The Insurance Authority published consultation conclusions on enhancements to the Risk-based Capital Regime on 8 May 2026, targeting implementation by 31 December 2026 to support infrastructure investment and Hong Kong's competitiveness as a global risk management hub.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On May 08, 2026, the Insurance Authority ("IA") issued consultation conclusions regarding proposed amendments to the Insurance (Valuation and Capital) Rules (Cap. 41R) pertaining to the Risk-based Capital ("RBC") regime. These amendments are designed to incentivise insurance companies to invest in infrastructure, thereby supporting local economic development and enhancing Hong Kong’s competitiveness as a global risk management hub, all while maintaining appropriate prudential safeguards.
Consultation Feedback and Rule Refinements
Draft amendment rules were published in February 2026 for public consultation following a review of the RBC regime. While respondents generally supported the proposed amendments, feedback primarily addressed the scope of eligible infrastructure investments and reduction factors. The IA has carefully considered these comments and refined the draft amendment rules where appropriate.
Legislative Process and Implementation Date
The final draft amendment rules will be introduced to the Legislative Council for negative vetting, with an aim of implementation on 31 December 2026. The IA expresses sincere gratitude to all respondents for their active participation in the consultation. This process includes a consequential amendment to the Insurance (Maintenance of Assets in Hong Kong) Rules (Cap. 41T).
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