Regulations & Policies

Rules on the establishment, approval and supervision of captive insurers

Hong Kong Captive Regulation: Authorisation, Capital and the 8.25% Concessionary Tax

Hong Kong authorises captives under section 8 of the Insurance Ordinance (Cap. 41), restricts them by statute to group-related general insurance risk, sets a HK$2 million paid-up capital floor and taxes qualifying profits at 8.25% under section 14B of the Inland Revenue Ordinance. Since 1 July 2024 captives follow the dedicated Marine Insurers and Captive Insurers Rules (Cap. 41U) rather than the full risk-based capital regime. Nine captives were authorised as at 6 July 2026.

2026-10-24

Author：Administrator
Advantages of Establishing a Captive Insurer in Hong Kong, China

Captive insurers in Hong Kong are approved by the General Business Division of the Hong Kong Insurance Authority. The Insurance Authority formally replaced the former Office of the Commissioner of Insurance (OCI) with effect from 26 June 2017. It is a statutory body operating independently of the Government of the Hong Kong Special Administrative Region, and its principal functions are to regulate and supervise the insurance industry in order to promote the overall stability of the industry and to protect existing and potential policy holders. It also plays both a captive supervisory role and a market promotion role. The Insurance Authority comprises a Chairman, a Chief Executive Officer and six Executive Directors of the Insurance Authority, all of whom must be appointed by the Chief Executive of Hong Kong.

2025-10-22

Author：Editorial Team
Insurance (Marine Insurers and Captive Insurers) Rules (Cap. 41U) — Capital Requirements for Captive Insurers under the Risk-based Capital Regime

These Rules took effect on 1 July 2024 with the implementation of Hong Kong’s risk-based capital (RBC) regime. They establish a dedicated simplified capital regime for captive insurers, under which capital is calculated by a simplified method based on net premiums or outstanding claims, and the capital floor is maintained at HK$2 million.

2024-07-01

Author：China Captive Network

From：Insurance Authority (Hong Kong)
Insurance (Amendment) Ordinance 2023 — Establishing the Risk-based Capital (RBC) Regulatory Framework

The Insurance (Amendment) Ordinance 2023 was gazetted on 14 July 2023 and establishes the risk-based capital (RBC) framework for Hong Kong’s insurance industry, with effect from 1 July 2024. Captive insurers are subject to the simplified capital regime under Cap. 41U and enjoy a number of regulatory reliefs.

2023-07-14

Author：China Captive Network

From：Insurance Authority (Hong Kong)
IA Guideline GL5, Guideline on Application for Authorization to Carry on Insurance Business in or from Hong Kong

IA Guideline GL5 sets out the approval process and documentation requirements for applying for authorisation to carry on insurance business in Hong Kong. An applicant for a captive insurer must meet the minimum paid-up share capital of HK$2 million, submit a three-year business plan and financial projections, explain its reinsurance arrangements, and pass the fitness and propriety review of its controlling shareholders and key persons in control functions.

2018-01-01

Author：China Captive Network

From：Insurance Authority (Hong Kong)
Turning Crisis into Opportunities: Developing Hong Kong as an Insurance Hub, with a Focus on Reinsurance, Marine Insurance and Captives

The Financial Services Development Council (FSDC) of Hong Kong today published the report “Turning Crisis into Opportunities: Hong Kong as an Insurance Hub with Development Focuses on Reinsurance, Marine and Captive”, stating that the challenges facing Hong Kong’s reinsurance, marine insurance and captive insurance sectors are the most evident, and that these areas are precisely the key to Hong Kong’s development as a financial centre and as a “super-connector” under the Belt and Road Initiative. The report recommends that the Government of the Hong Kong Special Administrative Region review the China Risk Oriented Solvency System (C-ROSS), consider tax relief for the insurance industry, and review Hong Kong’s insurance regulatory architecture.

2017-03-04

Author：Editorial Team
Insurance Companies (Amendment) Ordinance 2015 — Establishment of the Independent Insurance Authority and Assumption of the Supervision of Captive Insurers

The Insurance Companies (Amendment) Ordinance 2015 was enacted on 10 July 2015. The Insurance Authority was established under it in December 2015 and formally took over the OCI’s regulatory functions in respect of insurance companies on 26 June 2017. The Insurance Companies Ordinance was renamed the Insurance Ordinance at the same time, and the supervision of captive insurers has since been the responsibility of an independent statutory body.

2015-07-10

Author：China Captive Network

From：Insurance Authority (Hong Kong)
Inland Revenue (Amendment) Ordinance 2014 — Profits Tax on Captive Insurers’ Offshore Risk Business Halved to 8.25%

The Inland Revenue (Amendment) Ordinance 2014 amends section 14B of the Inland Revenue Ordinance (Cap. 112), under which the assessable profits of a captive insurer from offshore risk insurance business are taxed at one half of the corporate profits tax rate (8.25%), with the concession applying retrospectively from the year of assessment 2013/14.

2014-03-21

Author：China Captive Network

From：Inland Revenue Department (Hong Kong)
Insurance Ordinance (Cap. 41) — Basis for the Licensing and Supervision of Captive Insurers

The Insurance Ordinance (Cap. 41) of Hong Kong (formerly the Insurance Companies Ordinance) is the basic legislation for insurance supervision in Hong Kong. Section 2(7) provides the legal definition of a captive insurer, sections 6 and 8 set out the conditions for licensing and authorisation, and the minimum paid-up share capital of a captive insurer is HK$2 million.

1983-06-30

Author：China Captive Network

From：Insurance Authority (Hong Kong)