Life insurers latest target in HK's bid to compete with Singapore

Regulator seeks return of investment roles in scrutiny over relocations: Sources

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HONG KONG — Life insurers have become the latest target in Hong Kong's efforts to compete with Singapore in retaining talent and capital.

Over the past year, Hong Kong's insurance regulator has been steering some of the financial hub's biggest life insurers to move investment decision-making functions back to the city following their relocation to Singapore, according to people familiar with the matter.

The push, led by the Hong Kong Insurance Authority (HKIA), started in early 2024 and is focusing on companies including AIA Group, the people said. The HKIA is a regulator independent of the government, according to its website.

Drawn by incentives such as tax advantages offered by the Monetary Authority of Singapore (MAS), some insurers have in recent years accelerated efforts to establish the city-state as a regional asset management hub, despite making policy sales mainly in Hong Kong, the people said.