Blueprint for Success: Hong Kong’s Path to Becoming a Global Marine Insurance Hub, According to Willis Towers Watson CEO

Special Report | To transform into a maritime insurance epicenter, Hong Kong requires a strategic plan: According to insurance brokerage behemoth

The opportunity for Hong Kong to emerge as a core center for marine insurance depends on tax benefits and simplified fundraising schemes for insurers, as stated by Willis Towers Watson's CEO, Carl Hess.

The possibility for Hong Kong to emerge as a global center for marine insurance and associated industries exists, as long as the city introduces tax benefits and establishes regulations that simplify the process for insurance companies to accumulate funds, as per a leading US insurance brokerage firm.

"Due to its stunning port, Hong Kong is an ideal location for those in the shipping and shipping insurance sectors to expand their operations," stated Carl Hess, the CEO of Willis Towers Watson (WTW), during a private discussion with the Post when he was in the city last week.

CEO John Lee Ka-chiu, during his third policy speech on October 16, announced that the government plans to give tax breaks to ship-leasing companies and provide tax reductions for marine insurance, ship management, shipping agencies, and ship brokering.

According to governmental records, Hong Kong is home to 2,600 vessels with a total mass of 130 million gross tons, ranking it as the fourth largest registry globally, surpassed only by Panama, Liberia and the Marshall Islands. The city also hosts 82 officially recognized marine insurance providers.

Hess stated that the shipping sector of Hong Kong, coupled with the strategies unveiled in the policy address, will assist the city in evolving into a hub for shipping and international insurance.

In addition, the government must put in place strategies to draw in professionals in the insurance and shipping sectors. This could be achieved by offering relevant courses at university level or by bringing in skilled individuals through immigration programs, he suggested.