Second Captive Insurer Sets Up In Hong Kong
Hong Kong is relatively
new to the concept of captive insurers - companies set up so that
the parent company can insure its own risk, keeping the insurance
premiums within the group structure - but this week the Office
of the Commissioner of Insurance announced that CNOOC Insurance
Ltd, a subsidiary of China National Offshore Oil Corporation (CNOOC),
was authorised as a captive insurer under the Insurance Companies
Ordinance. CNOOC, an offshore
oil and gas exploration group in China, chose Hong Kong as a convenient
location to set up a captive insurer and Hong Kong's Commissioner
of Insurance, Benjamin Tang, has welcomed the move: 'We are very
glad to have the CNOOC taking the lead as the first Chinese mainland
enterprise to choose Hong Kong as the domicile of its captive
insurer. This is the second captive insurer authorised in Hong
Kong, the first one being authorised last June,' he said. Mr Tang said he hoped
that the arrival of CNOOC Insurance would encourage other enterprises
in mainland China to set up captive insurers in Hong Kong, adding
that Hong Kong provides an excellent environment for establishment
of captive insurers by Chinese Mainland enterprises. According to Mr Tang,
much of Hong Kong's attractiveness lies in its close proximity
to mainland China and availability of professional captive management
expertise. He said that the Hong Kong government would continue
its efforts in promoting captive insurance business in Hong Kong. .
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