The report examines the potential for Hong Kong to become an offshore RMB-denominated reinsurance center. The insurance industry in Hong Kong plays a significant role in the financial sector and economy, contributing 3% to GDP. In 2013, total gross premiums for the industry amounted to HK$290.7 billion, equivalent to about 14% of GDP. Hong Kong has established itself as one of the major insurance centers in Asia, but the reinsurance business has shifted to Singapore since 1997. The report suggests that promoting RMB reinsurance could help position Hong Kong as a leading offshore RMB reinsurance center and contribute to the internationalization of RMB. The proximity of Hong Kong to the largest reinsurance markets in Asia could also help establish it as a regional center for reinsurance and captives from Northern Asia.
