Hong Kong has the potential to become an international hub for marine insurance and related businesses, provided the city offers tax incentives and implements rules to make it easier for insurers to raise capital, according to a US insurance broking giant.
“Hong Kong has a beautiful harbour, which makes the city a natural choice for the shipping industry and shipping insurance players to develop their business here,” Carl Hess, CEO of Willis Towers Watson (WTW), said in an exclusive interview with the Post during a visit to the city last week.
Chief Executive John Lee Ka-chiu, in his third policy address on October 16, said the government will provide tax exemptions for ship-leasing businesses and offer tax concessions for marine insurance, shipping management, shipping agencies and ship broking.
Hong Kong has 2,600 ships with an aggregate weight of 130 million gross tons, making it the world’s fourth largest register after Panama, Liberia and the Marshall Islands, according to government data. There are 82 authorised shipping insurers in the city.
Hess said Hong Kong’s shipping industry, alongside measures announced in the policy address, will help the city develop into a shipping and international insurance centre.
However, the government also needs to implement policies to attract insurance and shipping talent by teaching related courses in universities or importing talent through immigration schemes, he said.
