[Insurance industry] SF Holding and Grand Hotel establish dedicated captive insurance companies, authorized by the Insurance Authority; the number of Hong Kong captive insurance companies increases to 9

The Insurance Authority announced on Wednesday (the 8th) that it has granted new authorizations to two captive insurance companies established by well-known local luxury hotel and lifestyle brands: HSH Captive Limited, founded by Hong Kong Shanghai Hotels (00045), and SF Insurance Company Limited, established by Shunfeng Holding (06936), a Shenzhen-headquartered global logistics services provider. This brings the total number of captive self-insurance companies registered in Hong Kong to 9.

Xu Zhengyu: Continue to proactively engage companies with potential to establish captive self-insurance

Xu Zhengyu, Secretary for Financial Affairs and the Treasury, said that the hotel and Shunfeng have decided to set up dedicated captive self-insurance companies in Hong Kong, once again demonstrating the firm confidence of enterprises from both within and outside the Mainland in Hong Kong’s sound regulatory framework and superior business environment. Xu said that Hong Kong’s captive self-insurance market is gradually expanding, which will further consolidate Hong Kong’s position as a leading insurance and risk management hub in Asia, enabling companies to manage risks more effectively, while also supporting the economy’s sustainable growth.

Xu said: “The Government of the Hong Kong Special Administrative Region and the Insurance Authority will continue to proactively engage with Hong Kong, Mainland and international enterprises that have the potential to establish captive self-insurance companies, so as to further strengthen the local captive self-insurance ecosystem.”

Zhang Yunzheng, Chief Executive Officer of the Insurance Authority, believes that adding two more captive self-insurance companies brings new business and diversified operating models, and will make an important contribution to nurturing a mature captive self-insurance ecosystem in Hong Kong. It also confirms the authority’s successful implementation of its development strategy focusing on local multinational enterprises, Mainland state-owned enterprises, and private enterprises, and turning Hong Kong into a leading risk management center.

3 captive self-insurance companies added since the beginning of this year

Last year, two new captive self-insurance companies were authorized; while in the first half of this year, together with the above two companies, the Insurance Authority has issued authorizations to 3 captive self-insurance companies. The Financial Affairs and the Treasury Bureau said that large enterprises can manage risks more flexibly and cost-effectively through these specially set-up insurance subsidiaries. The strong momentum in the recent period reflects that enterprises’ recognition of Hong Kong’s regulatory environment and strategic positioning continues to rise.

According to Insurance Authority data, captive self-insurance companies (hereinafter referred to as self-insurance companies) are generally established by large enterprises and manage the group’s internal risks based on the defined underwriting scope. Self-insurance companies have lower administrative costs and compliance thresholds, which can enhance the group’s cost effectiveness and productivity. Setting up self-insurance companies helps enterprises monitor risks comprehensively, strengthen their internal risk management capabilities and governance, and this is especially crucial when enterprises expand overseas business, as self-insurance companies help enhance their resilience in dealing with complex risks. The use of self-insurance companies in the markets of Europe and the United States has been in place for decades; in Asia, it is currently still at the initial stage.

Based on provisional statistics for 2025, Hong Kong’s total gross premiums for its self-insurance business reached HK$2.13 billion. Hong Kong is currently the registered place for 9 self-insurance companies, including 3 established this year. The latest two self-insurance companies, HSH Captive and Shunfeng Insurance, were granted authorizations by the Insurance Authority in June and July 2026, respectively.

List of self-insurance companies authorized in Hong Kong: