Following is the speech by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, at the Hong Kong Federation of Insurers (HKFI) Annual Reception 2024 today (April 23):

Orchis (Chairman of the Hong Kong Federation of Insurers, Ms Orchis Li), distinguished guests, ladies and gentlemen,

     Good evening. It gives me great pleasure to be here at the Annual Reception of the Federation of Insurers to share with you the vibrant trajectory of Hong Kong's insurance sector and our collective efforts to maintain our city as a premier global insurance hub.

     Hong Kong stands as one of the world's most open insurance centres – a demonstration of our robust regulatory framework and our strategic position in global markets. As of March this year, our city is home to 160 authorised insurers, including seven of the world's top 10, reflecting our global appeal and the trust placed in our financial system. According to provisional statistics of the Hong Kong insurance industry, last year alone, our total gross premiums reached an impressive HK$549.7 billion, approximately US$70.5 billion, underscoring our sector's dynamic growth and resilience.

     Aligning with the National 14th Five-Year Plan, we are committed to strengthening Hong Kong's role as an international financial centre and a global risk management hub. Our unique position under the "one country, two systems" principle allows the insurance industry to seize opportunities through integration in the national "Dual Circulation" strategy. We are both the "participant" in domestic circulation and "facilitator" in international circulation, leveraging our distinct advantages to enhance global connectivity.

     Building on these strategic advantages, in 2022, we published the Development Roadmap for the Insurance Sector in Hong Kong. This comprehensive plan clearly articulates the Government's vision and mission, outlining targeted policy measures to enhance our competitive edge and expand our capabilities in the global insurance market.

     In recent years, in line with the roadmap's objectives, we have implemented various measures to promote industry development, such as halving the profits tax rate for specific insurance businesses (including marine and specialty risks), expanding the scope of risks insurable by captive insurers formed in Hong Kong, and enhancing the legal framework for group-wide supervision. 

     Furthermore, our initiatives in insurance-linked securities (ILS) have marked significant advancements. Since establishing a dedicated regulatory regime and pilot grant scheme in 2021, we have successfully facilitated the issuance of four catastrophe bonds, totalling US$560 million. The purpose of these financial instruments is to provide a safeguard against the financial repercussions of natural disasters such as typhoons and earthquakes, both within the Mainland and in other parts of the world. We also welcomed the inaugural listing of an ILS in Hong Kong, and strive to attract more issuing institutions and professional talent, with a view to fostering the ILS ecosystem and expanding diversified channels for risk management.

     Looking towards the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), we see tremendous potential to enhance connectivity between the Mainland and Hong Kong insurance markets. We are working towards early establishment of after-sales service centres by the Hong Kong insurance industry in places such as Nansha and Qianhai, with a view to providing GBA residents who are holders of Hong Kong policies with comprehensive support. We have also implemented the "unilateral recognition" policy for cross-boundary motor insurance to tie in with "Northbound Travel for Hong Kong Vehicles", providing a more convenient channel to arrange the necessary insurance coverage for driving into Guangdong via the Hong Kong-Zhuhai-Macao Bridge.

     As we focus on regional integration and the expansion of insurance services, we are equally committed to ensuring the sustainability and resilience of the insurance sector through regulatory enhancements. In July last year, we enacted the relevant amendment ordinance and will prescribe detailed requirements to implement a risk-based capital regime for the Hong Kong insurance industry this year, with a view to strengthening the financial soundness of insurers and aligning with international regulatory standards. We also published consultation conclusions on establishing a policy holders' protection scheme last December, and will proceed to prepare the relevant legislative proposal in order to strengthen the protection of policy holders in case an insurance company becomes insolvent.

     Ladies and gentlemen, since its establishment in 1988, the HKFI has been fully committed to advancing and promoting the interests of the insuring public and the growth of the industry. It has been working closely with the Government to foster the development of the insurance sector. Its participation can be seen in virtually every initiative mentioned earlier, highlighting the importance of the Federation as a key partner of the Government and the Insurance Authority in pursuing the sustainable development of the Hong Kong insurance market.  

     Thank you once again for your dedication and commitment. I wish everyone an enjoyable evening and continued success and health in the year ahead.

     â€‹The Labour Department (LD) is highly concerned about a fatal work accident that happened in Sha Tin last night (April 22), involving four workers performing drainage work at manholes. Two of them were certified dead later in hospital, and the other two did not feel well and stayed in hospital. The LD is saddened by the deaths of the workers and expresses its deepest sympathies to the victims' families.
      
     The LD's spokesman said, "We commenced an immediate on-site investigation as soon as we were notified of the accident and issued suspension notices to the contractors concerned, suspending them from conducting drainage works at the manholes and the vicinity. They cannot resume the work process until the LD is satisfied that measures to abate the relevant risk have been taken."
      
     The spokesman added, "We will complete the investigation as soon as possible to identify the cause of the accident, ascertain the liability of the duty holders and recommend improvement measures. We will take actions pursuant to the law if there is any violation of the work safety legislation."
      
     The general duty provisions of the Occupational Safety and Health Ordinance require employers to provide safe working environments, plant and systems of work for their employees. Those who contravene the relevant provisions are liable to a maximum fine of $10 million and imprisonment for two years on conviction on indictment; or $3 million and imprisonment for six months on a summary conviction.
      
     In regard to last night's accident, the LD will issue a Work Safety Alert through its website and by email, giving a brief account of the accident concerned to duty holders, workers' unions, professional bodies of safety practitioners and others, and reminding the industry of the importance of following safety precautionary measures to prevent a recurrence of similar accidents.
      
