Hong Kong promotes risk management expertise for Belt and Road Initiative

The Insurance Authority (IA) of Hong Kong hosted a breakout forum at the recent two-day Belt and Road Summit that focused on the importance of risk management in projects under the Belt and Road Initiative (BRI). The session, held during the high-profile two-day event, also gave the IA and local risk and insurance professionals the chance to showcase how Hong Kong has carved out a niche for itself as an insurance and reinsurance hub and a risk management centre for BRI projects, said the IA. The risk management session was entitled: 'Risk Management as the Common Language amongst Stakeholders of the Belt and Road Initiative (BRI): Bridging Risk Transfer and Project Finance'. It was hosted by Simon Lam Sui-kong, executive director (general business) of the IA. The speakers included: Liu Ji-Feng, director and general manager, Sinopec Insurance; Ashish Makhija, director, global credit insurance group, capital structuring and distribution group, Standard Chartered Bank; Kade Spears, head of specialty insurance, SCOR, Channel Syndicate; Patrick Zeng, CEO, Hong Kong and Greater China, Allianz Global Corporate & Specialty; and Robert Zhang, board director of RIMS and risk management and compliance director at IKEA China. The speakers shared their views and experience to demonstrate how insurance and project finance are interlinked to underpin the commercial viability of enterprises, especially state-owned enterprises (SOEs), investing in BRI projects, explained the IA. “Insurance, as the most important instrument for bridging risk transfer and project finance, helps SOEs meet the expectations of the State-owned Assets Supervision and Administration Commission of the State Council for safeguarding national assets and mitigating potential loss for their BRI projects,” said Mr Lam. “With the strong presence of multinational insurers and reinsurers, and a deep talent pool of risk management and insurance professionals, Hong Kong has the experience and expertise to provide professional risk management services and effective insurance and reinsurance solutions for the BRI projects of SOEs, and thus address the challenges faced by these infrastructural developments,” he said. Mr Lam added that, with the support of the mainland authorities, the IA has been stepping up its efforts to promote Hong Kong as a risk management centre for the BRI. In December 2018, the IA launched the Belt and Road Insurance Exchange and Facilitation platform, to promote the exchange of intelligence, forge alliances and facilitate networking among relevant stakeholders. Currently, the platform has 39 members, including insurers, reinsurers, captive insurers and insurance brokers. In the same month, the IA authorised the first captive insurer after it started regulating the industry in June 2017, bringing the total number of captive insurers in Hong Kong to four. In July this year, the China Banking and Insurance Regulatory Commission extended its preferential treatment to Hong Kong under the China Risk Oriented Solvency System. This allows lower capital requirements for mainland insurers that cede businesses to qualified Hong Kong professional reinsurers. This treatment will help Hong Kong reinsurers participate and assist in BRI projects, said the IA.

Hong Kong promotes risk management expertise for Belt and Road Initiative

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