Insurance Connect between Hong Kong and mainland proposed
An Insurance Connect scheme has been proposed, after it was revealed that fewer mainland Chinese have been shopping for insurance coverage from Hong Kong.
The scheme follows the sooner Stock Connect and Bond Connect schemes that allowed traders in each Hong Kong and mainland China to commerce on the opposite market.
The creation of an Insurance Connect scheme would serve to “reboot” curiosity by mainlanders in shopping for insurance coverage insurance policies written in Hong Kong, in keeping with an editorial within the South China Morning Post.
Mainlanders spent simply HKD40.four billion on Hong Kong insurance coverage insurance policies for the primary three quarters of 2017, down 17% from the HKD49 billion spent throughout the identical interval final yr, information from the Hong Kong Insurance Authority revealed.
The most important causes cited for the drop-off are Chinese regulatory pressures from Beijing, in addition to the restoration of the yuan.
“The ‘Connect’ concept clearly works at generating cross-border trading and boosts the internationalisation of yuan,” Yiu wrote. “We have seen more cross-border trading of stocks, bonds and funds but insurance sector now appears to be missing the boat.”
She argued that if regulators are capable of create a very good framework between the 2 markets it will serve the Hong Kong insurance coverage sector properly, as considered one of its main sources of income is at the moment drying up.
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