Introduction

Hong Kong may soon need to rethink its immigration policies if it aims to solidify its status as a global marine insurance hub. Analysts claim that without an expanded pool of skilled underwriters, the city's ambition could be at risk.

Current State of Marine Insurance in Hong Kong

Currently, foreign underwriters dominate the region's marine insurance sector due to a deficit in local talent and resources. Priscilla Foo, who oversees Marine and Energy for the Asia-Pacific region at Swiss Re, emphasized the urgent need for the city to attract more qualified professionals. "To maintain our status as a significant maritime hub, we must enhance our insurance and reinsurance services, including marine insurance," she stated.

The Insurance Authority reports that Hong Kong hosts 81 marine insurance providers, but only 10 are recognized as specialists in marine insurance. This limited concentration translates to vulnerabilities within the industry, as insurance brokers play a crucial role in helping maritime buyers navigate risks and secure appropriate coverage.

Lessons from London

Timothy Lee, deputy chairman of the Marine Insurance Association (MIA), observed that Hong Kong could emulate London's successful framework—home to Lloyd's of London, a powerhouse in marine insurance serving over 200 countries. He noted, "Lloyd’s has not only established itself as a leader due to a vast talent pool but also boasts reputable underwriters recognized globally." Lee stresses the need for Hong Kong to cultivate its own "Michelin Star" underwriters for competitive advancement.

Government Initiatives

In his 2024 policy address, Chief Executive John Lee unveiled initiatives aimed at enhancing marine insurance talent, including the expansion of the maritime and aviation training fund to offer courses in green energy and marine insurance certifications. The MIA has also created a training program acknowledged by the International Union of Marine Insurance (IUMI) to address the shortage of qualified professionals.

Moreover, Lee highlighted the financial support available, such as the Maritime and Aviation Training Fund (MATF), which not only covers marine insurance but also maritime law and shipping-related disciplines. Participants in approved online training programs can receive up to an 80% rebate on their educational expenses.

Attracting Foreign Investment

A more robust presence of competent underwriters in Hong Kong could attract foreign marine insurers, encouraging them to invest more heavily in the region. "With skilled professionals and viable business opportunities, we’ll see more investment flowing into the city," Lee remarked.

Strategic Advantages

Wong pointed out that alongside tax incentives—such as the reduction of profit tax for marine insurers to 8.25% in 2021—Hong Kong is leveraging its strategic position and relationship with Mainland China, especially within the Greater Bay Area, to enhance the industry's competitiveness.

Market Opportunities

James Lo, a senior underwriter at HDI Global SE Hong Kong, noted that the geographical proximity to China provides an opportunity for high-value maritime services. He urged that Hong Kong should expand its insurance offerings to include cyber risk for maritime operations, green shipping initiatives, and parametric insurance for climate-related events, all increasingly critical in a rapidly evolving market that now also considers artificial intelligence for autonomous shipping solutions.

Current Marine Insurance Products

Currently, the primary marine insurance products offered in Hong Kong encompass cargo, hull and machinery, and liability—specifically Protection and Indemnity (P&I), with ship-related offerings constituting a significant portion of the premiums. Foo affirms that Hong Kong’s marketplace is already rich with comprehensive marine insurance products, positioning it well to meet rising demands across various sectors from cargo to renewable energies.

Conclusion

The question looms: will Hong Kong rise to the occasion and cultivate its own marine insurance superstars, or will it continue to rely on overseas expertise? The path to becoming a leading marine insurance hub hangs in the balance, and it’s time for decisive action.