Hong Kong’s government will submit tax relief proposals to promote the development of marine insurance and the underwriting of specialty risks in the city.

Chief Executive Carrie Lam Cheng Yuet-ngor, speaking at the Asia Insurance Forum, said that the proposals will be submitted to the legislative council next week, The Standard reported.

Lam noted that there are more than 10 leading global insurers operating in Hong Kong, and, if the proposals are accepted, these would serve as a boost to Hong Kong as a regional and global insurance hub.

The chief executive also expects that the granting of eight virtual insurance licenses by the Hong Kong Monetary Authority, as well as implementation of the proposal by the Securities and Futures Commission to include licensed virtual insurance platforms into the Fintech Supervisory Sandbox, will advance the development of financial and insurance technology in the market.

Meanwhile, Carol Hui, executive director of long term business at the Insurance Authority, urged the Hong Kong Government to promote the establishment of the cross-border Wealth Management Connect and Insurance Connect, which has been delayed due to the civil unrest gripping the city.

According to Asia chief economist for Swiss Re Clarence Wong, the health insurance gap in mainland China is around HK$390 billion (US$50 billion). Meanwhile, the Greater Bay Area is expected to result in more opportunities for Hong Kong insurers to fill this gap on the mainland.