Hong Kong’s insurance regulator has approved the first captive insurance company of 2026, marking another step in the city’s efforts to strengthen its position as a regional centre for specialised insurance and risk management.

The Insurance Authority granted authorisation to CNNC Captive Insurance Limited, a subsidiary established by China National Nuclear Corporation to insure risks within its corporate group.

The approval increases the number of captive insurers domiciled in Hong Kong to seven.

Captive insurers are companies created by large corporations to manage and insure their own risks, rather than purchasing coverage from the traditional commercial market.

The structure allows businesses to retain greater control over risk financing and can provide tailored protection for complex industrial operations.

Regulators said the approval reflects growing recognition of captive insurance as a core element of enterprise risk management for major global corporations.

Officials also indicated that Hong Kong aims to attract additional formations from mainland Chinese enterprises and multinational groups seeking a sophisticated financial and regulatory environment in Asia.

The establishment of CNNC Captive Insurance follows several new captive formations in Hong Kong over the past year, including vehicles created by major financial and industrial companies.

These developments have signaled renewed momentum for the city’s captive insurance sector after several years in which few new entities were authorised.

Industry observers say Hong Kong’s strong financial infrastructure, international connectivity and regulatory framework have made it increasingly attractive as a domicile for captive insurers.

Such companies are frequently used by multinational groups operating in industries such as energy, infrastructure and manufacturing, where complex operational risks require specialised insurance solutions.

Officials have emphasised that expanding the captive insurance segment complements Hong Kong’s broader strategy to develop its insurance market and strengthen its role as an international risk management centre serving both the Chinese mainland and the wider Asia-Pacific region.

With the addition of CNNC Captive Insurance Limited, Hong Kong’s captive insurance market continues to grow gradually, reflecting increased corporate demand for in-house risk management structures and the city’s ambition to attract more specialised insurance activity in the years ahead.