Connectivity, talent, tech and data keys to insurance industry growth: Asian Insurance Forum
Financial Services and the Treasury Bureau unveils development roadmap highlighting the four enablers to coincide with the annual Insurance Authority forum
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Organised by the Insurance Authority (IA), the Asian Insurance Forum (AIF) 2022 was held on December 5 with the theme “Reflect, Reset, Revive for a Resilient Future”. Around 1,500 participants attended this IA annual flagship forum in person and online from around the world.
AIF 2022 was deliberately timed to coincide with the introduction of a development roadmap for the Hong Kong insurance sector, which illustrates the government’s vision and target for reinforcing Hong Kong as a global risk management centre and regional insurance hub, as well as relevant policy measures.
Hong Kong as a hub for global insurers
In his opening remarks, Stephen Yiu, Chairman of the IA, said that Hong Kong's "One Country, Two Systems" model has proven to be successful over the past years, allowing Hong Kong to remain as an international financial centre. He added that the insurance industry has demonstrated remarkable resilience and versatility amid the pandemic. “The IA can take pride on steady progress made along two key fronts in 2022.”
As the officiating guest, John Lee, Hong Kong's Chief Executive, said his Policy Address had put in place measures to reinforce Hong Kong's position as a leading hub in areas such as offshore Renminbi business, asset management, and risk management.
“Dovetailing with national strategies including the 14th Five-Year Plan, the Guangdong-Hong Kong-Macao Greater Bay Area development, and the Belt & Road Initiative, we strive to seize opportunities for growth, while also serving people's needs and maintaining market stability. The insurance industry, being an integral and substantial part of our economy, will continue to play an important role in this new chapter for Hong Kong,” said John Lee.
Commitment to continuous opening-up
Liu Fushou, Chief Risk Officer of the China Banking and Insurance Regulatory Commission (CBIRC), said in his keynote speech that mainland regulators would continue to support and work closely with Hong Kong to leverage strengths, foster the integration of the insurance sector and support influential institutions and platforms to establish a presence in the Greater Bay Area (GBA). The CBIRC has been helping insurers from Hong Kong set up service centres in primarily Nansha of Guangzhou, Hengqin of Zhuhai, and Qianhai of Shenzhen.
In a broader context, the CBIRC remains committed to opening up China's insurance market to foreign players. The regulator has introduced 34 new measures so far, including removing the cap on foreign insurers' shareholding in Chinese insurers, relaxing certain restrictions on their scope of business operations, and most importantly, local and foreign players will be treated fairly.
Think win-win
When communicating and negotiating with central and local regulators on allowing Hong Kong insurers greater access to the Mainland and specifically the GBA, Paul Chan, Hong Kong’s Financial Secretary, said the Hong Kong side, including the insurance industry, have to think from the country’s perspective and about how there can be a mutually beneficial solution for each region to strive for a win-win outcome.
“We want to be in one single market with free flow of capital, goods, information, and talents.” He mentioned that there are nine cities plus Macau and Hong Kong in the GBA, and cities may have different customs and legal systems, creating hurdles for economic integration between Hong Kong and the Mainland. However, the Hong Kong government would proactively pursue every opportunity it can to foster connectivity within the GBA.
Mr Chan added that there has been a paradigm shift in how the government works and it no longer takes laissez-faire policy approach. The government would roll out proactive measures and reach out to the businesses, enterprises and talents.
Development roadmap for the HK’s insurance sector
On the same day the forum was held, the Financial Services and the Treasury Bureau issued a development roadmap for the insurance sector, setting out the government's visions, missions, and policy measures to further strengthen Hong Kong's role as an international insurance and risk management hub.
According to Christopher Hui, Secretary for Financial Services and the Treasury, the visions and missions must be supported by four enablers, including connectivity with the Mainland and global markets, attracting new professionals from abroad and nurturing local talents, adoption of technologies, and data accessibility.
“There are two key drivers that motivate us to do this roadmap with the IA and the industry,” said Mr Hui. First, the pandemic has made people more aware of risk management and this means there are huge opportunities for the insurance sector. The second driver is the role of Hong Kong plays in China's dual circulation strategy as Hong Kong is the focal point of the domestic and international circulations.
Embracing financial innovation
In his keynote speech, Jonathan Dixon, Secretary General of the International Association of Insurance Supervisors (IAIS) said it is important for different jurisdictions to tackle the increasing global challenges and opportunities together.
He reflected on three areas where globally coordinated approach is critical, they are first, maintaining financial stability, second, responding to climate change, and third, embracing financial innovation. "These are all areas in which we need to reset and revive our approaches if we are to have a more resilient future."
The forum also featured a line-up of industry executives, medical practitioners, technology experts, lawmakers and think-tanks, who had insightful exchanges on the most concerning topics during the three panel discussions on group-wide supervision framework, maximising impact of Hong Kong in supporting dual circulation strategy and supporting climate actions.
In the concluding remarks, IA Chairman Stephen Yiu and CEO Clement Cheung, emphasised that connectivity, talent, technology and data are vital to the continued success of the financial services sector. And apart from attracting global and mainland talents, the Hong Kong insurance industry should also train and empower local talents and provide upward mobility opportunities for young people.
About AIF
The Asian Insurance Forum (AIF), an annual flagship event of the Insurance Authority in Hong Kong, provides a high-level platform for the local and overseas delegates from different segments of the insurance industry to share insights on development prospects and opportunities in the region.