HONG KONG EXECUTIVE PROPOSALS RECEIVE COOL RECEPTION

Hong Kong government proposals for the development of the local insurance industry, put forward in the address of region chief executive Donald Tsang Yam-juen’s policy address last week, have received a cool reception from legislator Bernard Chan Chi-sze. He called them a rehash of policies put forward eight years ago. “The plan to encourage more overseas reinsurance firms to set up their operations here in Hong Kong seems very similar to proposals that were first discussed either years ago”, noted Mr Chan. He added that “since then, most of the world’s top reinsurance companies have established their presence locally, so it is difficult to see what more can be done”. Last week Mr Tsang said that more overseas reinsurers should be set up in Hong Kong to take advantage of the growing demand for reinsurance from insurers on the Chinese mainland. Mr Tsang’s proposals were criticised in some quarters for offering few new initiatives. Mr Chan warned that the government might need to offer more tax concessions to attract reinsurers from domiciles such as Bermuda.