HSBC Launches Captive Insurer in Hong Kong to Manage Regional Employee Risk

HSBC has launched a captive insurance company in Hong Kong to provide reinsurance for employee-benefit risks across the Asia-Pacific region, including coverage for 26,000 employees in Hong Kong, and other Asia-Pacific markets, according to a May 2, 2025, article by Enoch Yiu in the South China Morning Post titled "HSBC Sets Up Captive Insurer in Hong Kong to Support Growth in Asia."

The new entity, named Wayfoong (Asia), received regulatory approval and began operations on May 1. As reported by the South China Morning Post, this marks HSBC's latest investment in Hong Kong and follows the bank's previously announced plan to reallocate $1.5 billion from lower-return markets to high-growth regions such as Hong Kong, mainland China, Singapore, and India.

According to the article, HSBC's move comes after the Hong Kong government's 2021 policy update allowing captives to underwrite risks not only within Hong Kong but also those associated with a parent company's overseas operations. This regulatory change has been seen as a strategic enabler for multinational firms seeking to establish regional risk management platforms.

Per the South China Morning Post, Wayfoong (Asia) is the fifth licensed captive insurer in Hong Kong and the first to be set up by a multinational financial institution. The four other licensed captives are CGN Captive Insurance, CNOOC Insurance, Shanghai Electric Insurance, and Sinopec Insurance.

Hong Kong government officials expressed support for the development. The article quoted Financial Services and Treasury Secretary Christopher Hui, who said Hong Kong's foundation in investment and trade makes it an ideal base for accessing insurance, reinsurance, and risk management services.

As noted in the article, Luanne Lim, CEO of HSBC Hong Kong, stated that the captive aligns with Hong Kong's positioning as a global center for asset, wealth, and risk management. She emphasized that HSBC was proud to support the jurisdiction's evolving role in regional financial services.

Although the captive insurance sector in Hong Kong remains small relative to other jurisdictions, officials view HSBC's move as a promising signal. According to the article, Clement Cheung, CEO of the Insurance Authority, said HSBC's decision reflects growing confidence in Hong Kong as a captive insurance domicile for multinational captive insurers.

Hong Kong offers several incentives for captives, including a 50 percent profit tax concession, aimed at encouraging future growth.