Hong Kong’s Insurance Authority has authorised the first captive insurance company of 2026, approving the formation of CNNC Captive Insurance Limited, a corporate-owned insurer established by the China National Nuclear Corporation.

The approval increases the number of captive insurers domiciled in Hong Kong to seven, reflecting the city’s efforts to strengthen its position as a regional hub for specialised insurance and risk management services.

Captive insurers are companies created by large corporations to insure risks within their own corporate group rather than selling policies to the wider public.

Regulators said the authorisation demonstrates continued interest from major enterprises in using Hong Kong as a base for managing internal insurance programmes.

Captive structures allow multinational firms and state-owned groups to retain specific risks on their balance sheets while gaining access to reinsurance markets and tailored coverage structures.

Industry officials note that captives have become an increasingly important component of enterprise risk management for global corporations.

By consolidating insurance coverage within a dedicated entity, companies can achieve greater control over risk financing, improve claims management and standardise policies across international operations.

The newly authorised company is expected to provide insurance coverage for risks associated with the China National Nuclear Corporation’s operations and affiliated entities.

Such arrangements are typical for captive insurers, which are designed primarily to insure the exposures of their parent group and subsidiaries.

Hong Kong’s regulatory framework allows captive insurers to conduct general insurance business subject to defined restrictions, ensuring that the companies remain focused on covering group-related risks rather than entering the broader retail insurance market.

Recent approvals suggest that Hong Kong’s captive insurance sector has begun to gain momentum after several years of limited activity.

Over the past year, several major corporations have established captive insurers in the city, signalling growing confidence in the jurisdiction’s regulatory environment and its role as a gateway for risk management solutions serving Asia-Pacific markets.

Officials at the Insurance Authority say they intend to continue promoting the development of the captive insurance sector, particularly among companies based in mainland China and across Asia.

The regulator argues that Hong Kong offers a combination of financial expertise, regulatory transparency and international connectivity that can support the growth of specialised insurance vehicles.

As multinational companies increasingly seek sophisticated approaches to managing operational risk, the expansion of Hong Kong’s captive insurance market is expected to create new opportunities for insurers, reinsurers and financial services providers operating across the region.