Hong Kong Insurance Regulatory Authority: Commencing a review of the risk-based capital system, including introducing capital incentives for eligible infrastructure investments

The Zhitong Finance App learned that the media previously reported that the Hong Kong Insurance Regulatory Authority proposed a series of new regulations to guide the flow of insurance capital to infrastructure and other assets. This move will redirect funds to priority areas of government development. In response, a spokesman for the Hong Kong Insurance Regulatory Authority said that a review of the risk-based capital system is being carried out this year, mainly aimed at enhancing the competitiveness of this system to support the long-term development of the insurance industry and the overall economy. The review includes plans to introduce capital incentives for qualified infrastructure investments to help insurers strengthen asset liability management and provide targeted support for local infrastructure development in particular.

The spokesperson said that in light of the latest regulatory developments, the review also covers proposals on capital requirements, including those relating to stablecoins and crypto assets. Comments from the industry are being collected, and relevant suggestions will be submitted to the public for consultation in due course.