Hong Kong has long been known as a global metropolis and a leading cosmopolitan city that is highly appealing to businesses from around the world. However, the city’s international position is now in jeopardy. As insurance executives, it’s important to understand the current situation and take action to help reassert Hong Kong’s international position.

According to the American Chamber of Commerce in Hong Kong’s submission on the 2024 Chief Executive Policy Address, the city’s “Two Systems” framework and distinct characteristics need to be emphasized to maintain its international position. The Chamber suggests that the government should take action on the “Two Systems” aspect of the framework, such as the city’s separate regulatory environment, with tangible examples of business-friendly regulation and increased governance transparency. The uniqueness of Hong Kong, as distinct from other Chinese cities, should be further emphasized, as it is crucial to maintaining the city’s international position.

As insurance executives, it’s important to understand the impact of the current situation on the insurance industry. The Chamber suggests that the government should address any lingering misperceptions and hesitancy among foreign investors about Hong Kong’s business environment. This is where parametric insurance can play a role. With Riskwolf, insurance executives can turn real-time data into insurance. Using unique real-time data and dynamic risk modelling, insurers can build and operate parametric insurance at scale. This can help reassure foreign investors and maintain Hong Kong’s role as an international business center.

The Chamber also suggests toning down the National Security rhetoric. With the passage of the Article 23 on the heels of the National Security Law, it is time for Hong Kong, especially the government, to shift the focus and rhetoric away from “security”. Insurance executives can play a role in this by advocating for legal clarity to operate and preserve positive sentiment. The government should seek to reassure the business community that laws related to Hong Kong’s national security will be applied narrowly and consistent with the principles of an independent judiciary.

In conclusion, as insurance executives, it’s important to understand the current situation in Hong Kong and take action to help reassert its international position. With Riskwolf, insurance executives can build and operate parametric insurance at scale, helping to reassure foreign investors and maintain Hong Kong’s role as an international business center. Let’s work together to ensure Hong Kong’s continued success as a global metropolis.

Read the full submission on the 2024 Chief Executive Policy Address by the American Chamber of Commerce in Hong Kong here.