     The LD will also remind the employer concerned of the liability for employees' compensation under the Employees' Compensation Ordinance, assist family members of the deceased to claim employees' compensation and closely follow up on the case. For those with financial difficulties, the LD will assist them to apply for appropriate emergency funds. Subject to the needs and wishes of family members of the deceased, the LD will also liaise with the Social Welfare Department for financial or other assistance.
      
     For the sake of securing the safety and health of employees at work, the LD appeals to employers to provide plant and systems of work that are safe and without risks to health. Employees should co-operate with their employers, adopt all safety measures and use personal protective equipment provided properly to avoid endangering their own work safety and that of other workers.

     The Hong Kong Public Libraries (HKPL) of the Leisure and Cultural Services Department (LCSD) today (April 23) held "Read Together for Half an Hour" activities at the Hong Kong Central Library (HKCL) and various LCSD venues on the first Hong Kong Reading for All Day. 

     The Secretary for Culture, Sports and Tourism, Mr Kevin Yeung, attended the "Read Together for Half an Hour" activity at the Exhibition Gallery of the HKCL today. He read together with students participating in the Hong Kong Inter-school Chinese Reading Contest organised by the Hong Kong Teacher-Librarians' Association a book from the book list of the contest. Through the lively introduction of the Dunhuang murals and the Silk Road in the book, Mr Yeung encouraged the students to further explore and appreciate the values and attitudes in Chinese culture.

     Mr Yeung said that reading was not bounded by time nor location. Once people pick up a book or a chapter they like, they can enjoy the journey themselves. He encouraged the public to read more and make it a habit.

     Apart from the HKCL, the LCSD set up various reading locations today at a number of its venues, including the Oil Street Art Space in North Point, the Kowloon Park Arcade and selected libraries, where a variety of books were placed for members of the public to read. Souvenirs were given to those who participated in "Read Together for Half an Hour" activities at the reading locations in selected public libraries. The Education Bureau today also held joint secondary and primary school 30-minute reading activities to enhance the reading ambience on campus, with more than 220 schools joining the activities. The Hong Kong Publishing Federation invited the public to join the "Read Together for Half an Hour" activity at the "Hong Kong Reading+" carnival at New Town Plaza in Sha Tin.

     In addition, starting from today, the maximum number of loaned library items of the HKPL has been raised from eight to 10 to encourage and enable readers to cultivate a reading habit. 

     For details of more events of Hong Kong Reading Week, please visit the thematic website (www.hkpl.gov.hk/hkrw).

              

     The Civil Service College (CSC), in collaboration with the Institute for Hong Kong and Macau Studies, Peking University, launched an in-depth programme on "one country, two systems" and contemporary China. As part of the programme, a lecture on the topic of "Urban-rural Relationship and Urbanisation in Contemporary China" was delivered by the Dean of the Department of Sociology of Peking University, Professor Zhou Feizhou, at the CSC today (April 23).
 
     The country upholds the philosophy of people-centred development, acting on the principle that a city should be built by and for its people. It emphasises the need to maintain a people-centred approach, focusing on the public's needs and prioritising liveability in urban development.
 
     Addressing the lecture, the Head of the CSC, Mr Oscar Kwok, said that the Government of the Hong Kong Special Administrative Region has long been upholding the country's people-centred governing philosophy, emphasising serving the public in a pragmatic manner to make Hong Kong a better place for living and working. The mission of the CSC is to strengthen training to build a civil-service team that is patriotic, loves Hong Kong, has good morals and integrity, and is competent and people-oriented. The CSC has infused the people-first and "one government" service ethos into various programmes, building a service culture driven by the needs of the people and the overall interests of the country and Hong Kong, which exemplifies the implementation of the country's governance philosophy and gives full play to the power and value of "patriots administering Hong Kong".
 
     Around 70 civil servants at the rank of Directorate Pay Scale Point 1 and 2 attended the programme. In addition, about 90 politically appointed officials and other directorate officers enrolled and sat in on the lecture via video conferencing.
 
     The programme was organised to further strengthen training for senior officials and directorate civil servants. It consists of 12 monthly lectures covering a wide range of topics, such as the Communist Party of China and contemporary China, socialism with Chinese characteristics, the theory and practice of "one country, two systems", as well as developments in contemporary Chinese society, economy, national defence, technology, and more. Distinguished scholars from the Mainland will deliver the programme and engage in in-depth discussions with participants.

      

     A spokesman for the Development Bureau (DEVB) said today (April 23) that the Government attaches great importance to construction site safety. In response to the fatal industrial incident at the sewer cleansing worksite in Sha Tin today, the DEVB, being the party to procure services for public works, has suspended the contractors concerned from tendering for public works contracts pursuant to the regulating regime. 

     The spokesman said that the contractors concerned were under the List of Approved Contractors for Public Works (the List). The DEVB issued notifications to the contractors concerned today to suspend them from tendering for public works contracts in the roads and drainage category with immediate effect. The contractors concerned have to conduct an independent safety audit to review their safety management system. Taking cognisance of the outcome of the independent safety audit, the contractors are required to submit an improvement action plan and implement improvement measures, with a view to demonstrating that they have an effective safety management system before uplifting of the suspension from tendering can be considered. The suspension from tendering is not only confined to future tender exercises, but is also applicable to tender exercises with procedures initiated but not concluded.

     Relevant government department is investigating this industrial incident and will handle it in accordance with the law. Subject to the investigation findings, the DEVB will impose further regulating actions on the contractors concerned later on, including extension of the period of suspension from tendering for public works contracts and even removal from the List.