In Hong Kong, a marine insurer as defined under section 2 of the Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U), is an authorized insurer which is:
(1) a marine mutual insurer; or
(2) carrying on insurance business in or from Hong Kong predominantly provides insurance relating to risks arising out of marine adventures but is not a marine mutual insurers, and is approved by the Insurance Authority under rule 3(4) of Cap. 41U.
Given the unique features in terms of capital and policy holders’ characteristics, salient regulatory concessions are provided to marine insurers highlighted as follows:
| Item | General Business Insurer | Marine Insurer |
|---|---|---|
|
Capital Requirements: |
Insurance (Valuation and Capital) Rules (Cap. 41R) prescribes a risk-based capital regime. In the determination of prescribed capital amount, market risk, life insurance risk, general insurance risk, counterparty default and other risk, and operational risks are included. The capital base must also be no less than HK$20 million. |
Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U) prescribe a dedicated capital regime for marine insurers. In the determination of prescribed capital amount, a simple calculation method based on its net premium or relevant claims outstanding is used. The capital base must also be no less than HK$2 million. |
|
Certifying actuary: |
Insurer is required to appoint certifying actuary, unless exempted under rule 3 of Insurance (Exemption to Appointment of Actuary) Rules (Cap. 41Q) |
Exempted |