To foster the development of Hong Kong as an international maritime center, the Insurance Authority ("IA") has exempted the premium levy for the marine related (i.e. classes 6 (ships) and 12 (liability for ships) of insurance business as specified in the Insurance Ordinance) insurance contracts. In light of the uniqueness of business operations of eligible marine insurers, the IA has exempted them from the following guidelines:
On 6 June 2019, the IA hosted the first P&I Forum in Hong Kong, with the aim to provide a platform for attendees to share:
The forum was well attended by the Chief Executive Officer of the International Group of P&I Clubs, the senior executives from all P&I clubs' local offices and the China Shipowners Mutual Assurance Association. The P&I Roundtable was held on the 19 November 2019 acting as a follow up event for the first P&I Forum and a platform for continuous dialogue between the IA and the P&I community in Hong Kong.
To support sustainable growth of the marine insurance industry, the IA, together with International Union of Marine Insurance ("IUMI") and Marine Insurance Association ("MIA") of The Hong Kong Federation of Insurers ("HKFI"), will continue to actively meet with various marine insurance stakeholders to maintain close and effective dialogue with the industry. Since 21 May 2020 IUMI has become a member of the IA's Belt and Road Insurance Exchange Facilitation (BRIEF), making it the first industry association partnering with BRIEF.
The Inland Revenue (Amendment) (Profits Tax Concessions for Insurance-related Businesses) Bill 2019 was passed by the Legislative Council on 15 July 2020 and commenced on 19 March 2021.
The amended Inland Revenue Ordinance (Cap. 112) reduces the profits tax rate by 50 per cent (i.e. 8.25 per cent) for all general reinsurance business of direct insurers, specialty insurance business2 of direct insurers and specialty insurance brokerage business. It is aimed at promoting the development of the marine and specialty risk insurance businesses of Hong Kong and enhance the development of high value-added maritime services. It is also intended to assist the insurance industry to seize new opportunities, including those arising from offshore investments of Chinese enterprises.
2General business excluding health, mortgage guarantee, motor, employee compensation and owner’s corporation third party liability.