Hong Kong: Greater Bay Area initiatives announced in Policy Address welcomed by Insurance Authority and HKFI

| 01 Dec 2020

Hong Kong SAR Chief Executive Carrie Lam unveiled the government's blueprint for insurance in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in her policy address 2020.

Initiatives announced include:

  • Supporting Hong Kong’s insurance industry in establishing after-sales service centres in the Mainland cities of the GBA under the framework of the CEPA to provide Hong Kong, Macao and Mainland residents, who are holders of Hong Kong policies, with comprehensive support in different areas including enquiries, claims and renewal of policies (Section 64 of the Policy Address);
  • Strive to implement the ‘unilateral recognition’ policy for Hong Kong motor vehicles entering Guangdong (GD) through the Hong Kong-Zhuhai-Macao Bridge (HZMB) control point. The policy extends the coverage of third-party insurance policies issued by Hong Kong insurers to cover third-party liability in the Mainland, thereby deeming such policies as equivalent to the mandatory traffic accident liability insurance in the Mainland (Chapter 5 of the Supplement).

IA and HKFI welcome initiatives

Dr Moses Cheng, Chairman of the Insurance Authority, said: “The COVID-19 pandemic further demonstrates the practical need for and crucial functions of the proposed after-sales service centres. We have been in close contact with the China Banking and Insurance Regulatory Commission on this subject and are awaiting eagerly for an early breakthrough.”

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Dr Cheng also considers the “unilateral recognition” to be a positive move and commented that “Allowing Hong Kong private cars to enter Guangdong via HZMB without the need to take out a separate insurance coverage in the Mainland will pave way for more frequent and convenient movement of people within the GBA. The IA has been actively discussing with relevant authorities in the Mainland and will continue to render its total support.”

The Hong Kong Federation of Insurers (HKFI) said the initiatives will not only facilitate HK insurers’ provision of comprehensive after-sales services for holders of HK insurance policies in the GBA, but also allow HK private vehicles to travel in the GBA based on “unilateral recognition”. It will enhance traffic interconnectivity between Hong Kong and other cities in the Bay area and thus the development of cross-boundary motor insurance.

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The HKFI has been engaging the Insurance Authority and its member companies in the discussion of the relevant arrangements. Based on the “Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area” promulgated by the Central People’s Government, the HKFI will actively cooperate with the relevant entities in the GBA under the framework of CEPA to bolster integration and mutual growth of the GBA from the insurance perspective.

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