The Hong Kong Insurance Authority has granted authorisation to Wayfoong (Asia) Limited, a wholly owned subsidiary of the HSBC Group, to operate as a captive insurer, described as the first captive insurer formed by a multinational enterprise based in Hong Kong. The announcement positioned the authorisation as supporting Hong Kong’s development as a captive domicile and risk management centre for multinational enterprises. Hong Kong’s Financial Services and the Treasury Bureau pointed to policy support including a 50% tax concession for local captive insurers and indicated that policy tools will be revisited to attract more multinationals to establish captives. Captive insurers are designed primarily to address a large corporate group’s geographically diversified risks by building internal capacity and optimising resource deployment.