment and attention to the needs of society in the long run.